China’s Xiaomi said Tuesday that it will spend $10 billion over the next decade in a subsidiary dedicated to the “smart electric vehicle business”.
The company said in a stock market filing that the new unit will be headed by billionaire CEO Lei Jun. The initial investment will be worth 10 billion yuan ($1.5 billion), according to the company.
Xiaomi is among the world’s biggest smartphone makers which has also produced a range of gadgets including home security cameras, and toothbrushes, light bulbs, watches, scooters, and other items. The company did not provide more information on its strategy for entering the automotive industry.
In any case, Xiaomi will face plenty of competitors who are trying to produce electric vehicles at a large scale including Tesla, Volkswagen, General Motors, and others who are working for years to develop and sell electric cars.