Xiaomi said Wednesday it had acquired Deepmotion for around $77.37 million to “enhance the technological competitiveness” of its electric vehicle business.
In March, Xiaomi announced plans to launch an electric vehicle business and invest $10 billion over the next 10 years.
The acquisition could help bring autonomous driving features to the cars Xiaomi eventually produces, a feature being developed by many automakers for next-generation electric vehicles.
The company announced the Deepmotion acquisition after reporting financial results for the second quarter which saw revenue surge 64% year-on-year to 87.8 billion yuan ($13.5 billion). Xiaomi said total revenue and adjusted net profit hit record highs in the quarter.
Smartphones accounted for 67.3% of total revenue but the company has looked to reduce its reliance on mobile phones by pushing into other internet-connected devices. The company hopes electric vehicles can be a new revenue stream.
