Consumer electronics and automotive manufacturing are beginning to converge as technology firms pivot towards electric mobility.
These companies are leveraging their established capabilities in software development and battery technology to enter a market that shares similarities with their core business.
Smartphones and electric vehicles (EVs) have a lot in common, with software-defined architectures, rapid technological developments and a fundamental reliance on lithium-ion chemistry.
The International Data Corporation projects that worldwide smartphone shipments may decline by almost 1% in 2026, so tech manufacturers could be exploring alternative growth opportunities.
Xiaomi’s automotive venture
Smartphone and hardware manufacturer Xiaomi has established an Auto subsidiary that combines industrial manufacturing with smart software and artificial intelligence, aiming to “redefine the automotive industry”.
The SU7, Xiaomi’s first motor vehicle, launched in 2024 with a maximum speed of 265 km/h.
The vehicle incorporates Xiaomi HyperOS, enabling it to operate as an extension of users’ smartphones and smart home ecosystems.
On the debut of the car in 2023, Lei Jun, Founder, Chairman and CEO of Xiaomi Group, said: “Xiaomi has decided to invest tenfold, starting from the development of fundamental core technologies, committing to constructing an outstanding vehicle.
