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The Chinese company plans to produce electric vehicles under its own brand and may launch several models this year.
Huawei Technologies Co. Ltd. is in talks with state-owned Changan Automobile and other automotive manufacturers to use their car plants to make its own electric vehicles (EVs), according to two people familiar with the matter, writes Reuters. Huawei is also in discussions with the Beijing-backed BAIC Group BluePark New Energy Technology to produce its EVs.
The plan heralds a potentially major shift in direction for Huawei after nearly two years of US sanctions that have curtailed its access to key supply chains, forcing it to sell part of its smartphone business to keep the brand alive. Huawei was placed on a blacklist by the Trump administration for national security concerns. Many industry leaders see little chance that the blockade on the sale of billions of dollars in US technology and chips to the Chinese company will be lifted by its successor.
A Huawei spokesman denied the company plans to design EVs or produce Huawei-branded vehicles. “Huawei is not a car manufacturer. However through ICT (information and communication technology), we aim to be a car-oriented digital provider and new components added, enabling cars to build better vehicles“.
Huawei has started designing the interior of EVs and approaching home suppliers, with the aim of officially launching the project as of this year, sources said. Richard Yu, head of Huawei’s consumer business group, which led the company to become one of the world’s largest smartphone makers, will shift its focus to EVs, writes Reuters further .
EVs will target a mass market segment, another source said. Chongqing-based Changan, which is making cars with Ford Motor Co., declined to comment. BAIC BluePark did not respond to repeated requests for comment.
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