Xiaomi’s Reported Acquisition of Deepmotion for $77.4 Million

Xiaomi is reportedly in talks to acquire Deepmotion, an autonomous driving technology startup, for $77.4 million. This potential acquisition aligns with Xiaomi’s ambitions to venture into the electric vehicle market, according to reports from GizmoChina.

About Deepmotion

Deepmotion specializes in the development of driver assistance software, a crucial component in the realm of autonomous driving technology. The acquisition of Deepmotion could provide Xiaomi with the necessary expertise and technology to bolster its foray into the electric vehicle sector.

Xiaomi’s Strategic Move

Reports indicate that Xiaomi is considering building its own car, viewing it as a strategic decision amidst its diversification efforts. While specific details regarding Xiaomi’s automotive venture are yet to be finalized, the company’s CEO, Lei Jun, is expected to directly oversee the project.

Lei Jun’s Interest in Electric Vehicles

Xiaomi’s CEO, Lei Jun, has previously demonstrated interest in the electric vehicle space. Lei Jun’s visits to the United States to meet with Tesla CEO Elon Musk back in 2013 suggest a longstanding intrigue in automotive innovation. Now, with Xiaomi’s potential expansion into electric vehicles, Lei Jun’s involvement could signal the company’s serious commitment to this new endeavor.

Diversification Amid Market Trends

The reported move towards electric vehicles comes amidst stagnation in the smartphone market, prompting Xiaomi to explore new avenues for growth. With the increasing popularity of electric smart vehicles globally, Xiaomi sees an opportunity to diversify its portfolio and tap into a burgeoning market segment.

Market Dynamics and Competitor Strategies

The Indian market, in particular, has witnessed a surge in demand for smart vehicles, with companies like Tata and Mahindra leading the charge in offering electric vehicle options. Additionally, tech giants like Huawei are also investing heavily in smart car technologies, with plans to allocate $1 billion towards this endeavor in 2021. Huawei’s investment underscores the broader trend of technology companies expanding into the automotive sector to enhance business resilience and capitalize on emerging market opportunities.

As Xiaomi explores the acquisition of Deepmotion and potentially ventures into the electric vehicle market, the tech industry eagerly anticipates how this strategic move will shape the future of both Xiaomi and the automotive landscape.