Xiaomi wants to buy most of the Evergrande Group's electric vehicle division

Chinese investment holding China Evergrande Group is in talks with Xiaomi to sell 65% of its electric vehicle division. The source said that negotiations are still at an early stage.


China Evergrande, Evergrande Auto, and Evergrande Property have jointly announced that they are communicating with several potential independent third-party investors to discuss the sale of some of the company's assets, including but not limited to the sale of China Evergrande New Energy Automobile Group Co., Ltd. and Evergrande Property Group Co., Ltd. Subsequently, Evergrande Auto replied that they wanted to sell part of Evergrande's assets and not the entire group. It was also confirmed that information on interested investors will be announced shortly.


As of June 30, Evergrande Automobile had a net loss of $ 740 million. The net loss for the same period in 2020 was about $ 380 million. In this regard, Evergrande Motor explained: “The net loss in the first half of the year is mainly due to the expansion of the new energy car business. It was at the stage of investment due to the acquisition of fixed assets and equipment, increased R&D, and other related costs and interest costs. "


It has been over 5 months since Xiaomi announced the creation of an automotive division. After that, the head of the company, Lei Jun, visited many Chinese car companies, including Changan, GAC, SAIC-GM-Wuling, Great Wall, SAIC, Dongfeng, Bosch, CATL, and others.


The source believes that Xiaomi will make some important announcements in the near future.

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