(Yicai Global) June 21 -- Nio, a Chinese rival of Li Auto and Xpeng Motors, has gained the green light to bring the new energy vehicle maker's first smartphone onto the market to enrich its ecosystem.

The Ministry of Industry and Information Technology approved the phone, developed by Nio Mobile Technologies, this week. The Shanghai-based firm said earlier that deliveries of the product, which supports multiple network standards including fifth-generation wireless and is equipped with Bluetooth-like ultra-wideband technology, could start in the third quarter.

The startup could use UWB, which is the same technology behind Apple's AirDrop, to allow car owners to share data with other devices and use their phones as digital keys to their vehicles.

The worlds of automobiles and other devices are merging as telecoms giant Huawei Technologies and internet behemoth Baidu have started installing their autopilot systems in cars. Meanwhile, Nio is the second Chinese car firm to make the move after Geely Holding Group purchased Zhuhai-based handset maker Meizu Technology late last year.

Nio first introduced its entry into the sector in December. Chief Executive Li Bin said the company intends to release new handset models every year like Apple while the first devices were already in production then. Nio established Nio Mobile in August and applied for the Nio Phone trademark in December.

Editor: Emmi Laine