Because of the US sanctions, Huawei is looking for new business areas to support the weak smartphone division. Now they want to turn to one of the currently most dynamic markets and invest in e-cars. That should happen differently than is apparent at first glance.
Huawei tries it with e-cars: Intelligent driving systems are supposed to cushion the US ban
There is a lot of movement at the Chinese technology group Huawei: The smartphone sector has been suffering from the US government’s export ban for months, and there is no end in sight even under the new President Joe Biden. With software for the pig is already opening up a new business, meanwhile, while the cloud and AI division also is again on the brink of shortly after the start.
Now they want to get involved in a promising market: In the current year, Huawei plans to invest more than 1 billion dollars in e-cars. The group has now announced that. In contrast to the Chinese competitor Xiaomi, Huawei apparently does not want to bring its own electric vehicle onto the market.
Will Huawei become an auto supplier?
As Handelsblatt reports, Huawei is instead focusing on the production of components for intelligent vehicles. If the plan works, Huawei technology that supports autonomous driving or uses other intelligent systems could be found in many e-cars in the future. For example, Samsung is successfully pursuing a similar strategy in display production.
In addition, Huawei wants to become even stronger in the software sector and invest in business areas that are less dependent on high-performance processor technology. There, the US ban had hit the Chinese company particularly hard.
Eric Xu, a board member in Huawei’s rotating management system, does not assume that the export restrictions will be relaxed in the foreseeable future. So Huawei has to be inventive if you want to limit the damage to some extent. But you will certainly not develop into a pure automotive supplier. There are too many other profitable areas of business for Huawei that, including 5G technology.