US sanctions have easy thwarted Huawei’s ambitions in the past few years. According to South china morning postThe Chinese company decides to stop focusing only on 5G and semiconductors participate in the development of autonomous vehicles.
Autonomous vehicles instead of smartphones?
The autonomous car has been a topic Huawei has been interested in for several years. In 2018, the Chinese giant developed the first prototypes together with Audi. At the beginning of 2020, Huawei confirmed its desire to gain a foothold in the autonomous driving market Development of own technologies in order to then sell them to manufacturers the whole world. Given that the Chinese company is facing a number of sanctions that are hampering its business, it seems time for Huawei to move into the autonomous vehicle market.
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Huawei says it will “Bringing digital technology within reach of every car”. Beijing is encouraging its tech giants to enter this market. The most famous actor in this part of the world is certainly Didi Chuxing. The company claims it will have a million autonomous taxis in service by 2030. An offer that is already available in Shanghai and soon also in Beijing and Shenzhen. Baidu has also been testing autonomous vehicles for at least three years. Not to mention Alibaba and Tencent … in short, Huawei will face increasing competition.
Huawei currently has no profitability target
While some experts believe that Huawei’s official entry into the autonomous vehicle market could lead to it technological breakthroughs that would accelerate the use of self-driving cars and other types of intelligent vehicles, others fear that the Chinese giant will displace smaller players. The announcement comes as Huawei’s core business, telecommunications and smartphones, has been badly affected by US sanctions has prevented the company from acquiring key software and components since 2019.
Richard Yu Chengdong, architect of Huawei’s rise as the global leader in smartphones over the past two decades, has taken over the leadership of the company’s self-driving car division. Autonomous vehicles in the future could well become the first source of profitability for Huawei, although a spokesperson states: “We have enough patience to invest in the sector and there is no need for short-term profitability.”.
It is interesting to watch the technologies developed by Huawei in its autonomous vehicles almost all of them are derived from his telecommunications activities. Chen Jiana, automotive analyst, says: “Information and telecommunications technologies are Huawei’s main strengths in the autonomous vehicle space. The company knows exactly how useful it will be in this new market. “.