Chinese technology giant Xiaomi plans to start deliveries of its first electric vehicle (EV) in March — its first ever foray into the competitive automotive industry, according to BBC News, with the car's price expected to be announced on March 28.

Xiaomi, which is the fifth-largest smartphone maker in China, says it has 59 stores in 29 cities, ready to take orders. The announcement comes as a price war intensifies between EV makers such as BYD and Tesla in China, the world's biggest car market.

The smartphone giant has said it will invest $10 billion in its vehicles business over the next 10 years.

Tesla, which is headed by multi-billionaire Elon Musk, has cut the cost of its cars in China by thousands of dollars in recent months as local rivals like BYD have slashed its prices.