Huawei’s smart car unit valued at US$16bil

BEIJING: Chinese tech firm Huawei Technologies Co.’s push into the electric vehicle market has received another boost, after an investment valued its auto solutions company at 115 billion yuan (US$16 billion/RM70bil).

Avatr Technology, an EV brand backed by state-owned carmaker Chongqing Changan Automobile Co. and battery maker Contemporary Amperex Technology Co. Ltd., paid 11.5 billion yuan to acquire a 10% stake in Yinwang Smart Technology Ltd., according to a stock exchange filing Tuesday. Huawei holds the remaining 90% of Yinwang.

The telco giant is taking strides into the EV industry as China promotes advanced manufacturing to become a new pillar of economic growth.

The diversification also comes at a time when Huawei is embroiled in US-China trade tensions, with its access to advanced semiconductors cut off and 5G network equipment banned in several Western countries because of national security concerns.

Huawei representatives have repeatedly said the company doesn’t make cars.

Yinwang was started in January to be the official entity for Huawei’s car unit and provides an automotive technology platform to automaking clients.

Changan’s Avatr brand boasts a sophisticated advanced driver assistance system that’s powered by a solution called Huawei Inside.

Huawei also operates the Harmony Intelligent Mobility Alliance, which contains EV brands such as Aito, made with Seres Group Co., and Luxeed, which is produced by Chery Automobile Co.

The alliance sees Huawei having a high degree of involvement in the product design and sales of the brands.