Xiaomi acquires autonomous driving firm to boost electric vehicle goal

A Xiaomi symbol is found at a Xiaomi store on June 22, 2021 in Shanghai, China.

Wang Gang | Visual China Team | Getty Visuals

GUANGZHOU, China — Chinese electronics big Xiaomi has acquired an autonomous driving start-up, jumping into an very competitive space, although trying to diversify its enterprise further than smartphones.

Xiaomi reported Wednesday it had obtained Deepmotion for about $77.37 million to “enhance the technological competitiveness” of its electric motor vehicle enterprise.

In March, Xiaomi announced ideas to launch an electrical car or truck business enterprise and invest $10 billion above the future 10 many years.

The acquisition could assist deliver autonomous driving characteristics to the vehicles Xiaomi finally generates, a aspect getting produced by several automakers for next-technology electrical autos.

Xiaomi’s electric powered and autonomous vehicle ambitions will pit it towards China’s other technologies giants in what is turning out to be an significantly crowded house. Xiaomi will compete with companies like Baidu and even Huawei, as very well as carmakers together with Tesla, Xpeng and Nio.

The corporation declared the Deepmotion acquisition after reporting financial benefits for the next quarter which observed earnings surge 64% 12 months-on-12 months to 87.8 billion yuan ($13.5 billion). Xiaomi said complete profits and adjusted internet income hit history highs in the quarter.

Smartphones accounted for 67.3% of total earnings but the corporation has seemed to lessen its reliance on cellular phones by pushing into other web-related units. The business hopes electrical motor vehicles can be a new earnings stream.

Xiaomi shares were down almost 4% in afternoon trade.