Xiaomi acquires autonomous car firm Deepmotion at $77.37 million

• Chinese electronics giant Xiaomi acquires electric car manufacturer Deepmotion for around $77.37 million
• The Chinese electronics giant now competes with firms like Baidu and Huawei.

Chinese electronics giant Xiaomi obtains a self-sufficient driving start-up while expanding its business beyond initial smartphones.

Chinese electronics giant acquired Deepmotion for around $77.37 million to “enhance the technological competitiveness” of its electric vehicle business.

In March, Chinese electronics giant declared plans to launch an electric vehicle business and invest $10 billion over the next 10 years.

Xiaomi competition

The proceeds could help bring new autonomous driving features to the cars theChinese electronics giant ultimately produces.

Xiaomi’s electric and autonomous vehicle ambitions are against China’s other technology giants in what is becoming a more crowded space.

Chinese electronics giant now competes with firms like Baidu, Huawei, and carmakers like Tesla, Xpeng and Nio.

DeepMotion acquisition

Chinese electronics giant announced the Deepmotion acquisition after reporting financial results for the second quarter, saw revenue surge 64% year-on-year to 87.8 billion yuan ($13.5 billion).

TheChinese electronics giant said total revenue and adjusted net profit hit record highs in the quarter.

Smartphones accounted for 67.3% of total revenue. However, the company hopes electric vehicles can be a new revenue stream.