(Yicai Global) Aug. 12 -- Xiaomi’s electric vehicle unit will become a leading automaker by 2024, with testing of 140 self-driving vehicles already underway across China, according to the tech giant’s founder Lei Jun.

Xiaomi Auto may trail its rivals, but the achievements made in the 500 days since the Beijing-based automaker was set up are remarkable and far exceed expectations, Lei, who is also the EV unit’s chairman, said at a launch event yesterday.

Its Chinese competitors Nio and Xpeng Motors, both set up in 2014, have already begun vehicles shipments and gone public, as has Li Auto, which was founded in 2015.

The focus of Xiaomi’s smart EV business is autonomous driving, Lei pointed out. The firm decided to work on full-stack technology from the start, with a planned investment of CNY3.3 billion (USD490 million) for the self-driving technology’s first development phase, he said.

Xiaomi Auto’s autonomous driving team has 500 staff, Lei added, noting that after the acquisition of self-driving startup DeepMotion Tech, that is expected to exceed 600.

Xiaomi Auto’s advantage is its parent company’s excellent sales channels and supply chain resources, but the carmaker will still need long-term investment after vehicles are developed, an investor in the new energy vehicle field told Yicai Global.

Xiaomi revealed in March last year that it would set up a wholly owned smart EV unit, with investment of USD10 billion over 10 years. It signed an agreement with the Beijing Economic-Technological Development Area in November to build the unit’s headquarters and production base there.

Editors: Shi Yi, Futura Costaglione