Xiaomi Corp. Chief Executive Lei Jun said Tuesday that the company plans to mass produce its own cars in the first half of 2024.
Mr. Lei said at an investor event that Xiaomi's first vehicle factory will be located in Beijing. The new electric-car unit has added more than 450 hires to its research and development team, he added.
In March, the Chinese electronics maker joined a group of technology companies including Alibaba Group Holding Ltd., Tencent Holdings Ltd. and Baidu Inc. in drawing up plans to enter the world's largest electric-vehicle market. Xiaomi pledged to invest $10 billion over the next decade in the business.
Although Beijing wants the crowded Chinese EV sector to consolidate, analysts believe the country's EV market, with sales more than tripling in the first nine months compared with the same period last year, remains attractive to newcomers, including tech companies. They have mainly partnered with existing car makers instead of building vehicles on their own.
Mr. Lei said the progress made by Xiaomi's EV subsidiary has been faster than expected. But the company hasn't said whether it will produce cars independently or cooperate with established car makers. Xiaomi didn't immediately respond to a request for comment.
Last month, a Xiaomi-backed investment fund became the second-biggest shareholder of the EV battery unit of Ganfeng Lithium Co., the world's biggest lithium producer by market cap.
Xiaomi's Hong Kong-listed shares jumped 5.4% higher to close at HK$22.50.
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(END) Dow Jones Newswires