Xiaomi Auto's strategic adjustment and significant reduction in registered capital have attracted attention.

Recently, Xiaomi Jingming Technology, a subsidiary of Xiaomi Auto responsible for delivery operations, changed its name to Xiaomi Jingyu Technology and reduced its registered capital from 100 million yuan to 1 million yuan, a 100-fold decrease. This change has sparked speculation in the industry about whether Xiaomi Auto is facing financial difficulties or preparing to scale back its operations. However, according to analysts, this move is actually one of the strategic steps Xiaomi Auto is taking to transition from small-batch trial operations to nationwide large-scale delivery. By transferring high-risk businesses such as sales, delivery, registration, and service to a less asset-heavy subsidiary, Xiaomi Auto aims to separate production and sales, reduce the impact of potential risks on the parent company, and improve overall operational efficiency. Furthermore, this approach will also help Xiaomi Auto rapidly expand its stores and enhance its brand image nationwide.