Xiaomi has secured a 50-year lease for a 485,134m2 plot of land in Beijing, China, with plans to use it for smart connected car and components projects, reported Reuters.
The acquisition, valued at 635m yuan ($88m), was announced by the Beijing municipal planning and natural resources commission.
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This strategic move positions Xiaomi as one of the few automakers in China expanding capacity in a market currently facing overcapacity challenges.
The company’s new YU7 sports utility vehicle is garnering more interest than the SU7 sedan, with customers facing up to a 51-week wait on Xiaomi’s app.
Xiaomi also launched the SU7 sedan last year, surpassing Tesla’s Model 3 in monthly sales since December.
The success of the SU7 is accelerating Xiaomi’s entry into the competitive EV market.
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By GlobalDataXiaomi has increased its EV delivery target for the year to 350,000 vehicles, up from the previous goal of 300,000.
The company initially planned to produce 300,000 vehicles annually at its EV factory, which will be constructed in two phases.
Orders for the YU7 will be taken starting at the end of June, with the launch previously scheduled for July.
In March, Xiaomi entered into a placement and subscription agreement to raise $5.5bn, involving the sale and issuance of 800 million shares.
This upsized deal from the initially planned 750 million shares is aimed at accelerating Xiaomi’s EV manufacturing initiatives.
The shares, priced at 53.25 yuan ($7.34) each, represent about 3.2% of Xiaomi’s existing issued share capital and approximately 1.2% of the voting rights as of the announcement date.
