Several tech giants have dropped hints of developing a 'smart' car, including Huawei, Apple and now Xiaomi. Previously, Chinese company Huawei announced its partnership with Hicar and BAIC to produce a smart car. However, Xiaomi too, seems to have followed suit and is reportedly entering the market with its own electric car.

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According to a report published in iFengNews, numerous sources have mentioned the company's plan for its car, and have labelled it 'strategic'. However, details are awaited on this case, and the path of this development is yet to be determined.

Sources have also alleged that there are several angles to this expansion, and there's nothing 'set in stone' for the same.

The source further mentioned how the project is could be led by the smartphone maker's Founder and CEO, Lei Jun. The company is yet to respond to this claim.

Lei Jun had visited the US twice to meet with Tesla CEO Elon Musk in 2013 and has shown a growing interest in the field.

The report goes on to add how this decision was taken after Xiaomi's smartphone market faced stagnation. Apart from this, electric smart cars have also witnessed a spike in popularity. In India, the market is now observing a demand for electric vehicles, and auto companies like Tata, Mahindra — among others — are coming up with their products.

Apple, too, has been working on its version of the electric car, which will be built based on Hyundai's electric vehicle platform and the initial model could lead to new vehicles built in association with General Motors and European manufacturer PSA.

(With inputs from IANS)