Nothing official yet.. Reuters says.. Huawei denies
In February of this year, a report hinted at a possible shift towards the auto industry for Huawei . Currently, the world’s largest telecommunications equipment manufacturer, in April, the Chinese company announced that it will start selling the Seres SF5 crossover,
And now it seems Huawei wants to deepen its auto affairs. As reported by Reuters in a second report, Mallaky.com had previously conveyed a confirmation from Huawei that it will not turn into a car maker , but that it wants Bosch to be China’s manufacturer of auto parts.
According to a new report, the company is in talks with Chongqing Sokon to acquire a controlling stake in Chongqing Jinkang New Energy Automobile. Reuters claims the information comes from “two people with direct knowledge of the matter said,” although it is clearly not yet official. The Seres brand is a major asset of the company.
According to a Reuters report, the Chinese tech giant is in talks with Chongqing Sokon to acquire a controlling stake in automaker Chongqing Jinkang New Energy Automobile, according to sources close to the matter. In other words, the move will enable the consumer electronics and communications equipment maker to make smart cars with its own name. Notably, Jinkang considers the American electric car maker Seres as its primary asset.
Reuters said the two companies rejected the rumors, and a Huawei spokesman said “Huawei does not make cars.” He also added that the tech giant is not looking to acquire a controlling stake, while Chongqing Sokon simply did not comment.
VW said to buy Huawei’s autonomous self-driving car platform for US$1.6 billion – NotebookCheck.net News.
One of them was quoted by Reuters as saying that the company aims to launch the first smart car under its own brand for mass production as soon as possible by the end of this year.
The same person said Huawei has high expectations about the model, which is being developed based on the Seres SF5, but Sokon’s current supply chain is struggling to meet those expectations. According to Reuters.
“The supply chain for the auto industry is very long and complex,” the source, who declined to be named, added. “Huawei has its strengths in software and platforms but its ideas cannot be realized without strong technical improvements in the supply chain.”
According to Reuters, Richard Yu is leading talks on the possible acquisition of Chongqing Jinkang New Energy Automobile. Yu was one of the key executives behind Huawei’s rise and is currently responsible for its transformation into the auto industry. It is believed that Huawei wants to complete the deal as soon as possible in July of this year.
Acquiring a controlling stake will also allow Huawei to look beyond just offering more than just self-driving software and related hardware technologies. Meaning, it could also allow the company to gain a definitive presence in the electric vehicle market. Unfortunately, neither Huawei nor Sokon have made any statements regarding this matter. If the news is true, it will mark a major shift for the company and the focus of its business in the electric vehicle market.
Fears of turning Huawei into a car company
Reuters had published a report in February, in which it said that Huawei plans to manufacture electric vehicles under its own brand and could launch some models this year. For months, Huawei has been deeply involved in operating and manufacturing the little-known Sukon and the Seres car that Reuters has listed as the loser.
Under the partnership, Ceres’ first model, the “Huawei Smart Selection” SF5, made its debut at the Shanghai Auto Show and received more than 3,000 orders within two days after presale began last week, according to Ceres.
Huawei sells SF5 vehicles in its stores across China including its online store VMall.com. For now, Huawei will continue to sell the Seres SF5 crossover in some of its flagship stores across China. Prices start at CNY 246,800 (about $38,000 at current exchange rates) for the all-wheel drive model and CNY 216,800 ($33,361) for the two-wheel drive variant.
Sales of new energy vehicles, including pure battery electric vehicles, as well as hybrid electric vehicles and hydrogen fuel cell vehicles, are expected to account for 20% of total annual vehicle sales in China by 2025.
Analysts see Huawei’s potential entry into the automotive field as an opportunity for the company to compensate for the decline in the smartphone business due to US sanctions. Huawei recently announced deals with three Chinese automakers to supply the Huawei Inside car operating system. A potential takeover of a small car brand appears to be the next logical step.
Huawei
Huawei is a huge manufacturer of smartphones, telecommunications and consumer electronics. But recent US sanctions have crippled the phone unit, while it faces pressure from various governments over its communications equipment. Thus, a deepening into the electric vehicle market may signal a shift in the focus of its business as a whole.
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