Huawei in talks to acquire Chinese automaker

Huawei in talks to acquire Chinese automaker

May 3, 2021 0 By autotimesnews

Chinese mobile technology manufacturer Huawei is planning to acquire a local car brand. At the moment, no official data on a possible deal is known yet.

In February of this year, there were rumors of a possible shift towards the auto industry for Huawei. It is currently the world’s largest manufacturer of telecommunications equipment. The Chinese company announced sales of the Seres SF5 crossover in April, and now it looks like Huawei is looking to expand its auto business.

The firm is in talks with Chongqing Sokon to acquire a controlling stake in Chongqing Jinkang New Energy Automobile, according to a new report. Reuters claims that the information comes from “two people who are directly aware of what happened,” although this is obviously not official information yet. The Seres brand is considered one of the main assets of the company.

Reuters reported that both companies have denied the rumors, and a Huawei spokesman said that “Huawei does not make cars.”

He also added that the tech giant has no intention of acquiring controlling stakes, and Chongqing Sokon simply did not respond to comments.

Analysts see Huawei’s potential entry into the auto business as an opportunity for the company to offset the decline in smartphone sales due to US sanctions. Huawei recently announced deals with three Chinese automakers to supply its operating system for their vehicles. The next logical step seems to be a potential acquisition of a small car brand.

Negotiations are under way for a potential acquisition of Chongqing Jinkang New Energy Automobile, according to Reuters. For now, Huawei will continue to sell the Seres SF5 crossover in some of its flagship stores across China. Prices start at RMB 246,800. for the all-wheel drive model and 216,800 yuan for the 2WD variant.

Not so long ago, AutoTimesNews wrote that Chery and Huawei will create the car of the future together. The overwhelming majority of Russians are familiar with Huawei from its “mobile” business.