$XIAOMI-W(01810.HK)I. Key Event (2026-03-12 Bloomberg News)

Stellantis (parent company of Peugeot/Citroën/Fiat/Maserati) is in talks with Xiaomi regarding cooperation in its European business. The negotiations have been ongoing for several months, with no final agreement reached yet.

II. Core Issues Facing Stellantis (Why Negotiate)

• Pressure on European business profitability: High costs of electrification transition, overcapacity, impact from Chinese EVs, and intense competition.

• Strategic shift towards the Americas: Plans to scale back investment in Europe, introducing external capital/technology to reduce burdens.

• Lagging in electrification/intelligence: Urgently needs Chinese automakers' EV technology, software, and smart cockpit capabilities.

III. Key Negotiation Points (What's Being Discussed)

1. Chinese company investment: Xiaomi may invest in Stellantis's European operations or acquire partial stakes in brands like Maserati.

2. Capacity sharing: Chinese automakers using Stellantis's European factories for production to circumvent the EU's 30% high tariff on Chinese EVs.

3. Technology/resource exchange: Stellantis provides European channels, manufacturing, and compliance; Xiaomi provides electrification, intelligent technology, and capital.

IV. Xiaomi's Demands (Why Negotiate)

• Rapid European market entry: Bypass factory construction/compliance barriers, leverage Stellantis's network to access the market.

• Cost reduction and tax avoidance: Local production avoids high tariffs, improving competitiveness.

• Global expansion: With intense competition domestically, Europe is a key growth market.