Huawei denies the rumor that the company will manufacture EVs

In the last week of February 2021, there were interesting news about electric vehicles (EVs). Huawei, a Chinese telecommunication giant, might enter the EV market. There are several rumors that other smartphone manufacturers such as Apple and Xiaomi might do as well. Therefore, some people can expect that Huawei is without exception. However, Huawei’s staff denies the rumor and mentioned in the following way.

“Huawei is not a car manufacturer. However, through Information and Communications Technology, it aims to be a digital car-oriented and new-added components provider. It enables car manufacturers to build better vehicles.”

Who is Huawei?

Based on Huawei’s homepage, Huawei is a Chinese multinational telecommunication company and was founded in 1987. The company provides information and communications technology (ICT) infrastructure and smart devices. It has more than 194,000 employees and operates in more than 170 countries and regions. The company serves more than 3 billion people across the globe.

Huawei’s vision and mission is to bring digital to every person, home and organization for a fully connected, intelligent world. To realize them, the company improves connectivity and promotes equal access to networks through its cloud services and artificial intelligence. Thanks to its products and services, everyone in the world can enjoy superior computing power anywhere, anytime.

Huawei tries to build digital platforms to help all industries and organizations become more agile, efficient, and dynamic. In addition, the Chinese telecommunication giant redefines user experience with AI and makes more personalized in all areas.

EV is necessary to compensate for the loss of smartphone sales

As we see the other article about Xiaomi’s Mi Car project, electric vehicles might be the next smartphone. Therefore, it would make sense that Huawei competes with other smartphone makers including Apple and Xiaomi in the EV market. In addition, the Chinese telecom giant has already decided to let Honor brand go.

Huawei sold more than 70 million smartphones as Honor brand, so this decision has a huge impact on its sales. In 2018, Huawei sold more than 200 million smartphones and the number was highest (almost 240 million) in 2019.

However, due to the trade war, the number became around 189 million in 2020. To make matters worse, it will be almost 80 or 90 million in 2021. If we compare the number between in 2019 and 2021 (expected number), the sales might be one-third. Thus, Huawei should find other fields to earn both revenue and profit.

Huawei’s Research and Development

Research and Development (R&D) is one of Huawei’s strengths and the numbers are phenomenal. The company invests more than 10% of revenue in its R&D. More than 45% of employees, which is about 70 thousands, are involved in R&D as well. The Chinese telecom giant has 16 R&D facilities, 28 co-innovation centers and 45 training facilities all over the world.

Therefore, if Huawei takes actions to manufacture electric vehicles seriously, a small number of companies will be able to compete with it in terms of R&D. Of course, the rumor shows that it denies the possibility, but there is no smoke without fire. Thus, we will not be surprised if Huawei announces its own EVs in the next few years.