Xiaomi pours RMB425 million into innovative business including car making in Q1 2022

Beijing (Gasgoo)-China’s smartphone giant Xiaomi recently released its 2022 first-quarter financial results with year-on-year growth in R&D expenses partially caused by its intelligent electric vehicle business.

Photo credit: Xiaomi

From January to March, Xiaomi spent RMB3.5 billion ($524.9 million) on R&D alone, jumping 16% year over year. The company explained that the boost was a result of the salary of R&D employees and its freshly launched new businesses, such as its auto-making endeavor.

In the first quarter, Xiaomi poured RMB425 million ($63.74 million)intoits innovative business, including carmaking business sector, and the investment size continues to expand.

Earlier in March 2022, Xiaomi disclosed that its auto making business has overachieved in progress. The first EV under the Xiaomi name can be expected for mass production in the first half of 2024. As of March, Xiaomi’s auto team has recruited over 1,000 talents. With its resources and determination, Xiaomi’s ambition will not conclude with auto-making, but will branch out to autonomous driving and intelligent cockpit.

On April 11th this year, Xiaomi has broken ground at its vehicle manufacturing base in Beijing’s Yizhuang District. Phase I of the factory is scheduled to finish in June 2023, while phase II starts in March 2024 and ends in March 2025. The combined annual production volume of the plant is 300,000 vehicles, with 150,000 vehicles each.