Xiaomi Corp reported quarterly profit from its electric vehicle business for the first time, a major milestone for the smartphone maker’s ambitious foray into the crowded market.

The company’s EV division, which sold its first car last year, posted a profit of 700 million yuan ($98 million) in the September quarter. That reversed a loss of 300 million yuan in the previous three months, and helped the Beijing-based company more than double net income.

Xiaomi joins a select club of Chinese EV makers that actually make a profit. With a goal of becoming one of the world’s top five carmakers, the company is ratcheting up production to try and compete with the likes of Tesla Inc. and BYD Co. in China and eventually overseas. The company aims to start selling EVs in Europe in 2027.

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