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August 27, 2021

Xiaomi targets autonomous driving with Deepmotion acquisition

Another Chinese tech giant looks for autonomous drive and smart digital synergies through acquisition.

By David Leggett

Chinese smart-phone giant Xiaomi Corporation announced this week it plans to acquire local 3D imaging start-up Deepmotion in a deal worth over US$77m, as it looks to expand into the autonomous driving and connected technology sector.

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Gauge the impact of shifting M&A volumes in Automotive

Deal-making sentiment seems to have emerged stronger out of the downturn as M&A activity reached a record high during 2021. The momentum set in towards the end of 2020, continued through 2021 with all the quarters reporting deals with a cumulative value of around $1 trillion across the year.  While most deals-based analyses focus on the win or lose for deal participants, GlobalData's League Tables provide you with insights on the Automotive players benefitting from these M&A volumes. The deal types covered in our report include: 
  • Mergers 
  • Acquisitions 
  • Asset transactions 
  • Private equity buyouts 
Use our report to understand your company’s performance across target regions and get insight into the volumes your competitors are able to generate in your markets of focus. 
by GlobalData
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Xiaomi’s CEO Lei Jun is looking to diversify the company’s business and is said to have pledged to invest US$10bn to establish itself in the smart electric vehicle (EV) market.

Cash-rich Xiaomi reported a 64% surge in revenues in the second quarter of 2021 to CNY87.8bn (US$13.5bn), helped by strong demand growth in India.

Xiaomi president Wang Xiang confirmed on Wednesday his company is mainly interested in Deepmotion’s autonomous driving and driver assist software development division, as it looks to develop Level 4 self-driving capabilities. He said in a statement “through this acquisition, we hope to shorten the time to market for our products. We want to speed up our autonomous driving research and development.”

Xiaomi is looking to take on a number of Chinese technology giants, including Huawei Technologies Company and Baidu Inc, which have been investing in self-driving technology development for several years.

The company is looking to hire an initial 500 engineers to drive forward its EV project and has held talks with a number of automakers and local governments on establishing potential partnerships.

Last week it was reported to have held talks to acquire a stake in China Evergrande New Energy Vehicle Group, a subsidiary of property company China Evergrande Group, as well as with Black Sesame Technologies – a startup that develops artificial intelligence chips and systems for vehicles.

 

Free Report
img

Gauge the impact of shifting M&A volumes in Automotive

Deal-making sentiment seems to have emerged stronger out of the downturn as M&A activity reached a record high during 2021. The momentum set in towards the end of 2020, continued through 2021 with all the quarters reporting deals with a cumulative value of around $1 trillion across the year.  While most deals-based analyses focus on the win or lose for deal participants, GlobalData's League Tables provide you with insights on the Automotive players benefitting from these M&A volumes. The deal types covered in our report include: 
  • Mergers 
  • Acquisitions 
  • Asset transactions 
  • Private equity buyouts 
Use our report to understand your company’s performance across target regions and get insight into the volumes your competitors are able to generate in your markets of focus. 
by GlobalData
Enter your details here to receive your free Report.

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