BEIJING — Xiaomi, a well-known maker of smart consumer electronics in China, is joining the country's booming but crowded market for electric cars.
Xiaomi, founded in 2010, is entering an overcrowded market that analysts expect will undergo a shakeout in coming years, with weaker startups falling by the wayside. Tu Le, the founder of the Sino Auto Insights consultancy, said that Xiaomi is trying to close the loop by adding transportation to a product mix already integrated into its customers' personal and professional lives.“The ability to seamlessly be a continuous part of someone’s life is the holy grail for tech companies,” he said in an emailed response.
CreditSights, a financial research firm, said it expects Xiaomi's EV division to sell 60,000 vehicles in its first year and lose money for its first two years because of high marketing and promotion costs.“China is determined to dominate the future of the auto market, including by using unfair practices,” President Joe Biden said when the U.S. investigation was announced. “China’s policies could flood our market with its vehicles, posing risks to our national security.
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