Lei Jun, CEO of Xiaomi, at the company's auto tech event in Beijing on Dec 28, 2023. (PROVIDED TO CHINA DAILY)

BEIJING - China's Xiaomi said on Tuesday it will start deliveries of its first electric vehicle (EV) model SU7 this month, venturing into the world's largest auto market.

The smartphone maker, China's fifth-largest, said in a Weibo post it has 59 stores in 29 cities nationwide that will take orders. A launch event is scheduled for March 28 when the new EV's sticker tag is expected to be announced.

Xiaomi's shares rallied 7 percent during morning trade.

The SU7, Lei Jun touted, has "super electric motor" technology capable of delivering acceleration speeds faster than Tesla and Porsche's EVs

China's EV sales climbed 18 percent in January-February, not too far off the 21 percent growth seen for all of 2023. This year has seen a round of deeper price cuts led by market leader BYD to woo consumers.

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At the unveiling of the Speed Ultra 7 (SU7) sedan in December, Chief Executive Lei Jun said Xiaomi plans to become one of the world's top five automakers.

The SU7, Lei touted, has "super electric motor" technology capable of delivering acceleration speeds faster than Tesla and Porsche's EVs.

Analysts say the car's shared operating system with Xiaomi's popular phones and other electronic devices will appeal to the company's existing customers.

READ MORE: Xiaomi says it will invest more in EVs; auto plan seen on track

Xiaomi has been seeking to diversify beyond its core business to EVs amid stagnating demand for smartphones - a plan it first flagged in 2021.

Its cars will be produced by a unit of state-owned automaker BAIC Group, in a Beijing factory with an annual capacity of 200,000 vehicles.

The smartphone giant has pledged to invest $10 billion in autos over a decade and is one of the few new players in China's EV market to gain approval from authorities.