This Ace Chinese Smartphone Maker Wants To Join The EV Race: Report

Xiaomi Corp 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 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 TSLA, NIO Inc NIO, and Warren Buffett-backed BYD Co, Ltd BYDDY.

Baidu, Inc BIDU to Huawei Technologies Co also weighed opportunities in the EV space.