- Tram Ho
Partnerships formed between EV startups and traditional automakers are becoming increasingly common in China.
Recently, information from Bloomberg shows that Xiaomi is considering linking with Beijing Automotive Group (BAIC) to produce electric cars. The reason for this cooperation is said to be the result of difficulties and delays in obtaining permits to produce electrified vehicles.
The reason for this comes from a move to increase supervision in the electric vehicle sector from policymakers, in which the government restricts the issuance of production permits to new electric car startups to limit investment. exceed. Previously, Nio also chose to cooperate with Jianghuai Automobile Corporation (JAC) to produce electric cars.
Under the initial agreement, electric vehicles developed and manufactured by Nio would have to carry the JAC brand. However, the two companies discussed and agreed to exclude the above clause, in exchange for additional fees added to the content of the agreement.
Xiaomi and BAIC are considering various options, including the possibility of Xiaomi acquiring a stake in the Hyundai No. 2 factory in Beijing, which is the result of a joint venture between BAIC and Hyundai and has been built since 2008. .
The partnership could provide the market with EVs manufactured by BluePark New Energy Technology – BAIC’s electric vehicle development unit – while sharing the brand with Xiaomi, Bloomberg News reports.
At the moment, both Xiaomi and BAIC declined to comment on the information mentioned.
An expert working at BAIC’s EV unit told Reuters he was unaware of the negotiations taking place between BAIC and Xiaomi. This person also declined to give his name for fear of possible trouble.
Meanwhile, a spokesman for Hyundai confirmed that the claims related to the Korean automaker in the above report are “baseless”. Beijing Hyundai is currently a joint venture between Hyundai Motor and BAIC that owns three auto factories located in the Chinese capital Beijing.
Xiaomi started construction of its first electric car factory in Beijing earlier this year, following a statement that underscored its ambitions in the competitive and challenging electric vehicle sector.
According to the revealed information, Xiaomi’s factory can meet an annual capacity of up to 300,000 vehicles. Previously, Xiaomi had set a target of mass production of its first electric car model by 2024.
According to Reuters
Source : Genk