Chinese smartphone maker Xiaomi is known for branding a wide variety of products with its own branding, whether or not they are associated with its core business of smartphones These include smart light bulbs, escooters, and even suitcases

But now the company has gone a step further, announcing that it will launch its first Xiaomi electric car in the first half of 2024 It really is It sounds like a totally ridiculous idea, but it is

We've all heard that Apple is another company trying to get into the electric car business However, the legendary Apple Car has been in development since at least 2014, and Apple is reportedly having problems making that project a reality

Whether it is the loss of a key executive, the problem of finding an automotive partner to help with production, or the actual difficulty of switching from phones and computers to a moving car that may or may not be fully autonomous, it is clear that Apple is facing some major obstacles is clear

Given that, and given that the auto industry is already quite competitive, the jump from phones to cars seems like a pretty crazy idea Especially given the promise of making it happen in such a short period of time

Xiaomi's group chairman, Lei Jun, who made this announcement at the company's investor event, certainly doesn't think so In fact, Lei claimed that if Xiaomi does not participate in the transition to electric vehicles, it will be "eliminated"

And this does not appear to mean that Xiaomi will put its own label on another company's product, as it has done with many of its other products The company has announced that it will establish a wholly-owned subsidiary to operate its EV business, with an initial investment of $154 billion, suggesting that this is the real deal

This investment is also expected to reach $10 billion over the next 10 years This is no small sum

Of course, Ray is not wrong when he says that the automotive industry is now more of an information industry than a mechanical industry Automobiles are becoming increasingly sophisticated, high-tech, and increasingly dependent on data and connectivity [The technology industry is selling people on the idea that self-driving cars will be connected via enhanced connectivity networks As a result, self-driving cars will be more aware of the presence of other vehicles and will be able to change their speed, route, and location accordingly

According to price comparison site Uswitch, future electric cars can only benefit from the expertise and experience provided by technology giants such as Xiaomi, Apple, and Google; in a statement to Tom's Guide, Uswitch said, "By approaching car-making from a technological perspective By working from a technological perspective, the sector can thrive in a connected world that embraces new advances in technology"

Sergio Savaresi, professor of automatic control at Politecnico di Milano, also noted that "the technical content of autonomous vehicles is heavily biased toward digital technology While we have not yet reached the stage where cars drive autonomously, the automotive industry is working hard to achieve it These vehicles will eventually rely on electronic hardware, sensors, telecommunications, and algorithms and other software to make them work

In other words, exactly what high-tech companies are already capable of handling According to Prof Savaresi, the future of autonomous driving "represents a very attractive opportunity for consumer electronics giants to enter the automotive market and, thanks to their high-tech knowledge, to occupy a leading position" "

Electric vehicles are simply a means to an end and serve as an intermediary for technology companies to enter the market It also helps that many of the essential components of EVs, such as power electronics, lithium batteries, and electric motors, are much closer to the consumer electronics sector than to the internal combustion engine

Besides, Uswitch believes that brand recognition by these companies will also help consumers get into eco-friendly vehicles He says, "With well-known tech brands like Apple and Xiaomi, customers can feel more confident in their research and eventual purchase choices

Nevertheless, brand recognition will not magically create electric cars out of thin air It is still up to high-tech companies to actually make the jump from a small personal device like a smartphone or tablet to a vehicle that actually works

However, Matas Buzelis, head of communications at carVertical, an automotive data company, noted that the difference between electric vehicles and internal combustion engines will play an important role in bringing new entrants to the market [The days when the Volkswagen Group, GM, Toyota, or other well-known automakers had the upper hand in the engine sector are almost over," he said It's much easier to start an automotive manufacturing business that builds cars without traditional drivetrains, transmissions, or ICE [internal combustion engine] powerplants," he said But the ticket into the automotive market is very expensive"

"The cost of entry into the automotive market is very high

According to Buzelis, producing a single mass-market EV would require billions of dollars in R&D investment, which could take too long to pay off; the fact that EVs lack many of the components considered essential for gas-powered vehicles is also not likely to be an advantage, as the electrical components are not really easy to process This is not likely to be an advantage, as electrical components are not really easy to fabricate More importantly, the cars will be subject to strict safety standards, which will be the biggest problem for newcomers to the auto industry

There is also the fact that the auto industry is already quite crowded and new entrants will have to compete with existing auto industry leaders, many of whom have already been in business for over a century

It is unclear to what extent Xiaomi's electric car is actually in development But the idea of a high-tech company entering the auto industry does not sound as far-fetched as it may at first sound Not only would it be hard to actually pay to develop a car, but it would also be hard to compete with automakers that are decades ahead of us

Then again, companies like Xiaomi have historically focused on the software side Hardware, by Xiaomi's own admission, has been a means of drawing people into a truly lucrative ecosystem As a result, the company's phones are very cheap compared to its competitors

It stands to reason that this same philosophy would apply to electric cars, keeping the machines at a very competitive price point, something that EVs largely lack 2024 still seems like a pretty ambitious goal Especially since a company like Apple has spent so much time on a similar product, yet has not publicly announced anything

Thus, we can only wait and see what happens And whether other big tech companies will also want to get into EVs