Nio is reportedly getting into the business of making smartphones

Chinese EV maker Nio is taking a step into hardware by developing its own smartphones, Chinese media 36Kr reported. The move makes Nio the latest Chinese automaker to diversify operations in the hope of protecting its core EV business amid increased competition.

Why it matters: Nio’s pursuit of making smartphones comes as other Chinese tech companies are making plans to build EVs, looking to profit in the world’s biggest auto market embracing EVs.

Details: Nio recently hired Yin Shuijun, former president of the smartphone unit of Chinese mobile internet firm Meitu, to lead the new business in Shenzhen, Chinese media 36Kr reported Wednesday, citing people familiar with the matter.

Context: Nio is not alone in exploring new areas for expansion, as multiple Chinese tech companies are also looking to enter the EV space.

Jill Shen

Jill Shen is Shanghai-based technology reporter. She covers Chinese mobility, autonomous vehicles, and electric cars. Connect with her via e-mail: jill.shen@technode.com or Twitter: @yushan_shenMore by Jill Shen