Xiaomi acquires software company Deepmotion to build autonomous cars
We’ve been hearing about Xiaomi’s investments to develop its own electric car for some time now. Now, we are seeing some more concrete steps in this initiative. The company bought Deepmotion, a Chinese startup that develops driving assistance software, for $77.37 million.
It may seem like a lot of money at first, but it’s hardly close to the plan to invest $10 billion in electric cars over the next ten years.
The idea is to set up a subsidiary to operate the business, with the right to its own research, development and manufacturing. The CEO of the new branch will be Lei Jun, who also runs Xiaomi.
The field of electric and autonomous cars is recent, but it is already getting very competitive with the arrival of new players who were used to the technology market. In addition to Xiaomi, Baidu also has its type vehicle, and the Apple Car is a long-standing rumor.
For now, there is no date set for us to see any of these on the streets.
Investing in electric cars is bold, but Xiaomi’s recent growth certainly helps pay for it. The company took advantage of its counterpart Huawei’s decline after US sanctions to grab a bigger slice of the smartphone market.
And put it even further: in quarterly lists, it is the second largest manufacturer in the world, and, in the monthly rankings, it even beat Apple and Samsung to take the global lead for the first time in July.