Anhui gov’t said to woo Xiaomi to settle in Hefei city

Anhui SASAC is in contact with Xiaomi car division and intends to introduce it into Hefei city, according to sources from Anhui Provincial Emerging Industry Investment Co Ltd, Auto-time.36kr.com reported.

Anhui SASAC is in contact with Xiaomi car division and intends to introduce it into its capital, Hefei city, according to sources from Anhui Provincial Emerging Industry Investment Co Ltd, Auto-time.36kr.com reported.

“Hefei and Xiaomi are negotiating, and Xiaomi is possible to settle in Hefei. But the specific investment promotion policy is still unclear,” said the source. In this regard, a person from Xiaomi’s public relations department stated that it “does not respond to this.”

Since Xiaomi announced its car-making plan at the end of March, major cities have tried to win over Xiaomi. In early April, Wuhan Economic & Technological Development Zone responded to relevant questions, saying that the zone has set up special teams immediately to “actively and enthusiastically” connect with Xiaomi.

Earlier this month, many news stories that many cities, including Beijing, Shanghai, Wuhan, Xi’an and other cities, were in contact with Xiaomi Group, hoping that Xiaomi cars would establish its vehicle unit there.

In this regard, on July 23, Wang Hua from Xiaomi’s public relations department issued an article saying that some information about the company’s car manufacturing plan is groundless in recent times and emphasized that Wuhan has not introduced it.

Based on the successful investment in NIO, Hefei has a relatively mature smart electric vehicle industry cluster. In late April this year, Hefei City and NIO started constructing Hefei Xinqiao Intelligent Electric Vehicle Industrial Park. If Xiaomi chooses to settle in Hefei, the supply chain won’t be an issue. Moreover, Xiaomi chairman Lei Jun is also a founding investor of NIO.

However, some pointed out that the talents for smart electric vehicles, especially smart cockpits and autonomous driving, are very concentrated in top-tier cities such as Beijing, Shanghai, and Guangzhou.

In contrast, in other cities, it is difficult to acquire technical talents, so Hefei may not be conducive to the construction of Xiaomi’s core technical team for car-making.

Disclaimer: This is an article created by Michael Liang for Chinasdg.org. You can find the original article here: https://chinasdg.org/2021/08/03/anhui-govt-in-contact-with-xiaomi-cars-will-it-settle-down-in-hefei/.

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