Xiaomi CEO Reacts with Shock to Apple's EV Project Shutdown, Pledges Continued Development

Unlike China's ambitious EV competitors, Apple's decision to abandon its plan to manufacture electric vehicles has sparked debate among the founders of Xiaomi, Li Auto, and Xpeng.

Xiaomi CEO Lei Taken Aback By Apple's EV Exit, Maintained Commitment

Weibo post on Wednesday by Lei Jun, founder and chairman of leading Chinese smartphone manufacturer Xiaomi, which debuted its first vehicle late last year, expressed "extreme shock" at Apple's withdrawal from the EV sector.

The tech magnate, who has spent considerable time attempting to establish himself as the nation's Steve Jobs, stated that he completely understands how challenging it is to manufacture automobiles. However, he further stated that Xiaomi has made an "unshakeable strategic decision" and is devoted to developing electric vehicles.

Xiaomi, which ranks third globally in smartphone shipments, declared its foray into the electric vehicle (EV) industry in 2021, as per SCMP.

According to Lei, the Beijing-based company debuted its first electric vehicle, the SU7, in December after spending more than 10 billion yuan (approximately US$1.4 billion) on a prototype developed by 3,400 engineers.

Xiaomi had previously stated that the SU7 would undergo a few additional months of testing before its sale. Tuesday's news broke that Apple was winding down Project Titan, its decade-long endeavor to develop an autonomous vehicle, to reallocate resources to more pressing enterprises.

According to a report by Bloomberg, Apple intends to transfer a portion of its 2,000 employees from the automobile venture to its artificial intelligence (AI) division. They will focus on mixed reality and generative AI, which are becoming increasingly vital to Apple, which introduced the Vision Pro headset earlier this month.

The CEO of Beijing-based EV manufacturer Li Auto, Li Xiang, stated that Apple's decision is "absolutely right." In recent years, Chinese brands have experienced significant growth in the electric vehicle (EV) industry. Last quarter, BYD, a company headquartered in Shenzhen, surpassed Elon Musk's Tesla as the leading EV manufacturer globally.

Li Auto, an additional significant Chinese competitor to Tesla, disclosed a quarterly profit record in the previous period, with net income doubling from the corresponding period in September to attain 5.75 billion yuan. Despite this, the organization foresees a decline in revenue for the current quarter due to the sluggish economy.

He Xiaopeng, chairman of Xpeng, a carmaker based in Guangdong, expressed his skepticism on Wednesday on Weibo regarding Apple's decision to withdraw from the electric vehicle (EV) sector. He predicted the industry would be highly competitive this year when most newcomers are expected to introduce their products.

Xpeng anticipates recruiting 4,000 additional personnel this year as it implements a strategic plan to introduce 30 new models within the subsequent three years.

After a Decade, Apple Pulls the Plug on Its Autonomous Vehicle Project

Apple decided this week, after a decade of developing an autonomous vehicle, that it was time to perform an AirPower and terminate the project. Apple has discontinued the Apple Car and has no further plans to introduce an electric vehicle bearing the Apple brand.

Hundreds of engineers and automobile specialists contributing to the vehicle's development will be laid off or reallocated to other Apple teams, including the AI team. As the Apple Car rumor has persisted for an extended period without a tangible product materializing, we figured it would be insightful to examine some of the most significant junctures in its history to shed light on what went awry.

Apple Car rumors intensified in 2022 following the publication of an article by The Information claiming the company was developing a vehicle with four inwardly facing seats, a curved ceiling, and large, movable seatback displays. Discussion surrounded an automobile devoid of both a steering wheel and pedals.

According to the same report, Apple's self-driving technology was deficient, as evidenced by the company's SUVs colliding with curbs, losing control of their lanes, and having difficulty navigating streets. Reportedly, one vehicle came perilously close to colliding with an individual.

Bloomberg reported late in 2022 that Apple had once more shelved its plans for a fully autonomous vehicle in favor of a highway-capable self-driving mode. It was noted that Apple was preparing to introduce an Apple Car in 2026, a scaled-down version of the vehicle.

It was reported that the vehicle, which lacked a steering column in an imaginative fashion, featured a more conventional appearance and was priced at approximately $100,000.

The "Apple Car" ceased to be the subject of rumors in 2023, and there was little discussion throughout the year. Apple analyst Ming-Chi Kuo said the project had "lost all visibility" in September 2023. He cautioned that in the absence of an acquisition, Apple would be unable to manufacture a vehicle in the coming years.

Bloomberg reported in January 2024 that Apple had once more scaled back the design of the Apple Car, abandoning plans for more advanced autonomous functionality. Apple's aspiration for the vehicle to autonomously navigate highways was deemed excessively ambitious. Conversely, Apple opted for driver-assistance functionalities like those in Tesla automobiles, namely steering and brake/acceleration support.

Apple initially had a 2026 launch target, but due to modifications to the new project, that date was moved back to 2028. Bloomberg cautioned that executives might abandon the project if Apple determined it could not produce an electric vehicle with this comparatively restricted feature set.

A month after that report was published, Apple executives abandoned the Apple Car in favor of AI. Certain employees affiliated with Apple Car will transition to the generative AI team at Apple, whereas others will face layoffs or be required to submit job applications internally.

The "Apple Car" currently joins the AirPower charging mat, which was shelved in 2019, and the Apple TV set, which had been speculated for years before its cancellation in 2014.

Photo: Xiaomi/YouTube Screenshot