Huawei revs up a new way to feed the beast

Huawei is revving up its auto business. It could help rustle up cash for research into semiconductors, artificial intelligence and more, after geopolitical tensions and U.S. sanctions lopped 28% off total revenue between 2020 and 2022. But its cars venture must navigate those same potholes.
The company founded by former military engineer Ren Zhengfei is better known for mobile phones than automobiles. The Huawei Investment and Holding group’s last annual report even states “Huawei doesn’t make cars”.

Yet it has invested at least $3 billion in its Intelligent Automotive Solution unit, and by 2022 some 7,000 researchers were honing technology for internet-connected electric vehicles, including an operating system, lidar, cameras and digital keys. In China, Huawei-branded showrooms display models developed alongside manufacturers such as Seres (601127.SS), opens new tab. The pair’s Aito M7 SUV, launched in September, attracted 80,000 orders in 50 days, Bloomberg reports, opens new tab.

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