The chief executive of Xiaomi says the technology giant is already testing 140 vehicles across China equipped with advanced autonomous driving technologies.
Xiaomi first announced its plans to venture into the world of electric vehicles last year and while recently speaking during a company event, CEO Lei Jun said it already has a workforce of 500 staff devoted solely to developing autonomous driving technologies for its EVs. He added that the automaker has already dedicated 3.3 billion yuan ($490 million) to the self-driving initiative, Reuters reports.
Word about the company’s roll-out of autonomous vehicle prototypes comes less than two weeks after reports surfaced that Xiaomi has been speaking with officials from the National Development and Reform Commission in China but is facing difficulties in getting regulatory approval for its car project.
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Xiaomi has already committed $10 billion to the automotive venture and has long planned to introduce its first EV in 2024.
New companies entering the automotive space in China need to submit documents to prove their financial and technological capabilities. This review process often takes several months and in some cases, the government completely rejects applications. While Xiaomi has not yet received the required approvals for its car project, that doesn’t appear to have slowed it down.
In fact, Xiaomi has already commenced work on its first automotive factory that’s located in Beijing.
“Xiaomi’s difficulty in securing a carmaking license in China, as reported by Bloomberg News, could hinder its EV development and postpone the debut planned for 2024,” Bloomberg Intelligence analysts Steven Tseng and Sean Chen recently said about the issue. “The delay could prolong the drag from hefty R&D expenses as well as fixed asset investments and may weigh on its market share as China’s EV segment is getting increasingly crowded with fast-growing rivals Nio, Xpeng and Li Auto.”
