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Xiaomi chairman and CEO Lei Jun announced the company's plan to spend a total of US$10 billion on the EV business over the next decade during the company's event Tuesday. (provided by Xiaomi)

Chinese company Xiaomi has officially announced plans to produce electric vehicles (EV), following a similar announcement by Apple, suggesting that more smartphone companies are moving into the automotive industry.

Xiaomi said Tuesday that it has officially launched a project to produce "smart electric vehicles." Its EV project will be handled by a subsidiary wholly owned by Xiaomi, under Xiaomi chairman and CEO Lei Jun's oversight.

Xiaomi said it plans to spend a total of US$10 billion on the EV business over the next ten years.

"The decision was made after numerous rounds of deliberation among all our partners," Lei said Tuesday during an event in which Xiaomi announced new products for the spring season.

"I am willing to put all my personal reputation on the line and fight for the future of our smart electric vehicle," Lei added.

Xiaomi is expected to try to manufacture automobiles itself. While Lei didn't unveil any specific business plans Tuesday, he did say in an email to company executives and staff that Xiaomi has clear and unique advantages when it comes to manufacturing cars. That suggests the company is looking into making its own cars.

Xiaomi's announcement is presumably motivated by the belief that the automotive industry will develop along similar lines as the smartphone industry. The use of the term "smart electric vehicle" is also notable.

In his email to staff, Lei noted that Xiaomi has a profound understanding of a hardware-based internet service business model. He also mentioned the companies wide-ranging experience with software and hardware integration.

Furthermore, Xiaomi seems to think that it can strengthen its existing ecosystem by adding automobiles to its product lineup.

There have been recent indications that smartphone companies are stepping up efforts to expand into the automotive industry. That's based on the belief that, as self-driving cars and EVs go mainstream, cars will become a sort of smart device.

There are also hopes that building a single ecosystem encompassing everything from smartphones to automobiles will produce even greater synergy. Apple and Xiaomi are regarded as some of the leading companies pursuing that kind of walled garden. Apple has also recently negotiated with automakers, including the Hyundai Motor Group, to produce EVs.

By Lee Jae-yeon, staff reporter

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