In February of this year, a report hinted at a possible shift towards the auto industry for Huawei. Currently the world’s largest maker of telecommunications equipment, in April the Chinese company announced it would start selling the Seres SF5 crossover, and now it looks like Huawei is keen to deepen its automotive business.
According to a new report, the company is in talks with Chongqing Sokon to acquire a controlling stake in Chongqing Jinkang New Energy Automobile. Reuters claims that the information comes from “two persons with direct knowledge of the matter stated” although, obviously, this is not yet official. The Seres brand is considered to be one of the main strengths of the company.
Reuters said the two companies have denied the rumors with a Huawei spokesperson saying “Huawei does not make cars.” He also added that the tech giant was not looking to acquire controlling stakes, while Chongqing Sokon simply did not respond to the report.
Analyzers see Huawei’s potential entry into the automotive sector as an opportunity for the company to compensate for reduced smartphone activity due to US sanctions. Huawei recently announced agreements with three Chinese automakers to provide its Huawei Inside vehicle operating system. The potential acquisition of a small brand of car seems like the next logical step.
According to Reuters, Richard Yu is leading discussions for the potential acquisition of Chongqing Jinkang New Energy Automobile. Yu was one of the key leaders behind the rise of Huawei and is currently responsible for its transition to the automotive industry. It is believed that Huawei wants to finalize the deal as early as July of this year.
For now, Huawei will continue to sell the Seres SF5 crossover in some of its flagship stores in China. Prices start at 246,800 Chinese yuan (about $ 38,000 at current exchange rates) for the 4WD model and 216,800 yuan ($ 33,361) for the 2WD variant.