China's Xiaomi stated on Tuesday that the company is going to start shipment of its first electric vehicle (EV), the SU7, this month, joining one of the world's largest car industries during a raging pricing war.

Highlights:

• Xiaomi introduces its first electric vehicle, the SU7, amidst China's competitive car market.
• The SU7 boasts advanced electric motor technology and shares an operating system with Xiaomi's devices.
• Xiaomi aims to expand beyond smartphones, investing $10 billion in autos over the next decade.

The smartphone manufacturer, China's fifth-largest, said in a Weibo tweet that it has 59 facilities in 29 locations around the nation that are willing to fulfill orders. A launch ceremony is set for March 28, when the new EV's sticker tag is likely to be revealed.

Xiaomi's stock rose 7% during morning trading.

China's EV sales increased by 18% in January-February, which is not far from the 21% growth forecast for the entire year 2023. This year has witnessed a wave of further price reduction driven by market leader BYD to entice consumers notwithstanding sluggish domestic demand.

Xiaomi Chief Executive Lei Jun stated at the introduction of the Speed Ultra 7 (SU7) car in December that the company aspires to be one of the world's top five automobile manufacturers.

According to Lei, the SU7 boasts "super electric motor" technology that can accelerate quicker than Tesla and Porsche EVs.

Analysts believe that the car's same operating system with Xiaomi's popular phones and other electronic gadgets will appeal to the company's current consumers.

Xiaomi has been aiming to diversify beyond its core business into EVs in response to stagnating smartphone demand, a goal it first revealed in 2021.

A unit of the state-owned manufacturer BAIC Group will produce its automobiles at a Beijing factory with a capacity of 200,000 vehicles per year.

The smartphone powerhouse has pledged to invest $10 billion in autos over the course of the next ten years, and it was one of the only competitors in China's EV market to obtain approval from authorities who are wary of contributing to a supply glut.