Another smartphone maker may be interested in the electric car market: Huawei. According to Reuters sources, the company is talking to Chinese automakers and may launch a vehicle as early as 2021.
Companies consulted by Huawei include Changan Automobile, which is controlled by the Chinese government, and BluePark New Energy Technology, owned by the BAIC group.
Huawei did not confirm that it was building its own car, but commented on interest in the area in a statement sent to Reuters. The company says it intends to offer technologies for building smarter and more connected vehicles.
“Huawei is not a car manufacturer,” says the company. “However, through information and communication technology, we aim to be a digital supplier of new, car-oriented components, allowing manufacturers to build better vehicles.”
New focus after ban
Huawei’s interest in the electric vehicle market would be linked to the company’s ban in the United States. In the past two years, the brand has suffered from the country’s prohibitive sanctions, which have hindered the company’s performance in the smartphone and telecommunications sector.
Reuters sources point out that Richard Yu, Huawei’s CEO, sees electric cars as a possible new focus for the manufacturer. The segment has growth potential and high profit margins, so much so that Apple intends to enter the sector in the future, according to speculation.
In China, the market for electric and hybrid vehicles is expected to grow by about 20% by 2025, Reuters estimates. By the end of this year, it is expected that approximately 1.8 million cars powered by clean energy will be sold in the country, a considerable increase compared to the 1.3 million sold last year.