Asia Tech Wire (May 30) -- Chinese tech company Xiaomi says it never had any plans or moves to acquire or take a controlling stake in real estate developer Evergrande's electric car unit.

Market sources recently claimed that Xiaomi's electric car unit, Xiaomi Auto, is looking to acquire a 58.5% stake in China Evergrande New Energy Vehicle Group Ltd (0708.HK), known as Evergrande Auto.

The rumors mentioned that Xiaomi's first electric car, the SU7, is selling like hot cakes, though the company's Beijing plant has a total capacity of 300,000 units.

Thus, Xiaomi Auto plans to use Evergrande Auto's Tianjin plant to rapidly expand its capacity in order to advance the Xiaomi SU7's output and prepare for the mass production of its second SUV model.

A Xiaomi spokesperson said on Chinese social media platform Weibo on Thursday afternoon, "Xiaomi Auto has never had any plan or move to acquire or hold Evergrande Auto."

On Sunday night, Evergrande Auto announced that a buyer would immediately acquire 3.145 billion of its potentially for-sale shares, or about 29% of all outstanding shares.