BEIJING (Reuters) – In just four years, Huawei has become a powerhouse in smart car technology, overcoming the devastation of trade sanctions on its smartphone business and developing driver-assistance systems that are the centerpiece of the Beijing auto show.
Huawei has two huge booths at this week's event, and at least seven Chinese automakers are installing its Qiankun in their cars as the most sophisticated advanced driver assistance system (ADAS) ever. It's advertised.
Even Germany's Volkswagen plans to install Qiankun on its Chinese-made Audi Q6L e-tron when it goes on sale in 2025, in Huawei's first deal with a foreign automaker, a person familiar with the matter said. two people told Reuters.
Nissan CEO Makoto Uchida also visited the Huawei booth and was intrigued to hear a representative explain the system developed for the Ceres car on display. A Nissan spokeswoman said Uchida was touring the booth but would not comment on the company's potential partnership with Huawei.
Audi says it does not comment on suppliers. Huawei did not respond to requests for comment.
Huawei's rapid rise as a parts supplier comes after U.S. export restrictions imposed on national security grounds since 2019 hit the company's business, particularly smartphones, as the telecom equipment maker looks to find sources of growth. It highlights what you are looking for.
The company aims to become a top-class automotive supplier in the era of intelligent EVs, competing with companies such as Bosch, Denso, and Continental.
“We have grown together with Huawei for three years, and the results are clear for everyone to see. We will continue to cooperate for more than three years,” said Zhang Xinghai, chairman of Dongfeng-backed Ceres. Stated. The company's Aito was ranked 6th among China's new energy brands in the January-March period.
Improving competitiveness
Huawei's entry into the market has been smoothed by the speed of industry development, with legacy automakers catching up with EV makers such as BYD, which are packing one-off premium features into cars as cheap as $20,000. I'm having a hard time.
Private EV makers like BYD are good at developing high-tech capabilities in-house, but leading state-owned companies are struggling to innovate and are looking to companies like Huawei to boost their competitiveness, analysts say. said.
State-owned Changan, Dongfeng and BAIC are fighting back with new EV brands such as Avatr, VOYAH and Arcfox powered by Huawei's ADAS.
Guangzhou Automobile Co., Ltd. (GAC) also plans to launch a flagship model under the Trumpchi brand equipped with Huawei's smart vehicle technology from 2025.
“Huawei is currently leading in ADAS technology,” GAC general manager Feng Xingya told reporters on Thursday. “We chose these because we want to ensure that GAC products have cutting-edge technology for consumers.”
Three executives at foreign automakers said that despite difficulties with Western governments, Huawei is seen as a potential partner worth seriously considering for foreign brands in China.
Executives said being able to manufacture chips in-house would increase their appeal as decoupling could lead to even tighter trade restrictions and impact China strategy.
Automakers “may end up partnering with Chinese companies to provide driving automation in vehicles targeted to the Chinese market. Huawei could benefit from such an opportunity,” he said. “Other ADAS providers such as Bosch may not be deploying self-driving in China the same way they do in Europe or the United States,” said Evangelos Simoudis, an investor and corporate advisor.
supplier or rival
However, Huawei is deeply involved in the development and promotion of Ceres Aito and other vehicles, raising concerns in the industry that Huawei is not only a supplier but also a rival. three executives and a fourth official said.
The company has also been hit by a shortage of computing components this year, delaying deliveries of flagship models such as the Seres Aito M9, Changan Avatr 12 and Chery Luxeed S7.
Outside of China, Huawei could again be hit by trade restrictions this year as the US began investigating whether Chinese cars posed a national security risk, particularly over concerns about “connected” car technology. .
None of Huawei's partner automakers have announced plans to export models equipped with Huawei technology.
Other technologies Huawei showed off at the auto show include a vehicle control unit that adjusts ride comfort and suspension, LIDAR, telematics sensors using BeiDou and GPS navigation, optical sensors, and a system that allows occupants to hear different music without disturbing each other. This includes an audio system built into the headrests that allows you to enjoy your ride.
(Reporting by Zhang Yan, Kevin Krolick and Brenda Goh; Additional reporting by Sophie Yu and Daniel Leussink; Editing by Christopher Cushing)
