(Yicai Global) May 24 -- “We stress again that Huawei will not make cars,” Huawei Technologies said today, dispelling rumors that the Chinese telecoms giant has invested in Beijing Automotive Group’s new energy vehicle unit and Chang’an Automobile, causing their stock to tumble.

The share price of both BAIC BluePark New Energy Technology [SHA:600733] and Chang’an Auto [SHE:000625] crashed by the exchange-imposed daily limit of 10 percent today to CNY17 (USD2.64) and CNY22.50 (USD3.50) respectively. Shares in Chongqing Sokon Industry Group, another car industry partner, [SHA:601127] tanked 6.02 percent to close at CNY54.20 (USD8.43).

Huawei does not hold a majority stake in any vehicle manufacturer and has no plans to either, the Shenzhen-based tech giant said. The auto industry needs Huawei’s 30 years of experience in information and communication technology to build intelligent connected cars of the future, rather than Huawei-branded autos, it added. Huawei decided on this strategy in 2018 and there has been no change.

Instead, Huawei is helping BAIC BluePark, Chongqing, southwestern Sichuan province-based Chang’an and Sokon Industry to develop their own electric car marques using Huawei’s autonomous driving solutions.

The Arcfox Alpha S model, the latest offering from BAIC BluePark, is the first smart auto to boast the full Huawei Inside system, including the Harmony operating system, lidar and fifth-generation wireless connections. Deliveries should start in the fourth quarter.

Chang’an’s joint venture with electric car startup Nio is built with Huawei software and was recently renamed as Avatar Technology.

Huawei also supplies electric parts and HiCar cockpit components to Seres SF5 vehicles made by Jinkang Seres, a subsidiary of Chongqing-based Sokon, it added.

Editor: Kim Taylor