Faced with US sanctions, Huawei must find other business alternatives, the sale and development of smartphones being more and more complicated. Although obliged to diversify, the Chinese manufacturer could embark on the electric car and come to compete with Tesla.
As you are well aware, Huawei is still a victim of US trade sanctions. With the ban on sourcing components from American companies or foreign companies that use American technologies, the Shenzhen firm is stuck. And now that Huawei has sold all of its stocks of Kirin chips, the company hopes to be able to rely on the chips from Qualcomm.
Indeed, the founder has just made an official license request from the US government to collaborate with Huawei. The situation is so critical that Huawei has already started talks to resell part of its Honor subsidiary. Several companies like Xiaomi or TCL have shown interest.
After smartphones, Huawei could launch into the automotive industry
In addition to the difficulties in the smartphone market, Huawei continues disappointment after disappointment regarding contracts to deploy 5G. In fact, the Shenzhen firm has no other choice than to diversify and develop new activities. According to a report by Nikkei Asia, the manufacturer could launch into the electric automobile.
According to a source close to the company, Huawei aims to become one of the main suppliers of hardware and software for smart and connected vehicles. The Chinese firm has already started hiring employees from the main manufacturers and suppliers of auto parts. In addition, the automaker has reportedly boosted its capabilities to design almost everything needed to develop a smart car.
Huawei confident in its know-how
Xu Zhijun, one of Huawei's rotating chairmen, said: “Anything Tesla can do, we can do it ”. Here, the manager refers in particular to the Autopilot, ensuring that the autonomous driving system manufactured by Huawei would be more efficient than that on board the Tesla Model 3 and other models of the American manufacturer.
As a reminder, Huawei has never hidden its ambitions for the automotive market. In July 2020, for example, we learned that Huawei would integrate HiCar on many vehicles of Chinese brands. As a reminder, this is the manufacturer's house alternative to Android Auto. Earlier in June, Huawei confirmed the installation of its Kirin chips in the cars of Chinese manufacturer BYD.