Huawei to invest $1 billion in EV and Self-Driving Technology

Huawei to invest $1 billion in EV and Self-Driving Technology

Huawei to invest $1 billion in EV and Self-Driving Technology

Huawei is going through very rough times as the United States has imposed several sanctions on the company, restricting the Chinese giant in various businesses. It shut down its high-end chip production and is also losing marketing share in the smartphone business.

While its telecom and mobile business is suffering, the company is moving ahead to establish itself in the next major thing — Electric Vehicles and Self-Driving Technology. In line with this, Huawei will invest about $1 billion for the development of such technologies under its brand, reports Bloomberg.

Huawei is now aiming to take on the likes of Tesla and Xiaomi, among others with its own self-driving car technology. The company has already clarified that it has no plans to make its own car but will supply its tech to carmakers.

It has already partnered with three automakers — BAIC Group, Chongqing Changan Automobile Co, and Guangzhou Automobile Group Co. Eric Xu, the rotating chairman of Huawei also revealed that the cars launched will carry the Huawei name as a sub-brand.

Huawei’s autonomous-driving technology has already surpassed Tesla’s in some aspects of technology. For instance, the company’s cars have cruised for more than 1,000 kilometers (621 miles) without human intervention.

Commenting on this, Eric Xu said: “The smart car business unit receives one of the heaviest investments from Huawei. We will invest more than $1 billion in car component development this year. China adds 30 million cars each year and the number is growing. Even if we don’t tap the market outside of China, if we can earn an average of 10,000 yuan from each car sold in China, that’s already a very big business for Huawei.”

Huawei has already launched smart car connectivity products and the company’s info and entertainment technology can already be found in Mercedes-Benz sedans. It has also teamed up with companies like BAIC BluePark New Energy Technology Co. to develop smart car systems and the first model under the partnership — the Arcfox αS HBT will be unveiled at Auto Shanghai in April.

Apart from Huawei, other tech giants like Apple and Xiaomi are also targeting the automobile industry as companies race to make vehicles more environment-friendly, autonomous, and connected goes on. According to the report from Canalys, EV sales in China may climb more than 50 percent this year alone.

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