Xiaomi is in talks with Evergrande to purchase its EV stakes

This would allow Xiaomi to leverage its Electric Vehicle plans even further

Xiaomi has ambitions to kickstart in the electric vehicle business as part of their Xiaomi environment expansion. They may jumpstart as they are in talks with Evergrande to purchase 65% of its stakes, including NEVS. A startup that owns the remainder of SAAB.

According to Reuters, the company has a market capitalisation of $12.5 billion and is looking to buy a minority stake. The company is currently in talks with Xiaomi and other state-backed investment firms about the sale of the New Energy Vehicle unit and its own car brand Hengchi, which revealed at least nine cars last April. If the purchase is successful, Xiaomi can become a stakeholder. No other details were announced

Hengchi electric vehicles
Hengchi-produced cars

The company has been in-talks with several EV manufacturers but is yet to decide which one would they work alongside with; they announced this on their Weibo last August 20th. It appears that this discussion is in its early stages so there might be huge changes in the plans in the future.

Another reason why Evergrande has been looking for investors is that they are hugely in debt.

Currently, Xiaomi is the world’s largest smartphone manufacturer in terms of market share and has surpassed both Apple and Samsung. The company is investing $10 billion over the next decade to develop their own car brand. In addition to Electric Vehicles, the company is also interested in the research and production of self-driving vehicles, a technology that NEVS has been working on for several years

Sources: Motor Authority, Reuters