After Xiaomi introduced its entry into the good electrical car enterprise, Huawei now reveals its plans to take a position $ 1 billion in analysis and growth of electrical automobiles and autonomous driving applied sciences. To attain its objective of coming into this market house, the corporate will associate with three automakers in China, which can launch automobiles with the Huawei title as a sub-brand.
Previously two years, Huawei has confronted a lot of challenges within the smartphone market, because the earlier US authorities led by Donald Trump imposed numerous sanctions on the corporate. This has pressured Huawei to orient its enterprise in direction of different markets reminiscent of good agriculture, healthcare and electrical automobiles.
A number of smartphone makers have already made investments within the electrical car house, together with giant firms like Apple and Xiaomi. One in every of Huawei’s benefits is that it has already managed to permit automobiles with its autonomous driving expertise to journey greater than 1,000 kilometers with out human intervention.
In the intervening time, the three firms that Huawei will associate with are Chongqing Changan Car Co, BAIC Group and Guangzhou Car Group Co.
Commenting on this funding, Chairman Eric Xu mentioned: “The good automotive enterprise unit receives considered one of Huawei’s largest investments. This yr we’ll make investments greater than $ 1 billion within the growth of automotive parts. China produces 30 million of automobiles a yr and the quantity is growing. Even when we don’t attain the market outdoors of China, if we will earn a median of 10,000 yuan for every automotive offered in China, that can already be an excellent deal for Huawei.