HONG KONG/BEIJING (CHINA) – Chinese telecoms giant Huawei is mulling manufacturing electric vehicles under its own brand and some models could be rolled out this year, said sources. This comes as the firm is exploring a strategic shift after being battered by US curbs.
The firm is holding discussions with state-owned Changan Automobile and other car makers to use their car plants to manufacture its electric vehicles (EVs).
Huawei is also holding talks with Beijing-supported BAIC Group’s BluePark New Energy Technology to bring out its EVs, a source said.
The plan marks a major shift in direction as far as the firm is concerned. Two years of US sanctions have snapped its access to key supply chains, forcing the company to sell a part of its smartphone business.
The firm was placed on a trade blacklist by the previous Donald Trump administration citing national security issues. Industry executives see little chance that blocks on the sale of billions of dollars of US technology and chips to the firm will be reversed by Joe Biden.
“Huawei is not a car manufacturer. However through ICT (information and communications technology), we aim to be a digital car-oriented and new-added components provider, enabling car OEMs (original equipment manufacturers) to build better vehicles,” said a spokesperson for Huawei.
Three sources said the firm has already started internally designing the EVs and approaching suppliers at home in order to launch the project this year.
Richard Yu, head of Huawei’s consumer business group, will shift his focus to EVs, said one source. The EVs are aimed at a mass-market segment.
Tech firms in China have been focussing on EVs in the world’s biggest market for such firms. Beijing is heavily endorsing green vehicles to reduce the levels of pollution.
Sales of new energy vehicles (NEVs), including pure battery electric vehicles and plug-in hybrid and hydrogen fuel cell vehicles, are slated to comprise 20% of China’s overall annual auto sales by 2025.
China’s NEV sales is pegged at 1.8 million units this year, up from 1.3 million last year.