Here are the two reasons why Huawei is not building cars and why it denies such reports

According to the latest information coming from China Automotive Industry Development Summit Forum, Huawei finally gave us the reasons behind its decision not to make car and investments in a car company.

Today, the China Automotive Industry Development Summit has been concluded. The President of BU Marketing and Sales and Service Department of Huawei, Chi Linchun illustrates that Huawei isn’t planning to make its own cars due to many elements.

The first reason that reveal, Huawei ICT business has enormous business affairs in European markets. Among them, Germany is the main region with immense automobile production business.

If Huawei starts making its own car brand then the company has to undeviatingly fight with local car companies and it’ll harm the business relations.

Chi explains the second reason that making a car is very complex compared to making a consumer product such as a smartphone. It needs huge investments, skilled workers, and other technologies that are different from the procedure of mobile manufacturing.

Currently, Huawei is in no position to manufactures the car and automotive, also, the company hasn’t any plan of being a shareholder of any car OEMs, nor offering and investments.

To be mentioned, it’s not the first time when Huawei has denied stepping into the car manufacturing industry or investing in it. Rather than making investments, Huawei likes to provide its ICT Technology to helps the automotive OEMs in making quality cars.

Previous Story:

Huawei’s rotating chairman, Xu Zhijun previously denied making cars saying Huawei doesn’t build cars but helps automobile companies to build good cars.

After that, Huawei also issues a public statement indicating, the company doesn’t invest in any car company nor planning to participate in shares. (Read Full Story)

(Via- Ithome)