China has been becoming a major reference in the automotive industry in recent years. It’s not just about BYD, which is gaining ground strongly on the roads, it’s about a much more well-known brand. Maybe we don’t associate it so much with the coach business, we’re more used to tapping on the products this brand creates. And just when we thought Xiaomi had done it all in the tech world, it surprises us once again. It seems this company has no limits. But this time it’s not about phones or accessories, it’s something much more ambitious. And no, it’s not chasing Tesla like many believed. Its new goal has wheels, but also a license plate… and it’s not just any plate. It is, literally, the key to conquering China, one of the most complex and competitive markets on the planet. What’s the move? We’ll tell you below.
Xiaomi’s bet
It’s no surprise that China is a real innovation lab in electric mobility. From innovating with electric batteries to government incentives aiming to make electric cars the new standard, the Asian country has left no stone unturned, and now, even license plates are playing a key role in this new strategy.
Lei Jun’s idea to update license plates
Lei Jun isn’t just the founder of Xiaomi, he’s also a congressman in the National People’s Congress, the body that drives legal reforms in China. And during the last session, he proposed a change that could alter the appearance and technology of millions of vehicles.
Lei Jun wants to eliminate the requirement for green license plates and replace them with smart plates. According to him, these new plates would allow for better traffic management and give users more freedom to personalize their vehicles.
Why do they want to move on from green license plates?
For something as simple as aesthetics. Lei Jun claims that in a market where vehicle designs are becoming more stylish and attractive, many users would prefer to choose the colour of their plates so they don’t clash with their cars.
What’s going on with license plates in China?
Getting a license plate in China is quite complicated. It’s not like in other places where, when you buy a car, you immediately pay for a plate that lets you drive as soon as the car is delivered. That’s not how it works in China. In cities like Shanghai or Beijing, plates are regulated through a lottery-like system and can have waiting lists that last for years to obtain a plate (only for internal combustion vehicles, the traditional ones).
What about electric vehicles?
No, that’s the key. Electric vehicles are given priority and can get “green license plates” almost free of charge and much more quickly. This strategy is part of the Chinese government’s efforts to reduce polluting emissions.
This is where Xiaomi’s strategy comes in, they intend to make it even easier for their buyers to get these plates, turning a process that seems complex into something as simple as buying a car.
Why do they want to change this?
China is the world’s largest emitter of pollution. Vehicle use alone produces over 800 million tons of CO2 per year, according to estimates from the Chinese Ministry of the Environment.
Of course, this level of pollution not only contributes to climate change, but also directly affects air quality in many Chinese cities, where toxic smog is still a serious problem that causes respiratory illness and harms the country’s health and nature.
The culture of personalization
It’s booming in China, almost like low-rise jeans in the 2000s. It’s not just about power and range anymore. Accessories being exclusive and visually defining one’s personal identity is becoming more important. Xiaomi has jumped on this trend, and that’s why Lei Jun has proposed a solution to an unexpected “problem”. Is it a strategy to connect with the TikTok crowd?
The proposal is on the table at the National People’s Congress and could set a new milestone in China’s electric market, and if it happens, it wouldn’t be surprising if other countries follow. After all, what we all want is a more sustainable world… and some of us have favourite colours!