Shanghai, China – November 12, 2023 – On November 12, 2023, customers experienced the first smart pure electric vehicle Luxeed S7 at the Huawei flagship store in Shanghai, China. (Photo: Costfoto/NurPhoto via Getty Images)
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BEIJING — Chinese telecoms and smartphone giant Huawei is doubling down on efforts to sell its technology in the fiercely competitive electric vehicle market.
The company emphasizes that it does not make cars. Instead, it sells technology components such as the Hongmeng operating system and driver assistance products, or partners with automakers to create new electric vehicle brands.
Huawei confirmed on Tuesday that it is working with at least four traditional Chinese automakers to develop new car brands, following news of joint ventures with the country over the weekend. Changan Automobile For automotive technology.
Changan and Huawei have become partners in the Avatr electric vehicle brand, which was created in 2018 with the electric vehicle battery giant Contemporary new energy technology. The Avatr SUV and sedan each cost just over $42,000.
Huawei is also working with Chery on the Luxeed electric car brand, which on Tuesday revealed details of its S7 sedan.
Similar partnerships BAIC Motor Yu Chengdong, head of Huawei’s automotive-related and consumer business, said at a Luxeed conference on Tuesday that cooperation with JAC is ongoing.
BAIC Group’s Arcfox electric brand already uses Huawei technology, and JAC did not immediately respond to a request for comment.
Tu Le, founder of Beijing-based consultancy Sino Auto Insights, said Chinese automakers whose products “lack the technology needed to compete appear to be more than happy to use Huawei’s technology to fill the gap.”
“It’s too early to tell how (Huawei’s) solution will stack up against competitors, but like many other technology companies, they saw an opportunity and went for it,” he said.
TencentWeChat, which operates Chinese social media app WeChat, claims it supplies automotive technology to BMW and some other automakers.
Chinese smartphone and home appliance companies Millet It plans to launch a car in the first half of next year. The company released a new operating system called HyperOS at the end of October.
A small part of Huawei’s business
Huawei’s consumer business revenue has been cut in half since the United States blacklisted the company, restricting its purchases from American suppliers. This includes gaining access to the latest version of Google’s Android operating system.
Instead, Huawei released its own system, called Hongmeng OS.
In the first half of this year, Huawei Consumer revenue was 103.5 billion yuan ($14.27 billion), while the company’s smart car solutions (its products include new energy vehicle technology) revenue was 1 billion yuan. Other automotive-related revenue is also included in other parts of the business.
Huawei CEO Yu Chengdong said on Tuesday that the company cooperates with automakers in three ways:
- As a parts supplier.
- While the automaker designs its vehicles, it sells a set of automotive technology products called “Huawei Inside.”
- Gain greater control over the design, sales and marketing of “Huawei Inside” vehicles as automakers build them.
Huawei launched the Aito brand car model manufactured by Seres at the end of 2021. The vehicles are regularly displayed in Huawei smartphone stores across China and have soared in popularity. The company claims that it has delivered more than 120,000 M5 models alone.
Yu said on Tuesday that Aito will deliver about 16,000 to 18,000 M7 cars in November and more than 20,000 next month.
Companies ranging from BYD to startup Li Auto account for a large share of the growth of China’s new energy vehicle market, which includes hybrids and battery-powered vehicles. Traditional foreign automakers such as Volkswagen and Toyota have been slower to adapt.
According to the China Passenger Car Association, the penetration rate of new energy vehicles has climbed to more than one-third of newly sold passenger cars in China this year.
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