Huawei Spins Off EV Unit

Estimated read time 1 min read

In an effort to further expand its smart car business, Huawei Technologies has registered Shenzhen Yinwang Intelligent Technology as a new company with a registered capital of RMB 1 billion ($140 million). The newly formed company, which is fully owned by Huawei, intends to foster more cooperation with automakers by integrating its automotive business unit and spinning it off into a distinct entity. In pursuit of a diversified ownership structure, Huawei and its partners are currently deliberating over specific investment terms in the new company.

The action was taken in response to Huawei’s announcement that it would establish a joint venture with state-owned automaker Changan Auto, utilising resources and key technology from its Intelligent Automotive Solution business unit. The new company may be called “Newcool” and will welcome cooperation from other automakers. Following three years of rapid acceleration of its automotive ambitions, the news represents another significant achievement for Huawei.

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E.F Team

Our team at Eastern Finance is made up of young and knowledgeable professionals who are here to provide you with business news from an eastern perspective.

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