Analysing the reasons for Huawei currently strategy on cars business

Abstract

Since the 21st century, people’s demand for new energy has become increasingly high, and new energy vehicles have become a promising emerging industry. The purpose of this study was to find out why Huawei only collaborates with car companies but does not manufacture its own cars. This research applied data and information from Huawei’s research and development investment, revenue data, and sales in the new energy vehicle market for analysis. The analysis’s results showed that one of the main reasons was that Huawei’s business focus is not on car manufacturing, and the article suggested that Huawei should focus on technology development and upgrading. The second reason was the fierce, cutthroat competition in the market, and this paper suggested that Huawei strengthen cooperation with automobile enterprises. The third reason was that the cost of making cars alone is too high, and Huawei is advised to wait for a good time before making cars. This article filled some of the research gaps on Huawei and can provide relevant industry practitioners with some reference for analysing the new energy vehicle market and enterprise development strategies.