Chinese smartphone giant Xiaomi has commenced construction on the second phase of its electric vehicle (EV) factory in Beijing. This development is part of the company’s efforts to expand its EV production capabilities and introduce new models to the market.
The new phase, located in Majuqiao within Beijing’s Yizhuang development zone, began construction on July 26, just 24 hours after securing the land deal, according to a statement from the Yizhuang development zone management committee posted on WeChat. Yizhuang officials visited the project site on July 31, expressing their commitment to supporting its construction.
An affiliate of Beijing-based Xiaomi acquired the land in a bidding process for RMB 842 million yuan ($116 million). The 531,130 square meter plot, with a 50-year land grant, is situated adjacent to Xiaomi EV’s existing factory and will be used for smart car and parts manufacturing projects.
Xiaomi’s entry into the EV sector was officially announced on March 30, 2021, when it revealed plans to establish a wholly-owned subsidiary for its smart EV business. In November 2021, Xiaomi signed an agreement with Yizhuang authorities to build a factory capable of producing 300,000 vehicles annually, to be constructed in two phases with an annual capacity of 150,000 vehicles each.
Xiaomi launched its first EV model, the SU7, on March 28 and began deliveries in early April, initially utilizing the automobile manufacturing credentials of BAIC Off-road Vehicle. Last month, a regulatory filing indicated that Xiaomi had gained independent car-making qualifications, as the manufacturer for the SU7 was changed to Xiaomi itself.
In July, Xiaomi EV announced that SU7 deliveries exceeded 10,000 units, with expectations to maintain this level in August. The company aims to meet its full-year delivery target of 100,000 units ahead of schedule by November.
Xiaomi EV Boosts Production Capacity for SU7 Amidst Strong Delivery Demand
Looking ahead, Xiaomi EV plans to launch its second model, an all-electric SUV aimed at competing with the Tesla Model Y, in the first half of 2025. Additionally, a third model, an extended-range electric vehicle (EREV) SUV, is scheduled for release in 2026.
“Xiaomi EV will meet its full-year delivery target of 100,000 units ahead of schedule in November,” the company stated earlier today.