BEIJING, March 12 Reuters China39;s Xiaomi said on Tuesday it will start deliveries of its first electric vehicle EV model SU7 this month, venturing into the world39;s largest auto market amid a brutal price war.

The smartphone maker, China39;s fifthlargest, said in a Weibo post it has 59 stores in 29 cities nationwide that will take orders. A launch event is scheduled for March 28 when the new EV39;s sticker tag is expected to be announced.

Xiaomi39;s shares rallied 7 during morning trade.

China39;s EV sales climbed 18 in JanuaryFebruary, not too far off 21 growth seen for all of 2023. This year has seen a round of deeper price cuts led by market leader BYD to woo consumers amid weakening domestic demand.

At the unveiling of the Speed Ultra 7 SU7 sedan in December, Chief Executive Lei Jun said Xiaomi plans to become one of the world39;s top five automakers.

The SU7, Lei touted, has super electric motor technology capable of delivering acceleration speeds faster than Tesla and Porsche39;s EVs.

Analysts say the car39;s shared operating system with Xiaomi39;s popular phones and other electronic devices will appeal to the company39;s existing customers.

Xiaomi has been seeking to diversify beyond its core business to EVs amid stagnating demand for smartphones a plan it first flagged in 2021.

Its cars will be produced by a unit of stateowned automaker BAIC Group, in a Beijing factory with an annual capacity of 200,000 vehicles.

The smartphone giant has pledged to…