Xiaomi Corp (OTC: XIACY) explored collaborating with Beijing Automotive Group Co to produce electric vehicles, Bloomberg reports.
Xiaomi weighed buying a stake in Beijing Hyundai Motor Co, Ltd (OTC: HYMTF) No. 2 plant, which is fully licensed to make cars in China, and a production tie-up as it faces delays in acquiring a license to drive vehicles on its own.
The collaboration could see vehicles built by Beijing Automotive’s EV brand, BAIC BluePark New Energy Technology Co, co-branded with Xiaomi.
While the aging No. 2 plant needs substantial upgrades to manufacture EVs, BluePark has a production capacity that could serve to make Xiaomi-BAIC vehicles, note Bloomberg.
The collaboration would allow Xiaomi co-founder Lei Jun to salvage a pledge to invest $10 billion over a decade to make Xiaomi-branded cars in 2024.
China has intensified scrutiny of EV firms encouraging mergers and acquisitions to better deploy resources within the industry.
Reportedly, Xiaomi’s $10 billion EV project in China struggled for regulatory clearance as it failed to cut a breakthrough despite months of conversations.
China’s electric car market is already crowded, with big shots like Tesla Inc (NASDAQ: TSLA), NIO Inc (NYSE: NIO), and Warren Buffett-backed BYD Co, Ltd (OTC: BYDDY).
Baidu, Inc (NASDAQ: BIDU) to Huawei Technologies Co also weighed opportunities in the EV space.
