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Xiaomi acquires autonomous driving agency because it appears to spice up nascent electrical automobile enterprise

A Xiaomi emblem is seen at a Xiaomi retailer on June 22, 2021 in Shanghai, China.

Wang Gang | Visible China Group | Getty Pictures

GUANGZHOU, China — Chinese language electronics large Xiaomi has acquired an autonomous driving start-up, leaping into a particularly aggressive space, whereas attempting to diversify its enterprise past smartphones.

Xiaomi mentioned Wednesday it had acquired Deepmotion for round $77.37 million to “improve the technological competitiveness” of its electrical automobile enterprise.

In March, Xiaomi introduced plans to launch an electrical automobile enterprise and make investments $10 billion over the following 10 years.

The acquisition might assist convey autonomous driving options to the vehicles Xiaomi finally produces, a function being developed by many automakers for next-generation electrical autos.

Xiaomi’s electrical and autonomous automobile ambitions will pit it in opposition to China’s different know-how giants in what’s changing into an more and more crowded house. Xiaomi will compete with corporations like Baidu and even Huawei, in addition to carmakers together with Tesla, Xpeng and Nio.

The corporate introduced the Deepmotion acquisition after reporting monetary outcomes for the second quarter which noticed income surge 64% year-on-year to 87.eight billion yuan ($13.5 billion). Xiaomi mentioned complete income and adjusted internet revenue hit file highs within the quarter.

Smartphones accounted for 67.3% of complete income however the firm has appeared to scale back its reliance on cell phones by pushing into different internet-connected gadgets. The corporate hopes electrical autos is usually a new income stream.

Xiaomi shares had been down practically 4% in afternoon commerce.

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