Xiaomi, the smartphone vendor that has become one of Tesla’s biggest challengers in mainland China after entering the electric vehicle (EV) market, has doubled down on research and development to combat a slowdown in domestic sales.

The Beijing-based tech giant announced on Thursday it would assemble and sell models under a new sport-utility vehicle (SUV) line known as Sky Nomad, a product range analysts said would be likely to include extended-range battery technology to lure consumers away from domestic rivals such as Li Auto and Xpeng.

“Sky Nomad will be synonymous with smart, adaptable, large-space SUVs,” Xiaomi EV said in a statement posted on social media. “This represents Xiaomi’s efforts in car manufacturing over the past five years, catering to diverse user needs.”

But analysts and dealers said they expected the first batch of production models to feature extended-range technology, including small internal combustion engines that generate additional power to charge the ­battery when needed.

In June, China’s Ministry of Industry and Information Technology published a new catalogue of EV models, which included extended-range battery vehicles built by Xiaomi. Models on the list are allowed to begin production, and are partially exempted from vehicle purchase taxes until the end of the year.