Huawei’s auto push won’t include making its own cars, the company said Monday. The statement comes on the heels of a series of high profile moves into auto technology by the telecoms giant, and reports that it plans to manufacture its own vehicles.
Why it matters: Huawei’s statement comes amid unease from existing carmakers that Huawei will enter the industry by manufacturing its own cars.
Details: Huawei has not invested in any automakers and is not interested in acquiring majority stakes in car companies in the future, the company said in a statement on Monday.
- The Chinese smartphone maker reaffirmed that it will stick with a “long-term strategy” of manufacturing key components for intelligent and connected vehicles.
- “Persistent rumors that Huawei is investing in its own car production capabilities, or that we own shares in car manufacturers, are unfounded and do not stand up to scrutiny,” Huawei said.
- Shares of BAIC Blue Valley and Changan Automobile, two of the company’s major auto partners, plunged 10% on Monday following Huawei’s announcement. Both companies’ shares slumped a further 4.8% and 4.4%, respectively, on Tuesday.
Context: China’s tech and auto industries have long swirled with rumors of Huawei buying stakes in domestic car companies.
- The smartphone maker seeks to tap into the autonomous and electric vehicle market as its core businesses faces pressure amid US sanctions.
- According to a Reuters report in April, Huawei was looking to acquire a controlling stake in the EV unit of lesser-known domestic carmaker Chongqing Sokon, in a move that would enable the tech giant to make Huawei-branded cars. Sokon’s latest model, the Seres SF5, has been on sale in Huawei stores since last month.