Chinese technology giant Huawei established Shanghai Huawei Digital Energy Technology Co on Aug. 6 with a registered capital of RMB 20 million ($3.09 million), according to data provider Qichacha.

The company's business scope includes online energy metering technology research and development, online energy monitoring technology research and development, power industry high-efficiency energy-saving technology research and development, emerging energy technology research and development, and energy recovery system research and development.

The establishment of the new company heralds Huawei's R&D in electric vehicle power and further march into the automotive field.

Previously there were several rumors that Huawei would be involved in building cars, but they were denied by the company.

Huawei had reaffirmed in a statement released on May 24 that Huawei is not building cars, a long-term strategy that was made clear in 2018 and has not changed.

"We believe that what the industry needs is not Huawei-branded cars, but Huawei's ICT technology capabilities accumulated over three decades in order to help car companies build future-proof cars," the statement said, adding, "That is, we provide car companies with Huawei-based ICT capabilities for smart connected car components."

So far, Huawei has not invested in any car companies and will not invest in any car companies in the future, let alone hold or participate in them, Huawei said.

"In the future, anyone who says Huawei is building cars, or taking a stake in the car manufacturing industry, is false news, so please don't believe it," the company said.

In Huawei's partnership with Seres, a subsidiary of Chongqing Sokon, Huawei is the supplier of electric components and HiCar cockpit components for the Seres SF5, the statement said.

To address the survival of Huawei-authorized cell phone retail stores in the face of a significant reduction in Huawei phones, Huawei is supporting some of the retail stores to sell the car, with the retail stores receiving corresponding revenue, the statement said.

Since 2021, Huawei has registered a number of automotive-related patents, has accumulated technology in autonomous driving, and has applied for a large number of patents.

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