April 11, 2021
Huawei eyes EVs as sanctions cut into traditional business big time, report says

Huawei eyes EVs as sanctions cut into traditional business big time, report says


Huawei

A Huawei car? Perhaps.


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The world’s largest telecommunications gear-maker may soon dive into a totally different segment: electric vehicles. According to a report from Reuters on Friday, China’s Huawei may roll out EVs under a new brand with at least one partnership with a Chinese automaker as soon as this year.

The shift in strategy not only comes as more Chinese technology companies announce their intentions to build battery-powered cars, but for Huawei, it’s reportedly a necessary diversification. US sanctions, put in place over national security concerns under the Trump administration in 2019, have “battered” the company, according to Reuters. Actions to keep the firm alive included selling part of its smartphone operations. With prospects slim of the Biden administration reversing course, sources familiar with the company’s plans told the outlet it needed to move in a different direction. Huawei did not immediately return Roadshow’s request for comment on the purported EV plans.

Like other Chinese companies dabbling in the EV segment, including Baidu, Huawei reportedly seeks an automotive partner to help its vehicle plans come to life. Meanwhile, the company has already started designing an electric car meant to target the masses, a source told Reuters. The project could come to light as soon as this year.

The strategy to shift from consumer technology to something much bigger isn’t native to China, though. Here in the US, rumors ramped up significantly surrounding anĀ Apple Car this year as the California-based tech giant reportedly seeks a partner to help build the vehicle. Hyundai and Kia were at the top of the list, though both firms said publicly that they’re no longer in discussions with Apple. General Motors, Stellantis and Nissan are also possible candidates, analysts said in the past.



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