Reuters: Huawei may launch an electric vehicle this year

According to Reuters sources, Huawei is in talks with Changan Automobile and several other car brands to use their factories to produce electric cars. In addition, Huawei is also in talks with BluePark New Technology to produce electric vehicles.

The plan heralds an important transition for Huawei after nearly two years of US sanctions, blocking access to essential supplies, forcing it to sell part of its smartphone division to survive.

Huawei is on the US blacklist because of the risk of national security. Many industry experts predict the chance of a Huawei ban reversing is very low.

However, a Huawei spokesperson denied Reuters information. Huawei is not a car manufacturer, he said. But through information technology, Huawei wants to become a new supplier of accessories, allowing car manufacturers to build better vehicles.

Huawei has begun its own electric vehicle design and approached home suppliers with the intention of officially announcing the project this year, three Reuters sources said. Richard Yu, director of Huawei consumer division, will shift his focus to electric vehicles. It is aimed at the mass market.

Chinese technology companies are increasing into electric vehicles as Beijing strongly encourages “green cars” to reduce environmental pollution. New energy vehicle (NEV) sales, which include all-electric vehicles and hybrid and petrol and electric cars, are expected to account for 20% of annual auto sales in China by 2025. This year, NEV sales in the country may reach 1.8 million vehicles, up from 1.3 million in 2020.

Huawei extends the list of Chinese tech firms that share the ambition of making their own cars, including Baidu and Foxconn. A complicated US ban on semiconductors is gradually strangling the company, according to analyst Dan Wang. So it’s understandable to move to less chip-stressed industries to stay afloat.

Over the years, Huawei has been developing a range of technologies for electric vehicles such as in-vehicle software systems, automotive sensors, and 5G hardware. The company also cooperates with manufacturers such as Daimler AG, GM, and SAIC Motor to jointly develop smart vehicle technology. The company has increased recruitment of vehicle-related engineers since 2018.

This week, Huawei received at least four electric vehicle patents, covering the method of charging the electric vehicle and checking the battery status.

According to Reuters