Chinese smartphone maker Xiaomi Corp XIACF XIACY has formally registered its electric vehicle unit, which it says has entered a “substantial development phase,” CNBC reported on Wednesday.
What Happened: The subsidiary is named Xiaomi EV Inc and was registered with a capital of RMB 10 billion ($1.55 billion). Xiaomi had said in March it planned to spend a total of $10 billion over the next 10 years in the electric vehicle business.
Xiaomi EV will be led by the group’s founder and CEO Lei Jun and now has 300 employees, CNBC noted.
The Beijing-based Xiaomi had last month said it acquired autonomous driving firm Deepmotion for around $77.37 million to boost the technological competitiveness of its electric vehicle business.
See Also: Smartphone Maker Xiaomi Confirms EV Venture, Plans $10B Investment Over 10 Years
Why It Matters: The maker of smartphones is foraying into an already crowded space where homegrown players such as Nio Inc NIO, Xpeng Inc. XPEV, Li Auto LI and BYD Co BYDDF already have a substantial lead.
Elon Musk-led Tesla Inc TSLA has also established a firm footing in the Chinese electric vehicle market.
Price Action: Xiaomi shares closed 1.23% lower at $3.20 on Tuesday.
Xiaomi wouldn't be the only smartphone maker looking to enter the auto sector if Apple Inc's AAPL reported plans to make self-driving electric vehicles see daylight.
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