(Yicai Global) Feb. 10 -- Xiaomi founder Lei Jun said it is not too late for the Chinese tech firm to begin mass producing vehicles next year and it will strive to be among the world's top five carmakers in the next 15 to 20 years.

Next year will be the right time to launch new energy vehicle models as Xiaomi has advantages in user experience and electronic technologies compared with rivals that entered the sector years ago, Lei said at the Beijing-based company’s 2022-2023 investor day this week.

Xiaomi invested more than CNY3 billion (USD440.5 million) in the auto and other new businesses last year, with early-stage spending reaching over three times the amount spent by other carmakers, he noted, adding that a development team of more than 2,300 people had been assembled.

Xiaomi's first soft-molding vehicle rolled off the production line as scheduled last September, and winter testing started in December.

Software profit is more crucial than hardware profit in the long run for Xiaomi vehicles, just as with the cellphone business, Lei said.

Lei currently devotes half of his time to the car business, he said, with a quarter spent on cellphones, the internet of things, and high-end strategies, and the rest on other businesses.

“I hope one day we can connect our cellphone, vehicle and smart household supplies,” Lei said. “We haven’t ruled out the possibility of mergers and acquisitions with some good firms, but we’ll also consider prudent operation.”

Lei did not directly answer questions about whether Xiaomi's vehicle business has a separate financing plan. 

Editor: Tom Litting