Xiaomi Electric Car: The Chinese government blocked the license of Xiaomi's Rs 80,000 crore electric car project

The Chinese tech giant Xiaomi is going to enter the electric car market after shaking the world of smartphones. For a long time, there are strong speculations about their bringing this car. The photo of the car being tested on the roads of China has already gone viral on the net. But before its debut, Xiaomi's electric car project hit a snag. The administration has not yet received the license and other necessary clearances. That's the complaint. According to news agency Bloomberg, China's National Development and Reform Commission or NDRC has not given approval to the company. Xiaomi had applied for it several months ago. As a result, Xiaomi's electric car project stalled.

It is reported that Xiaomi has completed the preparations for the unveiling of the prototype model of their electric car next month i.e. August. The company even announced their investment of $1,000 crore or around Rs 80,000 crore for this project. The company announced the electric car business in March last year. At that time it was said that they would invest 150 crore rupees in the initial phase. And Rs 80,000 crore will be invested in multiple phases over the next 10 years. This battery powered car will be launched by Xiaomi Auto Company.

Xiaomi's co-founder Le Jun believes the delay in getting the approval will allow its main rival to capture the market earlier. Their competitors include Google, Apple, and Sony. Who have joined the race to bring automotive electric cars to the market. Even two famous Chinese companies Baidu and Huawei are going to come up with such cars.

Currently, China is the largest electric vehicle market in the world. Where ragbag companies like Nio, BYD and Tesla are single-handedly dominating. Le Jun believes that his company's experts can bring a renaissance to the world of electric cars with the help of connected technology. As a result, the current image of the Chinese market may also change.

The ideas of the concerned circles! The delay in getting Xiaomi's license is due to several electric car companies in China recently declaring bankruptcy. That's why the administration is strict about giving permission. Production of the company's upcoming car will begin from 2024. Delays in obtaining licenses may also delay the start of production. On the other hand, the future of over 1,000 employees working in the company's electric vehicle division is virtually uncertain as the approval process stalled. A temporary refusal to grant a license can result in a major setback to the firm's investment in R&D and manufacturing.