According to The Indian Express, Xiaomi has officially confirmed that it will be entering the smart electric vehicle business, which doesn’t come as a surprise, given how wide Xiaomi’s portfolio of products is. The company has revealed that it is setting up a new subsidiary to work on electric vehicles and related business.

Xiaomi plans to invest about 10 billion yuan (about $1.5 billion) over a period of 10 years. Lei Jun, the CEO of Xiaomi, will also be serving as the CEO of the new smart electric vehicles entity.

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“The board of directors of the company has resolved to commence the electric vehicle business. The company will set up a wholly-owned subsidiary to operate the smart electric vehicle business. The initial phase of investment will be RMB 10 billion, with the total investment amount over the course of the next 10 years estimated to be $10 billion. Mr Lei Jun, the Chief Operating Officer of the group will concurrently serve as the Chief Operating Officer of the smart electric vehicle business,” the company said in an announcement.

A Xiaomi-branded electric vehicle may not be an immediate possibility anytime soon. Jun had recently confirmed at the fifteenth annual meeting of the China Entrepreneurs Forum that Xiaomi has no plans to release an electric vehicle for the next three to five years. Xiaomi also is expected to partner with China’s Great Wall Motor Co Ltd and use the brand’s factory for building its own electric cars.

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