Xiaomi gets the green light from Chinese government agency to build electric cars

It has been two years since smartphone company Xiaomi created its electric car division and revealed intentions to manufacture electric vehicles. However, in China, these plans necessitate government approval before production can commence, and Xiaomi struggled to obtain such clearance until recently.

Xiaomi has received approval from China's National Development and Reform Commission (NDRC). The NDRC oversees investment in the automotive sector and carefully evaluates proposals to filter out weak-looking projects that are likely to fail, something that's become more likely due to a combination of a glut of available EVs and a slowdown in demand. 

Reuters says that Xiaomi's electric vehicle business is only the fourth of its kind to receive the NDRC's approval in nearly six years, a feat that US-based Lucid has not yet accomplished.

So it's great news for Xiaomi executives. But there is one more regulation to clear for the project, it needs final approval from the Ministry of Industry and Information Technology (MIIT). The MIIT evaluates new cars to ensure they meet safety and technological standards.

Earlier this year, pictures surfaced of Xiaomi's MS11, a sedan with four doors designed in a coupe style. It has door handles that are flush with the car body, Brembo brakes, and a Lidar sensor mounted on the roof, which gives the car autonomous features.

The company is investing $10 billion over the next ten years in its electric vehicle projects. It has already built a new factory in Beijing that can manufacture 200,000 EVs annually once it reaches full production. However, sources from Reuters stated that the factory will only produce 100,000 vehicles in its first year of operation. That will be in 2024.