rotating chairman Xu Zhijun said in a media interview on September 25 that there is no consideration of investment or a joint venture with automotive companies.

Xu Zhijun revealed that at present in the smart car solutions BU has invested 500 million US dollars, in the short term Huawei did not consider the profitability of the automotive business.

"At Huawei, a profit cycle is 8 years, there is no discussion at all about the profitability of the automotive BU," said Xu Zhijun. "But we see this is an opportunity, and if we do well, the future revenue generated for the company will be huge. If you can't make money, you just don't have the skills."

Earlier this month, WeChat account HD-Auto cited sources as saying that Huawei is interested in taking a stake in Chinese new energy vehicle company Changan .

If this becomes a reality, Huawei may not necessarily fund it directly, but may invest through its funds, the report added.

Changan NIO was established in August 2018 by Changan Automobile and NIO, with Changan and NIO each holding a 50 percent stake. However, NIO has largely exited due to various reasons.

HD-Auto reported that taking a stake in auto manufacturing is not the same as making cars directly and that strategic synergies and deeper cooperation should be more important considerations.

The report also says that it's not impossible for Huawei to explore a new business model for the partnership.

Huawei today also unveiled a new generation of MDC intelligent driving computing platform series: the MDC 210 and MDC 610, which can provide 48 and 160 TOPS of computing power, respectively, to provide economical and practical computing resources for L2+, L3~L4 levels of automated driving.

The MDC series products, with consistent physical size, can support smooth replacement and upgrade of computing platforms during the life cycle of an intelligent vehicle.