ArenaEV.com ArenaEV.com

Facebook

Twitter

Instagram

RSS

Settings
Units
Power
Standard
Consumption
Currency

Log in

Login

I forgot my password
Sign up
ADVERTISEMENTS

Huawei's smart car arm IAS valued at $35 billion in latest stake talks

  • Post your comment
  • Comments (8)

Max McDee, 30 November 2023

Huawei

Huawei's venture into the EV market is poised for success as it garners serious interest from investors, including Changan Auto. The valuation of this innovative endeavor has now reached the staggering RMB 250 billion (approximately $34.7 billion), per the latest reports.

Huawei announced the decision to spin off its Intelligent Automotive Solution (IAS) business unit, which has been in operation for four years. The IAS unit aspired to become the Bosch of the intelligent EV era, focusing on cutting-edge automotive technologies. In this strategic move, the new company will inherit the IAS unit's core technologies and resources, setting the stage for groundbreaking developments in smart car technology.

Stake talks value Huawei's smart car arm IAS at $35 billion

Changan Auto, another prominent player in the automotive industry, and other major players are looking to acquire stakes in the new firm. And the talks are valuing the new entity at RMB 200 billion to 250 billion. State-owned automakers like FAW Group and Dongfeng Motor Group are also in advanced talks to acquire minority stakes in the venture.

Even as it welcomes new investors, Huawei intends to maintain a substantial presence in the venture. The tech giant is expected to remain the single largest shareholder, holding 40% to 50% of the new firm for at least the next two to three years. However, it's essential to note that deal specifics, including ownership distribution and valuation, are subject to regulatory approval.

It is a significant departure from Huawei's usual business model, where founder Ren Zhengfei and employees held ownership of its various ventures. The decision to spin off the smart car unit signals Huawei's willingness to adapt to evolving markets.

Stake talks value Huawei's smart car arm IAS at $35 billion

The decision to divest from the smart car business comes as Huawei faces challenges in growing this sector. Despite substantial investments totaling $3 billion and a dedicated R&D team of 7,000 employees, the unit reported revenue of only RMB 1 billion (just over $141 million) in the first half of 2023, a fraction of Huawei's overall earnings.

Huawei initially had high hopes for the smart car unit to drive new growth, but market dynamics have proven to be more complex than anticipated. This strategic shift allows the company to recover capital for research and development (R&D) and refocus its efforts to stay competitive in the rapidly evolving EV industry.

Stake talks value Huawei's smart car arm IAS at $35 billion

The new firm, as outlined by Huawei, will engage in a wide range of activities, including research and development, production, sales, and service of intelligent automotive systems and component solutions. This is a comprehensive approach and it reflects Huawei's ambitions to become a significant player in the smart car industry.

The potential relocation of the new firm's headquarters to Chongqing, a city known for its automotive industry, is another strategic move that aligns with Huawei's long-term goals. It is expected to facilitate the company's planned listing of the smart car unit, further strengthening its position in the market.

While specific leadership details remain undisclosed, Huawei's Richard Yu, who has overseen the smart car unit for years, is unlikely to lead the new venture.

Source

This article contains localized units and prices. Change settings.
Your choice
Related articles
  • Huawei's Aito electric cars debut in Europe Huawei's Aito electric cars debut in Europe
  • The Huawei-backed Luxeed updates two of its EVs The Huawei-backed Luxeed updates two of its EVs
  • Huawei teases new 7-in-1 powertrain for the upcoming Aito M8 Huawei teases new 7-in-1 powertrain for the upcoming Aito M8
  • Huawei and BAIC enter a new niche with the Stelato S9T electric wagon Huawei and BAIC enter a new niche with the Stelato S9T electric wagon

Reader comments

?
  • Anonymous
  • B0A
  • 04 Dec 2023

I'm sure they are willing to give your info as it is required by law in china then some random guy who just lives there

  • Reply
?
  • Anonymous
  • d@B
  • 01 Dec 2023

I don't live in any mentioned country, but I would be rather spied by China than criminal usa...

  • Reply
?
  • Anonymous
  • cTC
  • 01 Dec 2023

I do attack them and I'm smart enough to know it's not just the US, China but corruption , spyware happens in many other countries if you do your re search you would see that instead of just getting mad cause somebody mentioned where you l...

  • Reply
  • Read all comments
  • Post your comment
Total reader comments: 8

  • Home
  • Compare
  • News
  • Terms
  • Reviews
  • About us
  • Tesla
  • Volkswagen
  • Audi
  • Porsche
  • BMW
  • Mercedes
  • Hyundai
  • Kia
  • Genesis
  • Renault
  • Nissan
  • Ford
  • Volvo
  • Polestar
  • Jaguar
  • Toyota
  • Mazda
  • Mini
  • MG
  • Vinfast
  • Lucid
  • Rivian
  • Cadillac
  • Chevrolet
  • GMC
  • Subaru
  • Nio
  • Xpeng
  • BYD
  • [..]

EV finder

ADVERTISEMENTS

Latest models

  • ModelMercedes
    GLC 400 4MATIC
  • ModelBMW
    iX3 50 xDrive
  • ModelTesla
    Model Y Performance
  • ModelMercedes
    CLA Shooting Brake 250+
  • ModelHyundai
    Ioniq 6 N
  • ModelNissan
    Leaf 75kWh

Featured

  • 57 electric cars range tested at highway speeds - who wins? PART 2 57 electric cars range tested at highway speeds - who wins? PART 2
  • Xpeng P7 AWD quick review and drive Xpeng P7 AWD quick review and drive
  • Audi Q8 55 e-tron alternatives - BMW iX xDrive50 and Polestar 3 LR Audi Q8 55 e-tron alternatives - BMW iX xDrive50 and Polestar 3 LR
  • Comparison of NEDC, EPA and WLTP cycles Comparison of NEDC, EPA and WLTP cycles
  • Tesla Model S beats 28 cars for winter range test crown Tesla Model S beats 28 cars for winter range test crown
ADVERTISEMENTS

Reviews

  • 57 electric cars range tested at highway speeds - who wins? PART 2 57 electric cars range tested at highway speeds - who wins? PART 2
  • Zeekr 001 with 140 kWh Qilin battery real life range test results Zeekr 001 with 140 kWh Qilin battery real life range test results
  • Mini Cooper SE JCW review Mini Cooper SE JCW review
  • Polestar 2 Long Range AWD review Polestar 2 Long Range AWD review

Home News Compare About us RSS feed Facebook Twitter Instagram

© 2022-2025 ArenaEV.com Mobile version EV Finder Glossary Privacy Terms of use

From the team behind
GSMArena.com