When China's Tech And Appliance Giants Become EV Manufacturers
Xiaomi, a Chinese smartphone giant, is joining the fray in the country’s booming EV industry, as it announced a long-anticipated plan to produce all-electric cars in the industry’s largest market and invest USD 1.5 billion over the next 10 years. The company hopes to offer quality smart electric vehicles for customers to enjoy smart living anytime, anywhere. Not only is Xiaomi competing with established automakers in China, such as Geely and BYD, but also upstarts like Nio and Xpeng Motors.
Meanwhile, Internet companies are also entering the smart electric vehicle arena. Chinese search giant Baidu has formed a strategic partnership with automaker Geely to create a standalone electric vehicle unit and Baidu aimed to launch the vehicle in 3 years. Baidu’s push into electric vehicles is an attempt to diversify its business beyond search engine and advertising. AutomotiveNews reported that Baidu wished the automated EV joint-developed with Geely to become a benchmark product and convince other carmakers in China to adopt Baidu’s autonomous driving technology.
Attracted by the huge market potential of NEV, home appliance companies also join the battle. Chinese carmaker SAIC Motor and appliance giant Haier signed a preliminary agreement to jointly develop intelligent transportation systems this month. Yicai Global reported that the pair will collaborate on the research and application of smart driving technologies, interconnections between homes and vehicles, intelligent manufacturing and some other fields.
It is noticeable that a great number of Chinese leading companies from different sectors have rushed into the EV bandwagon. However, deriving a profit from the automotive industry is tricky. As a commodity, vehicles account for a large share of household expenses. Branded cars have a great place in the consumer's mind. When customers go for a car, they prefer to purchase a well-known branded car. Thus, to compete with traditional car manufacturers, new players have to invest more in building brand credibility. Besides, with more players entering the auto industry, China's EV battle is getting more fierce. It's incredibly hard to predict whether those new players like tech companies will win customer's trust and survive this competition intact.
Source : 699pic
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