Chinese company Xiaomi has announced plans to invest US$10 billion in smart electric vehicles over the course of 10 years.

Lei Jun, its founder, chairman and CEO, said the business would operate under a wholly-owned subsidiary with an initial investment of RMB10 billion ($1.5 billion).

He will also be CEO of the smart electric vehicle business.

Smart electric vehicles have transformed the business model of the traditional automotive industry, and Xiaomi has the deepest understanding of the hardware-based internet service business model, Lai said.

“Smart electric vehicles represent one of the largest business opportunities in the next decade and represent an indispensable component of smart living. Entering this business is a natural choice for us as we expand our smart AIoT eco-system.”

Meanwhile, the company recently announced the adoption of a new logo with the design concept “Alive”. It was created by, Prof Kenya Hara of the Musashino Art University in Japan.

Xiaomi’s global smartphone shipments reached 146 million last year, which made it one of the world’s top three. The sales of premium smartphones exceeded 10 million units.

With over 324.8 million connected devices on Xiaomi’s AIoT platform and 86.7 million monthly active users of XiaoAi AI Assistant, it is the leader in the smart home industry. — VNS