Huawei Technologies targets to venture in driverless passenger car technology by 2025.
The company will invest $ 1 billion on researching self-driving and electric car technologies as well as speed up plans to compete with Tesla inc and Xiaomi corp in the world’s biggest vehicle arena.
The move is intended to help the China based company diversify its business following US sanctions.
Xu an executive from the company has said that Huawei will partner with three other automakers to make self-driving cars that carry the Huawei name as a sub-brand and that the company will keep its circle of partners small and get its logo onto cars .
He added that smart car business unit receives one of the heaviest investments from Huawei. That the company will invest more than US$1 billion in car component development this year. China adds 30 million cars each year and the number is growing. Even if the company doesn’t tap into the market outside of China, the company can earn an average 10,000 yuan from each car sold in China and that’s already a very big business for Huawei.
Huawei partners include BAIC Group, Chongqing Changan Automobile Co. and Guangzhou Automobile Group Co.
Huawei was banned in some countries following allegations that the company’s products may purposely contain security holes that China’s government could use for spying purposes as well as allegations that Huawei steals intellectual property from foreign technology companies.