Chinese smartphone maker Xiaomi is reportedly working on an electric car.
The announcenment comes after Chinese Government revealed a plan to allow new companies to enter into the electric vehicles sector.
Previously, non-auto makers in China were not allowed to enter into the electric car market, but the rules were changed in November when China's National Development and Reform Commission (NDRC) formulated a draft of new regulations, allowing non automakers to enter the vehicle market.
However, the new regulations are still under review and Xiaomi will have to wait until the rule is passed to develop its first electric vehicle.
Tech in Asia cited reports from Sina Tech claiming that Xiaomi VP Li Wanqiang is in Silicon Valley, home to other electric car makers including Tesla, and is working on a new product which could be the company's first electric car.
According to reports, the company could collaborate with Tesla to create its first car which could give a boost to Tesla's business in China.
