Shares of Xiaomi tumbled after the Chinese handset giant's two pure electric vehicles appeared in the latest new car declaration catalog released by China's Ministry of Industry and Information Technology.

Xiaomi [HKG: 1810] plunged 6 percent to HKD15.80 (USD10.25) a share as of lunch break in Hong Kong today, after sinking by as much as 7.1 percent in the morning trading session.

Xiaomi's SU7 and SU7 MAX inclusion in the catalog, which was issued yesterday and lists new models that have passed official tests and certifications and are about to be put on the market, likely means that the Beijing-based firm is about to start mass production.

According to data by the MIIT, Xiaomi's EVs will be made by BAIC Rover, a unit of Beijing Automotive Group, the Chinese partner of Mercedes-Benz. The SU7 appears to be a mix between a Porsche Taycan and a Tesla Model 3, with both Xiaomi autos having five seats with a wheelbase of 3000 millimeters, larger than the Taycan.

Xiaomi cars will use battery titan Contemporary Amperex Technology's ternary lithium-ion batteries and lithium iron phosphate batteries provided by EV and battery giant BYD's Ferdi brand.

Xiaomi cars are in the pilot production stage, with 50 sample cars made per week and a likely annual capacity of 150,000 units in the future, according to previous institutional research.

The handset maker can give full play to the advantages of intelligent interaction between cars and phones, channel operation, and brand promotion, Huatai Securities noted. It will likely release its first pure electric model in the first half of next year, it added.

（Picture: Veer）