Report: Chinese Cell Phone Maker May Enter EV Market

Chinese smartphone maker Xiaomi Inc. reveals in a regulatory filing in India it may sell “all types of vehicles” there, the Financial Times reports.

Social media in China are interpreting the application as a signal the company may be preparing to develop its own electric vehicle. Xiaomi founder Lei Jun raised that possibility in 2015, indicating such a vehicle could debut 3-5 years from then.

A company source tells FT the company currently has no such vehicle under development. But Xiaomi, which began as a tech startup, now produces a wide array of internet-connected consumers goods from cell phones to rice cookers.

FT notes that Chinese consumers are especially enamored with all things connected, particularly their cars. The newspaper cites a McKinsey survey released in November that reports 64% of Chinese respondents say they would switch car brands to get better in-vehicle connectivity. That proportion compares with 37% of Americans and 19% of Germans.

Other Chinese tech companies are developing mobility services, connectivity platforms and autonomous driving technology. But FT says Xiaomi is the first of the group to signal interest in producing entire vehicles.