's automotive business has big ambitions, with plans to launch its first model in the first half of 2024 and a new car in each of the following three years, 36kr.com said Friday, citing people familiar with the matter.

Xiaomi is aiming for total sales of 900,000 units in those three years, the report said.

In recent months, Xiaomi has been talking with a parts giant and disclosed initial plans for its car business, according to the report.

Today's new energy industry landscape is no longer friendly to new entrants, with leading companies including , and having established brand recognition and significant capital support. And traditional car companies are transforming themselves by launching independent sub-brands to compete.

Citing industry sources with access to Xiaomi founder Lei Jun, the report said Lei realized that competition would be fierce when Xiaomi launches its first car, so he decided to enter the market with a 10 percent BOM (bill of materials) loss.

On March 30, Xiaomi announced on the Hong Kong Stock Exchange that it plans to set up a wholly-owned subsidiary to handle its smart electric vehicle business.

Xiaomi's initial investment in the automotive business is RMB 10 billion, with an expected investment of $10 billion over the next 10 years.

Xiaomi's automotive business officially completed its company registration in China on September 1 with a registered capital of RMB 10 billion ($1.5 billion).

The company is called Xiaomi Automobile Co and Lei serves as its legal representative.

In the past five months since announcing it was joining the car-making bandwagon, Xiaomi has built up a team of nearly 300 people for its car business, the company said.

Xiaomi's car team has conducted a lot of user research and industry chain visits and is pressing ahead with product definition, Xiaomi said.

Xiaomi's auto business officially incorporates