Huawei plans to make electric vehicles as US sanctions bite, and hammer smartphone sales

Huawei electric car
Huawei is shifting its focus towards EV and is planning to collaborate with Chang'an Automobile Co., Ltd.,

China’s Huawei, still struggling to get back on its feet after US sanctions, has decided to shift its focus towards electric vehicles. According to the Reuters report, Huawei could launch its brand of electric cars in 2021. Also Read: Jaguar Land Rover plans to go fully electric by 2039; first all-electric Land Rover variant expected in 2024

Huawei’s plan: TheShenzhen headquartered telecommunications equipment major is shifting its focus towards EV and is planning to collaborate with Chang’an Automobile Co., Ltd., a state-owned automobile manufacturer headquartered in Chongqing, China. Huawei is also in talks with other carmakers like BAIC BluePark New Energy Technology Co., Ltd, and will initially use their plants for research and development of electric vehicles.

Huawei, in all probability, will follow in Apple’s footsteps and just supply sensors, software, fundamental processors and artificial intelligence algorithms. Huawei plans to get the critical hardware for the autonomous vehicle from outside vendors. Also Read: Apple tries to seduce Nissan but fails, talks end over differences on branding of autonomous car

Sanctions on Huawei: Former US President Donald Trump had placed dampeners on Huawei’s growth. It is still a pariah in the US, UK and even Sweden. US government had imposed restrictions on shipments of semiconductors and other gear needed for smartphones and 5G services. Also Read: India needs integrated approach to develop indigenous fuel cells for electric vehicles, says Nitin Gadkari

  • Huawei was reportedly planning to sell its smartphone brands P and Mate and eventually exit from the high-end smartphone-manufacturing biz.
  • Huawei founder and CEO Ren Zhengfe smashed the reports of sale. He said that he was confident that China-US relations would improve.

EV in China: China is banking on greener EVs to reduce air pollution in countries’ major cities. By 2025, sale of new energy vehicles is projected to be anywhere in the vicinity of 20% of China’s overall annual auto sales. Also Read: Apple iCar? Self-driving car with “next level” battery tech from iPhone maker could be a reality in 2024

  • The year 2021 is expecting to witness sale of 1.8 million units of new energy vehicles (NEVs).
  • Nearly 1.3 million NEVs were sold in 2020 in China
  • Other than the announcement from Huawei, Baidu and Foxconn are also planning to make their own cars

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