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Xiaomi’s electric car is in danger: permits delay its arrival and the competition gains ground

Last year, Xiaomi confirmed its intentions to participate in the automotive sector by offering a complete and, in principle, affordable range of electric cars. Its intention is to invest no less than 10,000 million dollars in 10 years and offer a first electric car in 2024. However, he has encountered an unexpected obstacle on his way. As reported Bloombergthe Chinese technology company has been discussing for months the necessary permits to do it with the regulators of his country without success, which is hindering and delaying your plans.

The smartphone giant is finding it very difficult to get regulatory approval for its electric vehicle project. Months of negotiations with officials from the National Development and Reform Commission have been unsuccessful. While some Xiaomi executives remain hopeful that this issue will be unblocked and that they can quickly get the green light, others fear that this process will delay the company’s plans.

Xiaomi, which has experience in the development and marketing of electric vehicles, especially two-wheelers such as scooters, mopeds and bicycles, has seen that it can go a little further. making the leap to the segment of the four wheels. A process that is not so simple since the automobile industry requires a series of more complicated conditions to comply with, a task that those who will be its main competitors such as BYD or NIO did a long time ago.

The sources from which this news comes ensure that the later these permits are achieved, the more competitive advantage other rival manufacturers of Xiaomi will accumulate. The arrival of the electric car has encouraged a multitude of new Chinese manufacturers to try to take a piece of a succulent cake that is about to be distributed. Before this panorama, Chinese authorities have stepped up surveillancetrying to avoid falling back into an initial phase in which several companies went bankrupt for not being able to carry out their project due to financing difficulties and technical problems.

New applicants are asked to submit a series of documents in which they must demonstrate your financial and technical capabilities. The process of reviewing this documentation can take months. In the end, the government sometimes rejects applications and companies are back to square one when it comes to the regulatory process.

Many of the new Chinese automakers established in recent years have been able to produce cars by acquisition of companies They already had the government credentials and permits to build cars. Others have associated with companies already existing as NIO with JAC and Jidu Auto with Geely.

First image of Xiaomi's electric car.
First image of Xiaomi’s electric car.

The lack of a permit to manufacture cars is still having a limited impact on Xiaomi’s plans, because it is still in the development phase of its first prototypes, but it could become in real trouble if you fail to unlock this matter.

Xiaomi officially announced that it was joining the race for the manufacture of electric cars on March 30 of last year, assuring an initial investment of 1,500 million euros and a total investment over 10 years of 9,800 million euros. At the end of November last year, Xiaomi signed a contract with the Beijing Economic and Technological Development Area Management Committee to build its division headquarters in Yizhuang, a city in Daxing County, southeast of the capital. of automobiles and its sales and R&D headquarters. His intention was to build a factory capable of producing 300,000 electric cars per year. The plant will be built in two phases, with an annual production capacity of 150,000 vehicles in the first and another 150,000 in the second. He further announced that he expected its first electric car would come off these production lines in 2024. Xiaomi’s Automobile Division already has 1,600 employees, according to information published by the local technology portal Sina Tech.

Currently, the company is waiting to receive the permits from the regulatory entity that will allow it to produce electric vehicles. It is also keeping an eye on the winter and summer verification tests of its products, and the construction of its marketing and after-sales service system, which according to local information, are progressing as planned.

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