Huawei is working on its own EV
It is intended for tense regional market
The Chinese technology and Telecom Group Huawei is working on its own electric car. The first models may appear on the market this year, reports Reuters on the basis of anonymous insiders. The company itself, struggling with American sanctions, denies the plans for a plug car.
According to the insiders, Huawei internally began the design of electric vehicles. In addition, the company would hold 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-owned industrial group BAIC.
If Huawei indeed makes the move to electric cars, that is a major shift in the company’s business. Today, the company mainly makes money selling smartphones and equipment for telecom networks.
This is becoming increasingly difficult as the United States has imposed sanctions against Huawei, due to its alleged close ties with the Chinese military and possible risks of espionage. As a result, American suppliers cannot sell their goods to the company without a special license. Sales of products incorporating American technology, such as chips, have also been restricted.
An extension to electric cars could be a solution for Huawei. Home country China is currently the largest market for these vehicles. The Chinese government strongly encourages the switch to electric driving, in order to reduce the country’s heavy air pollution. According to estimates, electric cars will account for one fifth of all cars sold in the Asian country by 2025.