Facing a Rough Patch, Huawei Considers Entering the Electric Cars Market


It is a well-known case that Huawei and the US are not the best buddies right now. Huawei suffered a trade ban that has, over the period, crippled most of its business.

The Chinese technology giant cannot do business with American companies, meaning it cannot get parts for its devices. That limit goes a long way because parts like chips constitute the hearts of products such as smartphones – a division that Huawei used to reap appreciable profits over the years.

At the same time, America has been pressuring its allies to stop using Huawei telecoms products and services. In a world where every operator is racing to build the best systems for 5G – the technology that Huawei says it helped pioneer, it is evident that the company is facing a rough patch.

Now, the company is planning to diversify its business because the future of its current portfolio is not bright.

Besides offerings its technologies for pig farming, the company is reportedly planning to build electric cars later in 2021.

The cars will be under its brand, and there is a rumour that some models will be out before the year ends.

At the moment, it is reported that Huawei has already started the design work and is working with suppliers, including Changan Automobile and BAIC Group’s BluePark New Energy Technology.

Huawei’s Head of Consumer Business Richard Yu has since said that the company is shifting its attention to something else, electric cars being at the top of its list.

However, the company has denied that it is not a car manufacturer. Still, it intends to use ICTs to be a digital car-oriented and components provider that would see producers make better cars.

The EV space has been a growing business, especially for Tesla that has since popularized electric vehicles. The space is also a tricky one because traditional carmakers such as Mercedes have yet to scratch the EV surface in the same manner that Tesla has.

Still, Chinese companies have never shied away from popular technologies, even if it means cloning them to the ground.

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Kenn Abuya is a friend of technology, with bias in enterprise and mobile tech. Share your thoughts, tips and hate mail at [email protected]