Xiaomi Invests 120 Million USD in Second Phase Factory

Xiaomi Commences Second Phase Factory

China consumer electronics giant recently bought an area for 842 million yuan (approximately 120 million USD), it is considered to be for its second phase car factory.

According to media reports, Xiaomi's second phase of the factory is under construction now. The factory is next to its Yizhuang factory, covering an area of about 531,000 square meters. As the public information shows that the annual capacity will be 150,000 vehicles for the second phase factory, the same as the first phase factory.

Strengthening the Automotive Footprint

Xiaomi released its first model the Xiaomi SU7 on March 28th this year, receiving 100,000 orders in 40 days after the launch, a considerable market success. There are three variants available for sale:

- Standard Edition, pricing at 215,900 yuan;

- PRO Edition, pricing at 245,900 yuan;

- MAX Edition, pricing at, 299,900 yuan.

According to the market sales data, Xiaomi delivered 10,000 vehicles in mid-May, 20,000 vehicles in mid-June, and it delivered more than 10,000 vehicles monthly from June to August. In this delivery speed, Xiaomi will complete the annual delivery target of 100,000 vehicles ahead of the schedule in November. Then the company will make effort to achieve its target of 120,000 vehicles delivered within 2024.

Strategic Manufacturing and Industrial Impact

Xiaomi’s auto manufacturing business started in Beijing, and initially used BAIC's license to produce cars. It has officially obtained a vehicle manufacturing license this July, becoming the 17th car manufacturer in China. Located in the Beijing-Tianjin-Hebei region, the company’s 70% parts are from the local suppliers, making it a drive for the intelligent manufacturing capabilities and industrial upgrading of the region.

It is estimated that, after reaching full production capacity, Xiaomi can produce about 40 Xiaomi SU7 vehicles per hour, and every new car will come off the assembly line in just 76 seconds.