Xiaomi, based in Beijing and ranked as the world's fourth-largest smartphone manufacturer, is also a leading provider of tablets, smartwatches, headphones, and electric scooters.

In 2021, the company announced its plan to enter the electric vehicle market, following a trend where several major Chinese tech companies have shifted toward this highly competitive sector.

Xiaomi CEO Lei Jun took the stage in Beijing on Thursday to introduce the SU7, a sedan set to hit the market in 2025. The model is integrated with Xiaomi software, allowing functionality across the company's range of devices, and will be manufactured locally by BAIC.

“The goal is to become one of the world’s top five automotive manufacturers through 15 to 20 years of hard work,” Lei said.

The SU7’s batteries are to be supplied by China’s largest electric automaker BYD, as well as domestic battery giant CATL.

Many top tech firms in China — the world’s largest automotive market — have invested recently in the country’s EV sector, where foreign firms have struggled to take hold.

BYD was the undisputed leader of China’s EV market in November with more than 300,000 models sold, coming in far ahead of Tesla’s more than 80,000, according to figures from the China Association of Automobile Manufacturers.

Founded in 2010, Xiaomi has achieved rapid growth through its strategy of marketing high-end devices at affordable prices, which were initially sold directly through online channels.