Huawei will invest $1 billion for the development of Self Driving technology

Currently, Huawei is going through very tough time because of the several sanctions imposed against the company by the United States. These sanctions restrict Huawei in the US. Huawei has shut down its high end chip production. The company also lost a good share of the smartphone market.

Since, Huawei is struggling with its telecom and mobile business segments, the company is moving trying to establish itself in the next big market; the market of Electric Vehicles and Self-Driving Technology. According to the latest news, Huawei will invest as much as $1 billion for the development of Self Driving technologies. This was reported by Bloomberg.

It should be noted that another Chinese smartphone company, Xiaomi is already working on its self-driving car technology to compete with the likes of Tesla. Huawei will join the list of competitors. Even Apple is also targeting the automobile industry. Tech giants are racing to make vehicles more autonomous, environment friendly, and connected.

A report conveys electric vehicle sales might jump as much as 50 percent this year in China. Huawei has clarified that it has no intention of make its own car but it is looking forward to supply its tech to car makers around the world.

Huawei has partnered with three automakers: BAIC Group, Chongqing Changan Automobile Co, and Guangzhou Automobile Group Co. Eric Xu, Huawei’s rotating chairman revealed that the cars launched will carry the Huawei name as a sub brand.

It is worth mention that in some aspects of technology, Huawei’s autonomous driving technology has already surpassed Tesla. Huawei have cruised for more than 1,000 kilometers without human intervention.

Eric Xu said: “The smart car business unit receives one of the heaviest investments from Huawei. We will invest more than $1 billion in car component development this year. China adds 30 million cars each year and the number is growing. Even if we don’t tap the market outside of China, if we can earn an average of 10,000 yuan from each car sold in China, that’s already a very big business for Huawei.”

So far, Huawei has already launched smart car connectivity products. Huawei’s information and entertainment technology can already be found in Mercedes Benz sedans. Huawei has partnered with companies like BAIC BluePark New Energy Technology Co. to develop smart car systems. The Arcfox αS HBT is the first model under the partnership. Arcfox αS HBT will be unveiled at Auto Shanghai in this month.