Smartphone maker Xiaomi will begin making electric vehicles (EV), using Great Wall Motor Co Ltd’s factory.
Xiaomi is one of the world’s largest smartphone makers, but is looking to diversify its business. Since it primarily makes Android-powered smartphones, it doesn’t enjoy the same margins as Apple, and depends on volume to remain profitable. The company has also faced challenges as a result of bans by the US, with officials citing the security risk it poses.
According to Reuters, the company is looking to follow a similar path as many believe Apple is following, branching out from a smartphone maker to an EV maker. The company is planning on having Great Wall handle the manufacturing, the first time the latter has offered its manufacturing services to an outside company.
According to Reuters’ sources, Xiaomi plans to sell its EVs to the mass market, mirroring its approach to the smartphone business.