Huawei Technologies is apparently in talks to take control of the electric unit of a small automaker that is based in China. This would imply that the company is diving deeper into the electric vehicle market.
According to a Reuters report, the Chinese tech giant is in talks with Chongqing Sokon to acquire a controlling stake in the automobile maker’s Chongqing Jinkang New Energy Automobile, as per sources close to the matter. In other words, this move will enable the consumer electronics maker and telecom equipment maker to make smart cars that are branded with its own name. Notably, Jinkang counts US electric vehicle producer Seres as its primary asset.
Acquiring controlling stake would also allow Huawei to look beyond just offering more than just self driving softwares and related hardware technology. Meaning, this could also allow the company to have an end to end presence in the electric cars market. Unfortunately, both Huawei and Sokon did not offer any statements regarding this matter. If the news is true, then this would mark a major shift for the company and its business focus in the EV market.
For those unaware, the company has primarily been a smartphone, telecom, and consumer electronics manufacturer. But recent US sanctions have crippled its handset unit, while it faces pressures from various governments for its telecom equipment. Thus, the deeper dive in to EV market could signal a shift in its business focus as a whole. One source added that “The supply chain for the auto industry is very long and complicated. Huawei does have its strength in software and platform but its ideas can’t be realized without solid technology improvements in the supply chain.”
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