(Yicai) Jan. 3 -- Xiaomi Automobile, the electric vehicle unit of Chinese handset giant Xiaomi, said it will sell its cars through direct sales and dealerships, with a view to working with China's top 100 dealers. The company’s first EV was unveiled at the end of last month and is slated for launch in the coming months.

Xiaomi Auto's sales channel will be based on a "one plus N" model, the Beijing-based firm said yesterday. The “one" stands for the company's self-built and self-operated delivery center, with the main function being delivery, while "N" represents agent sales and user service points, it added.

Xiaomi Auto will start recruiting for Xiaomi Auto Sales and Service Stores in 17 Chinese cities, including Suzhou, Chongqing, Ningbo, and Nanjing, targeting China's top 100 auto dealer groups or strong local businesses, it noted, adding that it will give priority to those with experience in luxury or mainstream new energy vehicle brands.

The automaker’s new retail model is still based on "direct sales," said Xiaomi President Lu Weibing.

Xiaomi is cooperating with dealers to build 2S stores in mainstream auto business districts and will use its existing Mi Home stores in key shopping malls to gradually introduce its autos. Many of the stores are being renovated and display vehicles are likely to arrive in the first quarter of this year, Yicai learned.

Xiaomi signed a letter of intent with the first group of 14 sales and service partners on Dec. 29. Sichuan Ganghong Auto, which owns the regional agency rights of nine major car brands, including Shanghai GM Buick, GAC Honda Automobile, Dongfeng Nissan, Lexus, and BYD, as well as E Kingo, one of China's top 10 auto service provider, were among them, Yicai also learned.

Xiaomi debuted its first EV, the mid-level five-seat Xiaomi SU7 sedan, on Dec. 28. The model is being produced in small batches and will come onto the market in a few months, founder and Chairman Lei Jun said at the unveiling.

Editors: Shi Yi, Martin Kadiev