It only took Huawei four years to become a force in smart car technology, navigating the devastation of trade penalties on its smartphone sector while also inventing a driver assistance system that was the highlight of the Beijing auto show.
Huawei Technologies
Huawei Technologies has two massive booths at this week’s exhibition, and at least seven Chinese automakers are pushing its Qiankun as the most advanced driver assistance system (ADAS) to date.
Even Volkswagen will equip its China-made, China-bound Audi Q6L e-tron with Qiankun when it launches in 2025, in Huawei’s first arrangement with a foreign automaker, according to two sources familiar with the situation.
Nissan CEO Makoto Uchida’s interest was peaked when he visited a Huawei booth and listened to staff discuss the technology built for the Seres automobile on show.
A Nissan representative said Uchida was touring booths and had no comment on the possibility of a Huawei partnership.
Audi stated that it does not comment on suppliers. Huawei did not immediately respond to a request for comment.
U.S. Export Limits
Huawei’s quick emergence as a components supplier underlines the telecommunications equipment maker’s search for new revenue streams after U.S. export limits imposed on national security grounds in 2019 hurt its industries, particularly smartphones.
It says it wants to be a top-tier automotive supplier for the intelligent EV age, competing with Bosch, Denso, and Continental.
“We have grown side-by-side with Huawei for three years, and our achievements are obvious to all. We will continue to work side by side for the next three years and more,” said Chairman Zhang Xinghai of Dongfeng-backed Seres, whose Aito ranked sixth among new energy brands in China in the January-March quarter.
Increasing rivalry
Huawei’s market debut has been aided by the industry’s rapid expansion, with legacy automakers striving to keep up with EV manufacturers like as BYD (002594.SZ), opens new tab, which are fitting one-time luxury features into cars as little as $20,000.
Private EV manufacturers, such as BYD, have proven effective at creating high-tech competence in-house, whereas state-owned mainstays have failed to innovate, relying on companies like Huawei to increase competitiveness, analysts said.
Changan, Dongfeng, and BAIC, all state-owned companies, are fighting back with new EV brands including Avatr, VOYAH, and Arcfox, all of which use Huawei’s ADAS.
Guangzhou Automobile
Guangzhou Automobile (GAC) will also launch flagship cars under the Trumpchi brand in 2025, using Huawei’s smart vehicle technologies.
“Huawei is currently leading in ADAS technologies,” GAC General Manager Feng Xingya told reporters on Thursday.
“We chose them because we must make sure GAC products are equipped with the most advanced technologies for consumers.”
Western Governments
Despite challenges with Western governments, three managers at international automakers believe Huawei is a possible partner worth seriously considering for foreign brands in China.
The ability to manufacture its own chips adds to its attraction, as decoupling may result in additional trade restrictions that would otherwise damage China’s tactics, according to the management.
“Automakers may end up partnering with Chinese firms to provide driving automation for vehicles aimed at Chinese markets.”
ADAS Providers
According to Evangelos Simoudis, an investor and corporate adviser, Huawei can take advantage of such chances, whereas other ADAS providers, such as Bosch, may not have them in China in the same manner they have in Europe or the United States.
Supplier or Peers
However, Huawei has been significantly involved in the development and promotion of Seres Aito and other vehicles, which the three managers and a fourth person claim has created industry concerns that Huawei is not only a provider but also a competitor.
This year, the company also had a computing component supply shortage, causing delays in the delivery of key models such as the Seres Aito M9, Changan Avatr 12, and Chery Luxeed S 7. None of Huawei’s carmaker partners have indicated plans to export vehicles featuring Huawei technology.
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