Reuters news agency reports this on the basis of anonymous insiders. The company itself, which is facing US sanctions, denies plans for an electric car.
According to the insiders, Huawei has started internally with the design of electric vehicles. In addition, the company is said to be in talks with Chinese car manufacturers to use their factories for car production.
Huawei may then have the electric cars assembled by a subsidiary of the state industrial group BAIC.
If Huawei does indeed move to electric cars, it will be a major shift in the company’s activities. Now the company mainly earns money from the sale of smartphones and equipment for telecom networks.
This is becoming increasingly difficult as the United States has imposed sanctions against Huawei for alleged close ties to the Chinese military and potential risks of espionage. As a result, US suppliers cannot sell their wares to the company without a special permit. The sale of products containing American technology, such as chips, has also been restricted.
China is going to drive electrically
An expansion to electric cars could offer a solution for Huawei. Home country China is currently the largest market for these vehicles. The Chinese government is strongly stimulating the switch to electric driving, in order to combat the heavy air pollution in the country. Electric cars are estimated to account for a fifth of all cars sold in the Asian country by 2025.
More and more tech companies are developing techniques for electric and self-driving cars. Google, Apple, Amazon, Uber and Microsoft, among others, are working on this. Huawei already showed in 2018 how it had made a Porsche self-driving using just a smartphone.
The large tech manufacturer Foxconn, the well-known producer of iPhones for Apple, announced this week that it is developing an electric car together with the American start-up Fisker.
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