Chinese communications equipment maker ZTE will set up a smart vehicle electronics product line responsible for unified R&D and operations, Yi Cai reported on Wednesday.

The leader of the new business segment is to be confirmed, the sources said, adding that ZTE's smart vehicle-related plans have been made in electronics, networking, operating systems, driver-assistance and smart charging.

Chinese tech companies are enthusiastic about the automobile sector lately. 

In January, Chinese internet platform and AI company Baidu announced it will establish a company that produces intelligent electric vehicles (EV), teaming up with auto manufacturer Geely.

For the new company, Baidu will provide intelligent driving capabilities to power the passenger vehicles, while Geely will contribute its expertise in automobile design and manufacturing.

Earlier, Chinese largest handset maker Xiaomi reportedly planned to step into the EV manufacturing business. 

Although the company now holds 834 automobile-related patents, the company clarified that it has not initiated any formal project regarding the study of such business.