Xiaomi, known in the electronics industry as the “Apple of Asia,” is venturing into the electric car business and is investing $10 billion in the process.

In an announcement last Tuesday, the Chinese giant claims that it will be putting said amount across the span of 10 years through a subsidiary whose focal point would be “smart electric vehicles.”

As per further company statement, the endeavor will be spearheaded by Xiaomi’s billionaire CEO, Lei Jun, and will require an initial investment of 10 billion yuan ($1.5 billion).

Related: Xiaomi products price list in the Philippines

Initially a smartphone maker, Xiaomi has eventually grown to expand its portfolio by venturing into other areas of technology, such as home appliances, electric-powered transport, accessories, etc.

As the China-based company enters a new market, it will face some stiff competition from some of the biggest brands in the automotive industry, like Tesla, General Motors, and Volkswagen, all of which being already well-entrenched in the electric cars enterprise.

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