In Depth: Huawei’s Auto Ambitions Hobbled by Weak Sales, Unclear Strategy

Huawei Technologies Co. Ltd. is having trouble growing its fledgling smart driving systems business.

In February, the software giant suspended its auto business Chief Operating Officer Wang Jun, who also served as the president of its self-driving product line, a move which Caixin learned then was related to the poor progress in the commercialization of the auto unit’s HI, or “Huawei Inside,” smart car system.

Huawei announced its venture into the auto industry in 2019 as an attempt to offset the impact of U.S. sanctions on its smartphone and consumer electronics business. Since then, the firm has been adamant that it was not in the business to manufacture its own cars. It repeatedly dismissed speculation that it wanted to be China’s Tesla challenger, with founder Ren Zhengfei personally stepping in to clear any doubts.