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BusinessHuawei explains why it does not build cars

Huawei explains why it does not build cars


Rumors about tech giant Huawei building cars come out every so often, and the company spokesperson has denied it several times. Now, it has explained the specific considerations behind this.

On June 28, at the China Automotive Industry Development Summit jointly organized by the China Electric Vehicle Association and Great Wall Motors, Chi Linchun, general manager of marketing and sales at Huawei’s smart car solutions business unit, said there were multiple considerations for Huawei’s decision not to build a vehicle, according to the Securities Times.

Huawei’s ICT business has huge business interests present in the European market, and Germany is the most important market for Huawei’s ICT business, and the pillar industry in Germany is the automotive industry, Chi said, adding that if Huawei builds a car, it will bring direct competition.

Chi stressed that cars are very different from cell phone terminals, and Huawei does not currently have the strength to build cars, nor will Huawei hold and invest in any car companies.

In a statement released on May 24, Huawei again reiterated that Huawei does not build cars, a long-term strategy that was made clear in 2018 and has not changed.

“We believe that what the industry needs is not Huawei-branded cars, but Huawei’s ICT technology capabilities accumulated over three decades in order to help car companies build future-proof cars,” the statement said, adding, “That is, we provide car companies with Huawei-based ICT capabilities for smart connected car components.”

So far, Huawei has not invested in any car companies and will not invest in any car companies in the future, let alone hold or participate in them, Huawei said.

“In the future, anyone who says Huawei is building cars, or taking a stake in the car manufacturing industry, is false news, so please don’t believe it,” the company said.

In Huawei’s partnership with Seres, a subsidiary of Chongqing Sokon, Huawei was the supplier of electric components and HiCar cockpit components for the Seres SF5, the statement said.

To address the survival of Huawei’s authorized cell phone retail stores in the face of a significant reduction in Huawei phones, Huawei was supporting some of the retail stores to sell the car, with the retail stores receiving corresponding revenue, the statement said.

This article was first published by Phate Zhang on CnEVPost, a website focusing on new energy vehicle news from China.

CnEVPost is a website focused on the coverage of the new energy vehicle industry in China. As with our original intent for CnTechPost, there are a lot of interesting things happening in the Chinese EV industry every day, but they are not covered by the mainstream English language media. We're here to keep track of what's happening in the Chinese EV industry and strive to be the first to publish what we see in English.