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Huawei plans to start making cars - sources

It's known as a maker of smartphones.

But two years of U.S. sanctions have battered Huawei.

It's had to sell one unit to keep the phone brand alive.

Now the Chinese giant is thinking about a big shift.

Reuters sources say it's planning to make electric vehicles.

Some models could even launch this year.

The sources say the firm is in talks with state-owned Changan Automobile and other makers.

It reportedly wants to use their factories to build its cars.

Huawei has denied the reports, saying it just wants to work with automakers on in-car technology.

But three sources say the firm has already started designing EVs, and approached suppliers.

None of the automakers mentioned by the sources would comment.

But shares in Changan's main listed unit surged as much as 8% after the Reuters report.

Huawei may not be the only tech firm to pivot into cars.

Apple is reported to be planning an electric vehicle, which could launch as soon as 2024.

Shares in Kia jumped 3% Friday (February 26) after South Korean media reports said it might build the car.

Meanwhile iPhone assembler Foxconn said this week it was teaming up with U.S. startup and would-be Tesla rival Fisker.

Video Transcript

- It's known as a maker of smartphones, but two years of US sanctions have battered Huawei. It's had to sell one unit to keep the phone brand alive.

Now the Chinese giant is thinking about a big shift. Reuters sources say it's planning to make electric vehicles. Some models could even launch this year. The sources say it's in talks with firms including state-owned Changan Automobile, which has already tested its own self-driving vehicles.

Huawei reportedly wants to use their factories to build its cars. The company has denied the reports, saying it just wants to work with automakers on in-car technology. But three sources say it has already started designing EVs and approached suppliers. None of the automakers mentioned by the sources would comment, but shares in Changan's main listed unit surged as much as 8% after the Reuters report.

Huawei may not be the only tech firm to pivot into cars. Apple is reported to be planning an electric vehicle which could launch as soon as 2024. Shares in Kia jumped 3% Friday, after South Korean media reports said it might build the car. Meanwhile, iPhone assembler Foxconn said this week it was teaming up with the US startup and would-be Tesla rival Fisker.