Chinese technology giant Xiaomi has announced plans to commence deliveries of its inaugural electric vehicle (EV) this month, marking its debut in the fiercely competitive automotive sector.

The pricing details of the car are slated for release on March 28th. With 59 stores spread across 29 cities in China, the country’s fifth-largest smartphone manufacturer is primed to accept orders. This move comes amidst an escalating price rivalry between major players such as BYD and Tesla within China, the largest automobile market globally.

At the unveiling of the Speed Ultra 7 (SU7) last year, Xiaomi’s CEO, Lei Jun, articulated the company’s ambition to secure a position among the top five car manufacturers worldwide. The tech behemoth has committed a hefty $10 billion (£7.8 billion) investment in its automotive venture over the next decade. According to Mr. Lei, the SU7 features “super electric motor” technology, enabling acceleration surpassing certain Tesla and Porsche EV models.

Xiaomi is banking on the appeal of a shared operating system between its cars, smartphones, and other devices to entice its existing customer base. As one of the select newcomers to China’s electric car arena to receive regulatory approval, Xiaomi aims to navigate through the influx of fresh market contenders. The SU7 will be manufactured by a subsidiary of the state-owned BAIC Group at a Beijing facility capable of churning out up to 200,000 vehicles annually.

The introduction of the Xiaomi Automobile coincides with fierce pricing competition in China’s EV landscape. Tesla, spearheaded by billionaire entrepreneur Elon Musk, has substantially slashed prices for its cars in China in recent months, mirroring moves by local rivals like BYD. Following today’s announcement, Xiaomi’s shares surged by over 10% in Hong Kong.