Beijing (ZXZC)- Xiaomi’s auto business will be headquartered in Beijing where it will set up its first factory, according to local media outlet Auto Business Review.

Photo credit: Xiaomi

At the end of March this year, the smart phone maker announced it will set up a subsidiary for smart electric vehicle business. The initial investment of the new company will be RMB10 billion while the total investment in the next 10 years will be around $10 billion. Lei Jun, CEO of the group, will serve as the CEO of the electric vehicle business.

Since the announcement of its foray into the electric vehicle industry, Xiaomi’s headquarters and factory location have attracted much attention. It is said that Beijing, Shanghai, Wuhan, Hefei and Xi’an all are wooing Xiao’s auto business. And in the past four months, Lei Jun also visited numerous automakers and suppliers, such as Changan, GAC Group, SAIC GM Wuling, Great Wall Motor, CATL and Bosch.

Xiaomi’s headquarters are located in Beijing. The Xiaomi Technology Campus, in Haidian District of Beijing, covers an area of 220,000 square meters with an investment of about RMB2 billion. In addition, Xiaomi also has a smart factory in Yizhuang of Beijing. In June and July, Xiaomi posted more than 20 new positions which are related to autonomous driving, and all the staff for the above positions are expected to work in Haidian District.