Chinese mobile communications giant Huawei Technologies Company plans to enter the autonomous driving and intelligent vehicle technology segments to strengthen its presence in new growth industries, according to local reports.

The company said it would invest US$1bn to develop smart driving technology, including software and components, to “help carmakers better embrace connectivity and intelligence”.

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Deputy chairman Xu Zhijun said in a statement: “The automotive sector will be the most disruptive industry over the next decade.”

The company plans to scale up its investments in components and systems for intelligent vehicles, especially autonomous driving technology.

The company confirmed it had no plans to produce electric vehicles, like its domestic rival Xiaomi Corporation, choosing instead to focus on developing new technology by leveraging its expertise in communications.

Huawei recently worked with Beijing-based BAIC Group to help it develop intelligent systems for its premium electric car brand Arcfox.

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