Huawei sets up new smart car company as it gets more serious about autos

Huawei has set up a separate smart car unit, in another stride forward in the Chinese tech giant's plans to make a splash in the automotive world.

The company incorporated Shenzhen Yinwang Intelligent Technology Co Ltd on Tuesday in the southern Chinese city of Shenzhen, where Huawei is based.

The new firm is wholly owned by Huawei and will focus on the "manufacturing and sales of intelligent car systems and equipment," according to Tianyancha and Qichacha, two corporate data providers in China.

The business has registered initial capital of 1 billion yuan (about USD140.5 million) and shares the same address as Huawei's headquarters, according to the data providers.

The news marks another milestone for Huawei, which has accelerated its automotive ambitions in the past 3 years.

Huawei's new business, however, appears to already have won a big backer.

In Nov, a subsidiary of Changan, a Chinese state-owned automaker, disclosed that it had partnered with Huawei to form a new company created to provide smart car systems.

According to a filing made to the Shenzhen stock exchange by Chongqing Changan Automobile Co, Huawei would set up the firm, which would focus on digital platforms inside the car and other automotive systems and components.

Huawei and Changan did not immediately respond to requests for comment on Thu. It's unclear whether Shenzhen Yinwang is part of the November agreement.