China - December 05, 2024 Chinese EV upstart Xiaomi drives forward with focus on supply chain efficiency (Stand_up) Bi Ran, Reporter: "Behind me is Xiaomi’s giga factory in Beijing." (Voice_over) The facility spans approximately 720,000 square meters, equivalent to about 100 football fields. It includes all essential automotive production processes, including stamping, casting, body welding, painting, battery assembly, and final assembly. With bold ambitions to integrate cutting-edge technology into electric vehicles, now the company is driving forward with a focus on developing a comprehensive supply chain to support its goals. (Sound_bite) Kevin Chen, Head, Supply Chain Operations, Xiaomi Technology: "Efficiency is the key word here. We look at the efficiency of our entire supply chain, from raw material procurement, to the processing of raw materials, to logistics, to vehicle production and ultimately to our customer services. We look at the efficiencies of not only our very direct suppliers, but also then of our indirect suppliers - meaning the suppliers of our suppliers." (Voice_over) Now, Xiaomi’s suppliers include top players like Bosch, BYD, and CATL. Its emphasis is on creating a seamless supply chain. Xiaomi Auto's strategy is not limited to production alone. The company is investing heavily in research and development, aiming to integrate artificial intelligence, IoT connectivity, and energy-efficient solutions into its vehicles. Industry experts believe this could set Xiaomi apart in the competitive NEV market. (Sound_bite) Kevin Chen, Head, Supply Chain Operations, Xiaomi Technology: "We put a lot of efforts into building strategic partnerships with key suppliers, say battery technology or sensor development. So there are two ways we have these strategic partnerships. One way is that, we are a tech company at heart, so we invest very heavily into frontier technology research and development alongside with our partners. Another way we do that is we also believe that it is important to align our interests with those of our key suppliers. We have become one of the top investors in some of our key component suppliers." (Sound_bite) Zhang Baohua, Director, Vehicle manufacturing unit, Xiaomi Technology: "Xiaomi’s strength lies in its ability to scale and innovate quickly. It applied its smartphone ecosystem model to the NEV industry, like the philosophy of building entire industrial chains and supplier partnerships." (Voice_over) As the NEV market heats up, all eyes are on Xiaomi Auto. With its unique approach to integrating technology and building a strong supply chain, the company might redefine the way we think about electric vehicles. [Restriction: No access Chinese mainland]