Huawei is one of the world’s largest consumer electronics and telecommunications companies.
It is also the first global tech giant to emerge from China – a fact that has put a target on its back from governments wary of Beijing’s influence and motives. The United States, in particular, has imposed sanctions that have prevented the company from being incorporated using technology made in the United States – including Google’s Android platform – and pressured its allies to shut down. ‘they are looking elsewhere for high-tech telecommunications equipment.
With its global market share at risk, Huawei has focused more on the Chinese market, but it is apparently looking for other revenue options. The company recently announced its intention to supply vehicle operating systems to three Chinese manufacturers, but it would have even more interest in the automotive sector.
Reuters, citing people with knowledge of the matter, reports that Huawei is in talks to take control of two Chinese electric vehicle operations. In a series of talks, the company hopes to take over ArcFox, an electric vehicle brand owned by the BAIC group – which is said to be more interested in limiting Huawei to a minority stake.
As part of the other discussion, however, Huawei would acquire a controlling stake in the electric vehicle division of Chinese automaker Chongqing Sokon. The latest deal would allow Huawei to manufacture finished vehicles bearing its own brand – and would mark a significant shift in strategy for the company.
The deal, which could be concluded this summer, is also likely to affect the US auto market: Sokon’s signature asset, according to Reuters, is its US brand Seres, formerly known as SF Motors.