Xiaomi wants to make battery price 50% cheaper for electric cars

Xiaomi is currently one of the technology companies with the greatest impact and weight in the world. The telecommunications giant announced its foray into the electric car sector more than a year ago, and it has not been until now that its CEO, Lei Jun, has shared his point of view more closely about how the company thinks to carve out a niche among the world’s largest-volume automobile manufacturers.

In short, it can be said that Jun has caused a certain fear of the big names in the automotive sector. By the time he opened this thread on Twitter, he made it clear that 80% of the electric car market will be controlled by only 5 manufacturers globally, and the Chinese giant will not enter to compete in this sector if it is not to be among the big ones.

Broadly speaking, Jun determined that thanks to the entry into play of the electric car, the doors have been opened for new players in this field, since it is easier to amortize development costs thanks to the fact that a large part of the components that shape an electric car enjoy a very high modularity, which allows a large number of parts to be shared between vehicles.

“The manufacturing threshold for electric vehicles has been dramatically reduced compared to gasoline cars: 30,000 components are highly modular and the cost of batteries has dropped 80% in the last ten years (with at least 50% more margin of cost reduction in the future)”.

It is precisely the last aspect that the large manufacturers should be most concerned about, because thanks to its electronic devices, Xiaomi already enjoys a significant priority in terms of manufacturing batteries, and announcing that their prices, in their way see, can be reduced by up to 50% more in the future.  In other words, taking into account the weight it already has in the consumer electronics industry, and aiming for a volume of 10 million electric cars, it can be said, in a certain way, that it has the upper hand.

Xiaomi Electric Car

Beyond this, and on the product side, Xiaomi wants to understand an electric car as a form of electronic consumption: “I believe that electric vehicles are a form of consumer electronics whose core is intelligence, software, and the experience of the user. The essence of the automotive industry will evolve from mechanics to consumer electronics, where market share is highly concentrated among the major players.”

Be that as it may, the truth is that it will not be until 2024 that we see an electric car signed by Xiaomi, or at least a prototype or first preview of it, although the brand is already testing prototypes on the street, as well as its technology autonomous driving.

Elenor Kling

A tech lover and generally a car enthusiast who likes to do a lot of research and share knowledge.

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