Xei to build 300,000 vehicles a year for its electric vehicle unit

The Chinese smartphone giant Xiaomi Corp is expected to build a plant that can produce 300,000 vehicles annually in Beijing for its electric vehicle unit, authorities in the capital said on Saturday.

The plant will be built in two phases and the auto unit's headquarters, sales and research offices and offices will be built in the Beijing Economic and Technological Development Zone, the government-backed economic development agency Beijing E-Town said on its official WeChat account.

In October, Beijing E-Town said it anticipated the plant reaching mass production in 2024, a goal announced by Xiaomi's Chief Executive Lei Jun.

In March, Xiaomi announced it would commit to investing $10 billion in a new electric car division over the next 10 years. The company completed the business registration of its EV unit in late August.

The company plans to sell electric vehicles after opening thousands of stores to spur domestic sales growth for its mobile business, but eventually intends to use these shops as a channel for its plans to sell electric vehicles.