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

China Evergrande, Evergrande Auto and Evergrande Property have jointly announced that they are in communication 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 responded that it wanted to sell some of Evergrande’s assets rather than the entire group. It was also confirmed that information on interested investors would 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 vehicle business. This was at the investment stage due to the acquisition of fixed assets and equipment, an increase in R&D and other related expenses and interest expense».

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

The source believes that Xiaomi will make several important announcements about this in the near future.