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According to the previous report of Future Automobile Daily, it was learned exclusively from Anhui high-tech industry and investment sources and other independent sources that Anhui SASAC is in contact with Xiaomi Automobile and intends to introduce Xiaomi Automobile to Hefei. In addition, the media reported that Jianghuai Automobile or OEM for Xiaomi Automobile, the first model is likely to focus on the market of less than 200000 yuan, and will layout the power exchange business.

In response to the relevant reports, Jianghuai Automobile issued a clarification notice: verified by the company, Jianghuai or millet OEM reports are not true. So far, the company has not discussed with Xiaomi about co-building cars, nor has it reached any intention to build cars together.

According to previous reports, Xiaomi Group officially announced its entry into the car manufacturing field on March 30 this year. Xiaomi Group plans to set up a wholly owned subsidiary to take charge of the smart electric vehicle business; the initial investment is 10 billion yuan. It is expected that the investment will be 10 billion US dollars over the next 10 years. Lei Jun, CEO of Xiaomi Group, will also serve as CEO of the smart electric vehicle business.

Since Xiaomi announced the construction of the car, Lei Jun frequently went in and out of various mainframe factories to communicate with Changan, SAIC, Guangzhou Automobile, Great Wall and other car companies. Since June, Xiaomi's official website has been recruiting talents related to the automotive industry, including autopilot engineers, motor development engineers, high-voltage system simulation and design engineers, power integration experts, car body architecture experts, vehicle general layout experts, etc., working in Haidian District of Beijing and Xuhui District of Shanghai. On July 28, Lei Jun, chairman of Xiaomi Group, announced through Weibo that Xiaomi launched the recruitment of its self-driving department, recruiting the first batch of 500 self-driving technicians. There are signs that Xiaomi car building is still in the stage of building a team and preparing to build a car.

In fact, there are only two ways in front of Xiaomi, either to build their own factories to produce and sell themselves, or to contract through other car companies. If Xiaomi wants to build its own factory to achieve self-production and self-sale, it needs to obtain production qualification, and the current national control on the production qualification of pure electric passenger cars is very strict, so it is very difficult for Xiaomi to obtain production qualification on its own. then the only quick way is to achieve mass production through the acquisition of qualified car companies, which can be done with reference to Xiaopeng Automobile acquisition of Fudi and Zero acquisition of New Foda. The other is to choose contract manufacturing, which is also a common way for the new forces of car building at present, which can achieve the purpose of mass production through cooperation with traditional car companies. in this way, we can refer to the seahorse for Xiaopeng OEM, Jianghuai OEM for Wei, the Yangtze River for Zero OEM, and so on.

From the perspective of Xiaomi Group's funds, it can achieve mass production through the acquisition of qualified car companies, which can not only reduce costs, but also improve product quality. However, Xiaomi Group does not have much experience in building cars, and even if it has production qualifications, it is obviously not realistic to fully master the production line, and it is not easy to gain a foothold in the field of car manufacturing. this malpractice can be solved by OEM, of course, the product cost will also increase, and the product quality can not be monitored in real time.

In fact, the general view in the industry is that OEM is indeed a good business for car brands with relatively weak brands. The capacity utilization rate of models with weak brand power is very low, because it is difficult to share the cost because there are few cars produced, and it is difficult to recover investment such as the previous production line, while OEM can accelerate investment recovery, improve capacity utilization and generate revenue at the same time. As for whether Xiaomi cars will choose to build their own factories or cooperate with car companies to produce their own products, it is also worth paying attention to.

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