The logo of Xiaomi is seen inside the company's office in Bengaluru, India, on Jan 18, 2018. (Photo: Agencies)

Chinese tech company Xiaomi Corp said on Tuesday that it plans to establish a smart electric car unit, with an initial investment of 10 billion yuan ($1.52 billion).

Lei Jun, chairman of Xiaomi, will become the CEO of the wholly-owned unit, and the company plans to invest $10 billion into the smart car business over the next 10 years.