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Xiaomi: There Has Never Been A Plan or Action to Acquire Evergrande Auto

May 31, 2024
in Technology
Xiaomi: There Has Never Been A Plan or Action to Acquire Evergrande Auto
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On May 30th, a spokesperson from Xiaomi company stated, “Regarding recent rumors, we solemnly clarify the following: Xiaomi has never had any plans or actions to acquire or control Evergrande Auto.”

Recently, there have been rumors circulating online that Xiaomi is looking to acquire 58.5% of Evergrande’s automotive shares. Regarding the reason for the acquisition, blogger @楚楚的留香 stated that it is mainly due to the strong sales of Xiaomi‘s SU7 model. With a combined production capacity of 300,000 vehicles in phases 1 and 2 at Xiaomi‘s Beijing factory, in order to further advance the production capacity of the Xiaomi SU7 and prepare for mass production of a second SUV model, Xiaomi plans to utilize Hengchi Tianjin factory for rapid expansion.

In response to this, Xiaomi has previously stated that they are not aware of such matters and are currently actively expanding their production capacity with their own phase two factory already under construction.

Actually, as early as 2021, there were reports that “Evergrande Group is negotiating with Xiaomi and an investment company supported by the Shenzhen government to sell part of its stake in the electric vehicle department.” In response, Evergrande Auto once issued a statement saying, “During the introduction of strategic shareholders process, Evergrande Auto had preliminary communication with Xiaomi Group and did not have in-depth discussions to advance.”

SEE ALSO: Evergrande Auto Faces Turmoil as Executive Director Detained on Suspicion of Illegal Activities

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