Xiaomi fines supplier CNY1 million over leaky car designs
China’s Xiaomi on Thursday announced that it has imposed a fine of CNY 1 million (about Rs 1 crore) on a supplier after it leaked early design sketches of an upcoming car model.
On the official Weibo page, a spokesperson wrote that Xiaomi has “done serious business” with a Beijing-based company that develops mold technology. On January 22, the company publicly revealed images of the front and rear bumpers of a future car, in violation of a non-disclosure agreement.
Xiaomi has not disclosed the name of the company, and Reuters was unable to determine it.
As punishment, the smartphone and car maker would impose an “economic compensation” of CNY 1 million (approximately Rs 1 crore) on the supplier.
The spokesperson added that the supplier had been instructed to strengthen information security management and develop plans to improve confidentiality measures.
Xiaomi CEO Lei Jun also shared the letter on his personal Weibo page.
During the Chinese New Year, images of mock-ups of the front and rear of Xiaomi’s upcoming electric vehicle (EV) circulated on social media. A full-length image of what appeared to be a white compact sedan was also shown, with a license plate reading “MS11.”
The leaks are said to be the first confirmed images of Xiaomi’s highly anticipated car.
However, news portal Sina Tech reported on Thursday that Wang Hua, general manager of Xiaomi’s public relations department, said the leaked designs were part of a bidding process and were not final renderings.
In March 2021, Xiaomi, a hardware company best known for its smartphones, announced that it would enter the automotive sector and plan to invest $10 billion (approximately Rs 82,200 crore) in the project over 10 years.
Since then, the company has committed to opening a factory in Beijing, capable of producing 300,000 vehicles per year.
The company hopes to start mass production of its cars in the first half of 2024.
© Thomson Reuters 2023
