Huawei confirms electric car plans under its own brand

Huawei confirms electric car plans under its own brand

The rumor that Huawei plans to have electric cars built under its own brand has now been officially confirmed. As Huawei CEO Eric Xu told analysts, Huawei plans to invest $1 billion in researching technologies for automated electric cars.

For the equivalent of 840 million euros, the technology group wants to develop the vehicles itself, but not build them. For the production of the cars, which will be marketed under the sub-brand Huawei, the electronics giant wants to cooperate with three Chinese carmakers, specifically with BAIC, Changan and GAC.

Huawei is very confident in its automated driving features, where Xu told analysts that it has already surpassed Tesla in some areas. "I don't know if they're bragging, but my team said they can make cars drive on their own for 1,000 kilometers without human intervention," Xu said. "That's much better than Tesla." However, the details of the claims made at the investor conference - especially in the comparison Xu made to Tesla - cannot be confirmed.

Huawei apparently sees China as its primary sales market for now. "In China, 30 million new cars hit the road every year," Xu says. "Even if we don't tap the market outside China, if we can earn an average of 10,000 yuan from each car sold in China, that's already a very big business for Huawei." 10,000 yuan is equivalent to 1,278 euros.