Huawei In Talks To Acquire Chinese Automaker: Report
3 May 2021 - motor1
Nothing is official yet.
In February this year, a report hinted about a possible shift towards the automotive industry for Huawei. Currently the world’s largest telecom equipment maker, in April, the Chinese firm announced it will start selling the Seres SF5 crossover, and now it seems that Huawei wants to deepen its automotive affair.
According to a new report, the firm is in talks with Chongqing Sokon to acquire a controlling stake in the Chongqing Jinkang New Energy Automobile. Reuters claims the information comes from “two people with direct knowledge of the matter said” though, obviously, it is not official yet. The Seres brand is considered one of the company’s main assets.
Reuters said both companies refused the rumors with a Huawei spokesman saying "Huawei is not making cars." He also added the tech giant is not looking to acquire controlling stakes, while Chongqing Sokon simply didn’t respond to the report.
Analyzers see Huawei’s potential entry into the automotive business as an opportunity for the company to compensate for the reduced smartphone business due to the US sanctions. Huawei recently announced deals with three Chinese automakers to supply its Huawei Inside vehicle operating system. The potential acquisition of a small car brand seems like the next logical step.
According to Reuters, Richard Yu is leading the talks for the potential acquisition of Chongqing Jinkang New Energy Automobile. Yu was one of the key executives behind Huawei’s rise and is currently responsible for its shift towards the automotive industry. It is believed that Huawei wants to finalize the deal as soon as July this year.
As for now, Huawei will continue selling the Seres SF5 crossover at some of its flagship stores around China. Prices start at 246,800 Chinese yuans (approximately $38,000 at the current exchange rates) for the 4WD model and 216,800 yuans ($33,361) for the 2WD variant.