(Yicai Global) May 19 -- Huawei Technologies has picked its consumer business chief to lead the Chinese telecoms giant’s efforts in smart car solutions, which could spur much-needed growth amid slowing handset sales.

Richard Yu, credited with turning Huawei’s smartphone business into the world’s second biggest by market share, has been made chief executive officer of its smart vehicle solutions business unit, according to an internal company document seen by Yicai Global.

Yu will remain CEO of the Shenzhen-based firm’s consumer business group, but Zhang Ping’an will replace him as CEO of Huawei Cloud, a role Yu took up in early April. Wang Jun will join Yu at the smart vehicle unit in the capacity of president.

The expansion of Yu’s domain means the existing auto division within the consumer business unit, which makes handsets and computers, will be integrated with smart vehicle solutions, a company insider told Yicai Global. The move should revitalize the whole group as part of Huawei’s “self-rescue” efforts, the person added.

Yu has been involved in the tech giant’s car push for some time. Last July, he appeared at a launch event for BYD’s flagship model to announce Huawei's Harmony OS-based HiCar smart screen. On April 20, he chaired a meeting that considered a proposal to sell vehicles in Huawei stores.

Smartphone Setback

Huawei could use a new revenue driver as its global smartphone sales have slumped since the third quarter of last year amid restrictions on the company buying US-made technologies, including chips. That ban prompted Huawei to sell its Honor budget phone brand last November.

In the first quarter of this year, the firm’s global mobile phone shipments halved from a year ago, according to data from Strategy Analytics, pushing it out of the top five handset makers by global market share.

Many Chinese tech firms have revealed plans to enter the red-hot smart car sector, including phone maker Xiaomi and ride-hailing giant Didi Chuxing. But Huawei’s focus has been sharp as the firm has repeatedly said it will not make vehicles. Instead, the plan is to provide carmakers with next-generation technologies enabled by the emerging fifth-generation wireless connectivity.

Huawei is cooperating with three auto companies, Rotating Chairman Eric Xu Zhijun said at an event last month. Smart vehicles donning the Huawei Inside logo will be launched in the fourth quarter, he added.

“If you see the vehicle logo, you know that Huawei is involved,” Xu said. But only those carmakers that use Huawei’s self-driving tech will carry the brand name, he added.

Editor: Emmi Laine, Xiao Yi