Beijing, Aug 27 (IANS): Xiaomi is reportedly planning to buy an autonomous driving technology based startup called Deepmotion for $77.4 million.

The deal happens as the company gears up to enter the electric vehicle market, reports GizmoChina.

Deepmotion develops driver assistance software.

"Multiple sources have recently stated that Xiaomi is planning to build its own car and is considering it as a strategic decision, but specific details and the path it aims to take are yet to be determined," the report said on Thursday.

As far as project leadership is concerned, Xiaomi's current CEO Lei Jun will directly head it, the report mentioned.

Back in 2013, Lei Jun had visited the US twice to meet with Tesla CEO Elon Musk and now it seems that its interest on the field has grown.

As per the report, the diversification arrives as the smartphone market faces stagnation. Furthermore, the electric smart vehicle market has been seeing a rise in popularity.

The Indian market has also seen a demand for smart vehicles, and auto companies like Tata, Mahindra and others are offering their electric vehicles.

In addition, Huawei, which is focusing on expanding its portfolio to boost business resilience, will invest $1 billion in smart car technologies in 2021.

The new investment that the company is making this year will focus on building components for smart vehicles, including software platforms for self-driving cars.