Huawei, a global telecommunications giant, has recently amplified its foray into the smart car industry. This strategic pivot reflects the company’s adaptation to the evolving tech landscape and the growing electric vehicle (EV) market. At the heart of this shift is Huawei’s collaboration with Changan Automobile, a prominent Chinese carmaker, to establish a new joint venture dedicated to smart vehicles.

This marks a big sidestep for the company’s core telecommunication business

The venture marks a significant departure from Huawei’s core telecommunication business, signaling its ambition to diversify amidst the challenges posed by US sanctions. Huawei’s decision to invite additional partners, including Seres Group, Chery Automobile, JAC Motors, and BAIC Motor, further demonstrates its commitment to this new domain. These companies, though relatively smaller in China‘s vast automotive landscape, have been integral in developing new brands in collaboration with Huawei.

Huawei

This move by Huawei is not just about expanding its business portfolio; it’s a strategic alignment with the rapidly growing EV sector. China’s EV market is fiercely competitive, with players like Tesla and BYD setting high standards. Huawei’s entry, with less than 100,000 units delivered last year under its Aito brand, indicates a cautious yet hopeful beginning in this segment.

The launch of the Luxeed S7 sedan, a joint venture with Chery, showcases Huawei’s capabilities in integrating smart technology with automotive design. Priced competitively against Tesla’s Model S, the S7 has already garnered significant consumer interest, indicating potential success for Huawei’s new venture.

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