Huawei Technologies Co. is planning to manufacture electric cars under its own brand, Reuters reported.
The Chinese tech giant could roll out some models this year citing people with knowledge of the matter. Huawei is in talks with several carmakers to use their plants to manufacture EVs.
A Huawei spokesman denied the company plans to design EVs or produce Huawei branded vehicles.
“Huawei is not a car manufacturer. However, through ICT (information and communications technology), we aim to be a digital car-oriented and new-added components provider, enabling car OEMs (original equipment manufacturers) to build better vehicles.”
Huawei has struggled to keep growing its consumer electronics business after Trump-era sanctions cut off the supply of vital semiconductors and other components. Its billionaire founder Ren Zhengfei has vowed to keep making smartphones, even after the company sold its budget Honor brand at the end of last year.
Huawei has previously developed technologies for EVs including in-car software systems, sensors and 5G communications hardware.
China’s technology companies are among some of the newest entrants into the increasingly crowded electric vehicle market.
Sales of new energy vehicles (NEVs), including pure battery electric vehicles as well as plug-in hybrid and hydrogen fuel cell vehicles, are expected to make up 20% of China’s overall annual auto sales by 2025. According to official Chinese patent records Huawei was awarded at least four patents related to EVs this week, including methods for charging between electric vehicles and for checking battery health.