Xiaomi has formally entered the automotive industry with a new smart electric vehicle (EV) business, the company announced in a filing on Tuesday. The firm will initially invest CNY 10 billion (approximately Rs 11,000 crore) in a wholly owned subsidiary with a total investment target of $ 10 billion (Rs 73,400 crore) over the next 10 years. The company said that Xiaomi CEO Lei Jun will also serve as the CEO of the smart electric vehicle unit.

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Xiaomi, who has entered the EV industry, follows similar footsteps of other tech giants both in China and abroad. In January, Chinese search giant Baidu Inc. announced that it would develop an EV unit in partnership with domestic carmaker Geely Automobile Holdings Limited.

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In February, Reuters reported that Chinese smartphone giant Huawei Technologies Co. Ltd. is currently in talks with state-owned automaker Chagan Automobiles and other companies to manufacture EVs.

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Last week, Reuters exclusively reported that Xiaomi was in talks to partner with Chinese automaker Great Wall Motor Company to help build EVs.

Xiaomi declined to comment on the report, while Great Wall said in an exchange filing that it had not discussed such a partnership with Xiaomi.

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