It has been confirmed that Xiaomi, which established its Korean subsidiary in the second half of last year, included 'automobile sales' in its business objectives. The industry views this as preparation for future electric vehicle sales in the Korean market.
A report by CHOSUNBIZ on the 7th revealed that the business objectives stated in the articles of incorporation of Xiaomi Korea (Xiaomi Technology Korea) included 'import and wholesale/retail of automobiles (including parts).' Xiaomi Technology Korea, established on Sept. 5 last year, specified in its business objectives the import and wholesale/retail of mobile phones, mobile phone accessories, tablets, large home appliances, cleaning appliances, environmental appliances, consumer appliances, automobiles, and automobile parts.
An official in the IT sector said, 'Up until now, Xiaomi has sold smartphones and various electronic products through its Korean distributor.' They noted that explicitly including automobile import and sales in the business objectives of the Korean subsidiary is preparation to enter the electric vehicle market.
The appointment of Qiu Ruiheng, a general manager of the business sector of Xiaomi, as the executing officer of the Xiaomi Korea subsidiary also adds weight to the view that the establishment of the subsidiary in Korea is not solely for the purpose of selling smartphones and home appliances.
Xiaomi announced its entry into the electric vehicle market in 2021 and launched its first electric vehicle model, a large sedan named 'SU7', in March last year. According to market research firm MarkLines, Xiaomi sold 40,000 units of the SU7 in the third quarter of last year, ranking 18th in the global electric vehicle market in terms of sales volume. Xiaomi sold approximately 130,000 electric vehicles last year and has set a sales target of 300,000 units for this year.
A Xiaomi Korea official stated, 'While the possibility of selling electric vehicles in the domestic market is open in the future, there are currently no plans for electric vehicle sales.'
Professor Kim Byeong-kyu of Yonsei University's Department of Business Administration noted, 'Chinese electric vehicle companies are recently seeking to expand overseas due to economic downturns and population declines in the domestic market,' adding that 'Korea is attracting attention as a global testbed due to its well-established electric vehicle charging infrastructure and subsidies.'