China's Xiaomi to start first electric vehicle deliveries this month

At the unveiling of the SU7 in December, Chief Executive Lei Jun said Xiaomi planned to become one of the world's top five automakers. Lei said the SUV has "super electric motor" technology capable of delivering faster acceleration than Tesla's and Porsche's EVs.

Analysts say the car's shared operating system with Xiaomi's popular phones and other electronic devices will appeal to the company's existing customers.

"Xiaomi's cars are going from zero to one in a very different growth stage and facing very different user expectations compared to when Xiaomi's smartphones went from zero to one 14 years ago," Lei said in a Weibo post on Tuesday.

"Xiaomi's cars need to be different, and the most important aspect is smart technology." Xiaomi has been seeking to diversify beyond its core business to EVs as demand for smartphones is stagnant - a plan it first flagged in 2021. Its cars will be produced by a unit of state-owned automaker BAIC Group in a Beijing factory with an annual capacity of 200,000 vehicles.

The smartphone giant has pledged to invest $10 billion in autos over a decade and is one of the few new players in China's EV market to gain approval from authorities who have been reluctant to add to a supply glut.