Xiaomi's stock jumped more than 5%, the largest daily increase since May 12, after a company spokesman announced the date of the launch of its first electric cars.
A Xiaomi Corporation spokesperson on Tuesday quoted CEO Lee Jun that the Chinese smartphone maker will mass-produce its own cars in the first half of 2024.
Local media were the first to report these statements, which came during an investor event, and the company later confirmed them.
Zhang Ziyuan, director of global marketing at Xiaomi, also posted the news on his official Weibo account.
The date marks the next big target for the company's fledgling electric car division, which was officially announced by Xiaomi earlier this year.
Xiaomi shares jumped 5.4% to 22.50 Hong Kong dollars, the largest daily percentage increase since May 12, extending gains for the third consecutive session.
Xiaomi has not yet hinted at what kind of electric vehicles it will produce in the new business. Although the company will likely aim to produce affordable electric cars for its home country and other international markets.
Xiaomi said in March that it would commit to investing $10 billion in a new electric vehicle division over the next 10 years. The company completed the commercial registration of its electrical unit in late August.
Xiaomi has yet to say how this investment will be made. The company even bought self-driving technology startup Deepmotion for more than $77 million, and the acquisition is aimed at helping the company with its research and development efforts.
Xiaomi isn't the only technology company planning to take over the electric car market. Various reports have indicated that even Apple may be working on its own electric car.
Xiaomi has ramped up hiring for its auto unit, but has not yet revealed whether it will produce the cars independently or through a partnership with an existing automaker.
The electric car market in China is getting crowded, with new players entering. Chinese search giant Baidu launched a standalone electric car company last January, and in February it appointed its CEO
company.
When Xiaomi officially launches an electric car, it will face Chinese rivals like Nio and Xpeng as well as bigger automakers like Elon Musk's Tesla and BYD.
The electric car market in China has received favorable government support over the past few years which has helped the industry grow, and although some of this subsidy has been reduced, the market is still growing.
According to market research firm Canalys data, 1.9 million electric vehicles are expected to be sold in China in 2021, up 51% year-on-year.
New energy vehicle sales are expected to account for half of all vehicle sales in China in 2035, according to a roadmap issued by the sector last year.