Chinese smartphone vendor Xiaomi plans to launch its first electric vehicle at the end of 2023, joining a number of Chinese tech companies competing in China’s highly competitive electric vehicle market.

The midsize sedan could be set the price at the same level as Tesla’s Model 3, which priced between 260,000 yuan (US$37,900) and 300,000 yuan.

The car, which will equip with Lidar sensors, intelligent cockpit and Nvidia Orin chips, will be powered by BYD’s lithium iron phosphate battery packs.

The entry barrier of EVs is much lower compared to petrol cars. As the development of electric vehicle progress, the competition is going to be brutal.” Lei said in a statement posted on Chinese microblogging site Weibo.

To give one proof of this, Lei highlighted that the cost of batteries has dropped by 80 per cent in the past 10 years.

Lei refereed EVs as a form of consumer electronic, “auto industry will evolve from mechanics to consumer electronics.”

In order for Xiaomi to become one of the top 5 global players, the company will have to ship more than 10 million cars annually, Lei stressed.

Xiaomi unveiled its plan to build EVs in March 2021, hoping to copy its success in smartphone sector with cars and use the technology that made its smartphones so popular among consumers

Previously, Lei Jun said Xiaomi will mass produce its own electric vehicle in the first half of 2024. In March 2021, Xiaomi joined its peers such as Baidu into the electric car race after it announced to launch an electric vehicle business unit and invest USD10 billion into it over the next 10 years. Then in September 2021, Xiaomi has completed the official business registration of its electric vehicle unit, the headquarter will locate at Beijing Econmic-Technological Development Area commonly known as Beijing’s Yizhuang new town.

Xiaomi’s plant, its auto unit’s headquarters, as well as sales and research offices will locate at Beijing Econmic-Technological Development Area. The car factory will be constructed in two phases and it is expected to reach mass production in 2024.