HUAWEI PLANS FORAY INTO E-VEHICLE MKT

HONG KONG/BEIJING: China’s Huawei plans to make electric vehicles under its own brand and could launch some models this year, four officials said, as the world’s largest telecommunications equipment maker, battered by US sanctions, explores a strategic shift.

Huawei Technologies Co Ltd is in talks with state-owned Changan Automobile and other automakers to use their car plants to make its electric vehicles (EVs), according to two people aware of developments. Huawei is also in discussions with Beijing-backed BAIC Group’s BluePark New Energy Technology to manufacture its EVs, said one of the two and a separate person with direct knowledge of the matter.

The plan heralds a potentially major shift in direction for Huawei after nearly two-years of US sanctions that have cut its access to key supply chains, forcing it to sell a part of its smartphone business to keep the brand alive. Huawei was placed on a trade blacklist by the Trump administration over national security concerns.

Many industry executives see little chance that blocks on the sale of billions of dollars of US technology and chips to the Chinese company, which has denied wrongdoing, will be reversed by his successor. A Huawei spokesman denied the company plans to design EVs or produce Huawei branded vehicles. “Huawei is not a car manufacturer. However, through ICT (information and communications technology), we aim to be a digital caroriented and new-added components provider, enabling car OEMs to build better vehicles.”

Huawei has started internally designing the EVs and approaching suppliers at home, with the aim of officially launching the project as early as this year, three of the sources said.

BAIC BluePark did not respond to repeated requests for comment.