ZTE Motors into Smart Cars with Acquisition, $2 Billion Investment

An advertisement showing Granton's bus model is exhibited at the Beijing Exhibition Center during the 5th China International Exhibition of Electric Vehicles, New Energy Vehicles and Leisure Sports Vehicles on July 15, 2009. Photo: Visual China

(Beijing) — Telecom-equipment and smartphone company ZTE Corp. has purchased a small maker of buses and will build an affiliated $2 billion manufacturing base as part of its new move into smart and new-energy vehicles, an executive told Caixin.

The company's purchase of a controlling interest in Granton Bus follows more than a year of negotiations and cost ZTE "hundreds of millions of yuan," according to a knowledgeable source. It comes as ZTE faces stiff competition in both its older telecom-networking equipment and also its newer smartphone business.