Xiaomi Corp has won the approval of China's state planner to manufacture electric vehicles (EVs), said two people with knowledge of the matter, marking a major step towards the smartphone maker's goal of producing cars by early next year.
Reuters was not immediately able to determine why NDRC granted approval to Xiaomi. Its EV plant has been marked by the Beijing municipal government as an important industrial upgrade project.
While it awaited the approvals, Xiaomi has forged ahead on the venture, completing construction of factory facilities capable of producing 200,000 EVs annually in Beijing, according to a report in state-run newspaper Beijing Daily in July. Chinese factories, including those making combustion engine cars, were capable of producing 43 million units annually at the end of 2022, but their utilisation rate was just 54.5%, down from 66.6% in 2017, China Passenger Car Association data showed.
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