Beijing, Nov 28 (IANS): Chinese electronics manufacturer Xiaomi is planning to build an automobile manufacturing plant in Beijing with an annual capacity of three lakh vehicles.

The announcement was made at a contract signing ceremony on Saturday between the company and the management committee of the Beijing Economic-Technological Development Area.

According to the agreement, Xiaomi will set up business headquarters, sales headquarters, and R&D headquarters for the automobile manufacturing base in the Development Area, reports Xinhua news agency.

The automobile factory will be constructed in two phases, with each having an annual production capacity of 150,000 vehicles. The first car is expected to roll off the production line in 2024.

The company said that it now has 300 employees and the business is led by the group's founder and CEO Lei Jun.

In March, the Beijing-headquartered firm announced plans to launch an electric car business and invest $10 billion over the next decade.

Xiaomi said its electric vehicle team has "conducted a massive amount of user research" in the last five months. It has also visited industry partners while "pressing ahead with the EV product definition and team formation," the report said.

The business has yet to unveil a car, it added.

Recently, Xiaomi announced it had acquired autonomous driving firm Deepmotion for around $77.37 million to "enhance the technological competitiveness" of its electric vehicle business.

Xiaomi, known for its smartphones and other internet-connected hardware, is jumping into an incredibly crowded space in China among start-ups like Nio and Xpeng as well as established players including Tesla and Warren Buffett-backed BYD, a Chinese automaker, as per the report.