Chinese tech giant Huawei on Monday reiterated that the company has not and will not invest in auto companies, sending shares of many automakers plunging.

"We have identified our long-term strategy of not making cars since 2018, and it has not changed," Huawei said in a statement.

The company said the auto industry does not need Huawei-branded cars, but rather its information and communication technology (ICT) technical capability. In this way, Huawei serves as a provider of digital auto parts.

The company also said it would not control or hold shares of any automakers, dispelling recent rumors about Huawei making cars or holding shares of automakers.

"We choose BAIC, Chang'an Auto, and GAC Motors to be our strategic partners to support their sub-brands. Cars that adopt Huawei autonomous driving solutions can only use the HI logo, which means Huawei Inside, after they are authorized by Huawei," said the statement.

As for the cooperation with Seres, Huawei said it is the supplier of electronic components for Series SF5 models. Also, the company wants to support the business of some of its flagship outlets which face difficulties due to a short supply of smartphones by allowing them to sell the car models.

Auto shares massively plunged on Monday, with Chang'an Auto, BAIC BluePark reaching a limit down, and Xiaokang shares falling 6 percent.