Huawei, a Chinese technology company that does not want to become an automaker, has become a major supplier of automotive components in China. The company announced that it would be transferring its automotive components business to a new legal entity that will be open to other partners.
The new entity, which will be called Huawei Automotive, will bring together Huawei’s automotive components activities, including cockpits, electric platforms, electronic architecture, augmented reality head-up displays, lighting, connectivity, and cloud services.
Huawei has already received a 40% stake from the Chinese automaker Changan. The company hopes that other automakers will join its capital in order to standardize certain components and create a true Chinese champion of automotive components.
The creation of Huawei Automotive is a major step for the Chinese company. It will allow it to strengthen its position in the Chinese automotive industry and position itself as a serious competitor to the global leaders in automotive components.
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