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Xiaomi, the third largest smartphone brand in the world, was popularly known as the Apple of China. Lei Jun, the former CEO of Kingsoft, founded Xiaomi in 2010. Xiaomi's diversification strategy had provided exceptional growth to the company. By 2016, Xiaomi had invested in most diverse companies manufacturing products ranging from power banks to air purifiers. After successfully capturing market for smartphone, laptops and other consumer goods, Xiaomi had yet again announced its plans to enter the smart mobility landscape. In 2020, Xiaomi announced its entry into the electric vehicle (EV) business to capture the world's largest car market, China. It planned to invest close to RMB 10 billion in initial investment to set up a wholly owned subsidiary and spend USD10 billion over the course of the next decade. However, despite market potential, experts claimed that entering EV was not as easy as assembling smartphones and presented unique sets of challenges for Xiaomi in terms of technological complexity, business model and supply network ecosystem. In addition, competition was heating up in China's EV market, which was already crowded with a number of local EV companies, while several foreign brand and tech giants were also eyeing the booming EV market. Whether Xiaomi would win the EV race amid challenges?