Huawei deepens dive into EVs, seeks control of small automaker

China’s Huawei Technologies is in talks to take control of a small domestic automaker’s electric vehicle unit, two people with direct knowledge of the matter said, a move that would be a strategic shift for the world’s largest telecom equipment maker.

A company spokesman denied such a step, however.

Huawei, which has been battered by US sanctions, is in talks with Chongqing Sokon to acquire a controlling stake in the latter’s Chongqing Jinkang New Energy Automobile, said the sources.

The move will allow Huawei to make intelligent cars bearing its own nameplate, they added. Jinkang counts US EV brand Seres, formerly known as SF Motors, as its main asset.