Huawei has launched a new smart car business to boost its automotive ambitions, having previously announced a joint venture with Chinese state carmaker Changan.
The Chinese telecom giant, which has been sanctioned by the US, has set up a new company called Shenzhen Yinwang Intelligent Technology with a registered capital of $140 million, which is wholly owned by Huawei.
According to records from Tianyancha industrial and commercial registration information platform, the new company's business includes intelligent automobile equipment manufacturing, artificial intelligence integration services, software development, artificial intelligence and other fields.
Huawei had already signed a cooperation agreement with Changan Automobile, a major state-owned automaker, in November to create a new joint venture for smart cars.
According to this cooperation, Huawei plans to transfer its intelligent vehicle systems business to a new company in which Changan invests, and integrate Huawei's core technologies and resources for intelligent vehicle solutions into the new company.
Huawei's automotive division has formed a joint venture to bring better smart car solutions to the industry.
The telecom giant currently owns 100% of the new company, but is also welcoming other industry partners to join it to create a diversified technology platform.
Yu Chengdong, CEO of Huawei's consumer division and head of its smart car solutions business unit, invited Chinese automakers Sirius, Chery, JAC and BAIC to participate in the joint venture in November.
The four companies are currently working with Huawei to develop new brands under the so-called Huawei Select model, where the smartphone giant works closely with companies on everything from product design to sales.
These brands include Ito and Ceres as well as Luxid and Chery.
The bold move comes amid Huawei's increasing focus on the automotive industry, a strategic focus for the company as its core telecommunications business is affected by US sanctions.
The company is moving into smart cars, a particularly notable move given the current auto industry landscape where traditional car manufacturing is increasingly intertwined with cutting-edge technology.
With this step, Huawei is at a crossroads and wants to leverage its technical capabilities in artificial intelligence, communications and other fields to drive innovation in smart cars.