A report reveals that Xiaomi is having difficulty getting permits in the development of its first car project. A source familiar with the matter revealed that some Xiaomi executives hoped the authorities would approve the project.
However, some suspect that this problem will hinder the company’s plans to continue its first car project.
“Xiaomi has difficulty obtaining a car-making license in China. And it could delay the debut of its first electric car, which is planned for release in 2024,” said Bloomberg Intelligence analysts Steven Tseng and Sean Chen, quoted from Carscoops, Tuesday (2/8/2022).
He added that delays could increase research, development and investment costs.
“This issue could weigh on its market share as China’s electric car segment is getting busier with fast-moving rivals such as Nio, Xpeng and Li Auto,” he said.
For information, companies wishing to enter the electric vehicle industry in China must submit documents to prove their financial and technological capabilities.
This review process can take several months and sometimes governments completely reject automakers’ applications.
However, a source said that licensing issues have not hindered Xiaomi’s electric car development process and plans to set up a large factory near Beijing.
In fact, Xiaomi is rumored to be showing off its first electric car prototype this month.
