Before the restrictions on your communication technology, Huawei is already taking steps to expand its business range. Apparently, it has its eye on the electric car market. Information on the subject still differs, after all, the negotiations do not make it clear how the company intends to enter the sector. However, some informants have already reported some suspicions.

The news agency Reuters received information from people linked to the Chinese brand. Reports indicate that Huawei has plans to manufacture its own electric vehicles, and it is possible that it will launch the first model this year. According to sources, the company is already negotiating with the state-owned automotive company Changan to be able to use its facilities. Negotiations are also taking place with the producer of power sources for vehicles BluePark New Energy Technology (which belongs to the Chinese group, also owned by the state, BAIC).

Asked about plans to start producing electric cars, Huawei responded to Reuters through a representative. In the interview, the spokesman denied that the Chinese company was planning to produce its own vehicles. He also said that “what we want is to become a supplier of new components and digital products for automobiles.”

Huawei crises

The attempt to enter a new market is not a shift, but rather an expansion of the business. And there are very clear motivations for Huawei to want to try new ways to increase its cash flow. The manufacturer has faced problems with the government Trump, being banned (along with other “Chinese communist companies”) from the US on suspicion of espionage. And it seems that the current president plans to keep the barriers against Chinese businesses.

In addition, the company underwent a split in its smartphone production branches. The subsidiary Honor separated commercially and legally from Huawei and took the brand's cell phone lines with it, which had an impact on the manufacturer's numbers.