Xiaomi expands size of second factory

Agencies

Xiaomi (1810) is expanding the size of a planned second electric car factory in Beijing, a source said, after the success of its first model prompted billionaire co-founder Lei Jun to raise this year's sales target to 350,000 vehicles.

The company, better known for its smartphones, started construction of a second factory last year on a 53 hectare plot of land in the capital's Yizhuang district that it bought for 842 million yuan (HK$904.7 million). Production at that facility is set to start mid-year.

The latest expansion will see the facility incorporate an adjoining plot of 52 hectares.

Xiaomi's first factory has a designed annual production capacity of around 150,000 vehicles, though the company has taken measures including optimizing workflow to boost output to help fill a backlog of orders.

The plan comes as Xiaomi's SU7 electric sedan and its Ultra race car version prove popular with buyers, shipping more than 200,000 units in less than a year.

This came as the Financial Times said China is delaying the approval for BYD (1211) to build a plant in Mexico over concerns that the technology developed by the electric vehicle maker could leak to the United States.

Separately, Leapmotor (9863) said it has started selling two EV models at Stellantis dealerships in Britain via its joint venture with the world's No 4 automaker.

Leapmotor has launched sales of the T03 compact electric car and the C10, a large electric SUV, with the B10 midsize SUV launching later this year, at 44 Stellantis dealerships.