(Yicai) March 12 -- Shares of Xiaomi surged after the Chinese handset giant's electric vehicle unit said it plans to debut and start delivering its first model on March 28.

Xiaomi [HKG: 1810] soared 10.5 percent to HKD14.80 (USD1.89) a share as of 1.20 p.m. in Hong Kong today.

Customers can reserve the mid-level five-seat SU7 sedan at Xiaomi's 59 outlets in 29 Chinese cities, including Beijing, Shanghai, Guangzhou, and Shenzhen, Xiaomi Automobile announced today.

Xiaomi first set out its auto business plan in March 2021. It invested CNY10 billion (USD1.4 billion) in the first phase of the business and plans to invest USD10 billion over the next 10 years, the Beijing-based firm said on the Hong Kong Stock Exchange.

Amid the escalating price war in China's vehicle market this year, how much will Xiaomi's car cost for the firm to win a market share has become a topic of great concern.

Given the battery and performance, the SU7 is expected to cost more than the market prediction of CNY99,000 or CNY149,000 (USD13,795 or USD20,760), Xiaomi founder and Chief Executive Lei Jun said on Weibo on Dec. 27. The price of the vehicle has not been finalized, and while it may be a bit expensive, the experience will exceed everyone's expectations, he added.

According to a media report in January, a big insurer said Xiaomi Auto had priced the SU7's deluxe version at CNY361,400. But Wang Hua, head of public relations at Xiaomi, said on Weibo at the time that the reported pricing was just a test price for insurance purposes.

The final price of the SU7 has not been announced yet.

Editors: Shi Yi, Martin Kadiev