China’s Huawei Pledges to Invest $1B on Electric Car Tech

Chinese tech developer Huawei has pledged to invest $1 billion on self-driving and electrically powered vehicles in an attempt to compete with Tesla and Xiaomi Corp.

Huawei has already made headway in the self-driving vehicle market, and boasts that their systems will allow vehicles to cruise for more than 600 miles without human input according to Rotating Chairman Eric Xu.

The next steps for Huawei will involve partnering with Chinese auto makers according to Xu, offering to be a sub-brand under the automaker in exchange for their self-driving systems. 

Huawei has already partnered with BAIC Group, Chongqing Changan Automobile Co. and Guangzhou Automobile Group Co.

According to Xu, Huawei’s smart car division will see “one of the heaviest investments” this year, citing that China adds 30 million vehicles to the road annually and that the market will only continue to grow. Xu estimates that even if sales remained strictly domestic, Huawei could capitalize on a 10,000 yuan ($1,527)  profit per vehicle sold.

The decision to invest in electric and self-driving vehicles comes after a year of losses brought on by stiff tariffs from the Trump administration. Huawei’s smartphone business was severely impacted, and efforts to further chip-making and networking were also affected.

The Chinese tech developer is hopeful that the Biden administration will reverse course on their current relationship as they invest in heavy growth areas like smart agriculture, health care, and electric vehicles.

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