Automakers have access to China sales via Huawei's smart vehicle technology

Automakers have access to China sales via Huawei's smart vehicle technology

Beijing After surviving the devastating effects of trade restrictions on its smart vehicle business, Huawei has emerged as a major player in the field in only four years.

In only four years, Huawei has emerged as a major player in the smart vehicle industry, overcoming the devastating effects of trade restrictions on its smartphone business and creating the most talked-about driver assistance system at the Beijing auto show.

This week's expo has two enormous booths from Huawei Technologies, and at least seven Chinese manufacturers are promoting its Qiankun advanced driving assistance system (ADAS) as the most advanced system available.

Upon the car's 2025 introduction, even Germany's Volkswagen will outfit its China-made, China-destined Audi Q6L e-tron with Qiankun, marking Huawei's first agreement with a foreign carmaker, two individuals with knowledge of the subject told Reuters.

Makoto Uchida, the CEO of Nissan, was also intrigued when he went to a Huawei stand and heard officials discuss the technologies designed for the Seres vehicle that was on show. According to a Nissan representative, Uchida was checking out exhibits and had no comments on any potential Huawei collaboration.

According to Audi, it doesn't discuss its suppliers. Huawei did not answer a request for comment right away.

After U.S. export limits implemented on national security grounds since 2019 severely hurt the company's operations, particularly smartphones, Huawei's quick rise to prominence as a components supplier underscores the company's search for other development opportunities.

It has said that it wants to compete with companies like Bosch, Denso, and Continental as a leading automotive supplier for the intelligent EV age.

"We have developed with Huawei over the last three years, and everyone can see our accomplishments. Chairman Zhang Xinghai of Dongfeng-backed Seres, who's Aito ranked sixth among new energy manufacturers in China in the January-March quarter, said, "We are going to keep to work side by side for the next three years and more."

IMPROVED COMPETITION

The industry's rapid expansion has made Huawei's market entrance easier. Legacy automakers are finding it difficult to keep up with EV producers like BYD, which are offering vehicles for as little as $20,000 with one-time premium amenities.

While state-owned giants have found it difficult to innovate and now rely on companies like Huawei to increase their competitiveness, private EV manufacturers like BYD have shown their capacity to build high-tech capabilities internally, according to experts.

With the help of Huawei's ADAS, state-owned companies Changan, Dongfeng, and BAIC are retaliating with new electric vehicle names like Avatr, VOYAH, and Arcfox.

Beginning in 2025, Guangzhou Automobile (GAC) will also introduce flagship cars using Huawei's smart vehicle technologies under the Trumpchi brand.

"At the moment, Huawei is leading in ADAS technologies," Feng Xingya, general manager of GAC, said to reporters on Thursday. "We chose them because we must make sure GAC products have devices with the most advanced technologies for consumers."

Despite its issues with Western governments, Huawei is seen as a possible partner in China that global companies should give serious thought to, according to three managers at multinational automakers.

Its ability to produce its own chips adds to its allure since, according to the managers, decoupling might result in further trade restrictions that would affect China strategy.

In order to provide driving automation for the cars aimed for the Chinese market, automakers "may wind up partnering with Chinese firms." Other ADAS suppliers, like Bosch, may not have the same prospects in China as they have in Europe or the United States, but Huawei can take advantage of them, according to investor and business counsel Evangelos Simoudis.

RIVAL OR SUPPLIER

Nonetheless, the three managers and one other individual said that Huawei's significant involvement in the creation and marketing of Seres Aito and other vehicles has sparked worries inside the sector that Huawei is not only a supplier but also a competitor.

Moreover, this year's shortage of computer components caused the corporation to postpone the delivery of many flagship models, such as the Chery Luxeed S7, Changan Avatr 12, and Seres Aito M9.

Outside of China, Huawei may once again be subject to trade restrictions as the United States started looking into Chinese cars this year for potential national security risks, mainly because of worries about "connected" automotive technology.

Not a single one of Huawei's partner automakers has said that they would be exporting cars featuring Huawei technology.

At the auto show, Huawei also showcased other technologies such as LIDAR, optical sensors, telematics sensors about GPS and BeiDou, vehicle control units that calibrate ride and suspension, and an audio system integrated into head rests so passengers can listen to different music without disturbing one another.