Huawei was present at the China EV 100 Forum event held in Beijing, where Richard Yu, president of the Intelligent Automotive Solutions (IAS) Business Unit, brought promising news for the future of the tech giant's automotive business.
Huawei, after tough times with annual losses once reaching around $1,4 billion, expects to turn a profit this year thanks to collaborations with automakers to develop mid- and high-end models.
Huawei managed to reduce losses to below 1 billion dollars last year, and this indicates a significant improvement in the performance of Huawei's automotive division, which started operations in May 2019. Yu highlighted Huawei's three-pronged cooperation model with the automotive industry : the parts sourcing standard, the Huawei Inside (HI) model that provides complete solutions, and the Zhixuan model, focused on design and development support, along with retail and marketing services.
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Huawei has among its successful partnerships with Changan Automobile, which uses the HI model for its Avatr sub-brand, and plans to implement a similar one for Deepal. Other brands such as Dongfeng Motor's Voyah and M Hero could follow suit. Yu also mentioned the collaborations under the Zhixuan model with Seres Group, Chery, Beijing Automotive Group (BAIC), and Anhui Jianghuai Automobile Group (JAC), highlighting the significant impact of these partnerships on innovation in the automotive industry.
A notable achievement of Huawei was mentioned with the S9 model, developed in collaboration with BAIC, which recently received the approval of the Ministry of Industry and Information Technology of China. In addition, Huawei plans to launch new models in partnership with JAC, with prices that can reach up to 1 million yuan, showing the company's ambition to dominate the luxury car market.
Huawei, despite challenges such as delays in the production of the Luxeed S7 model caused by the shortage of chips and the relocation of the factory, through Richard Yu gave assurances that the situation will normalize from April, signaling a strong recovery in production.
Huawei's success is based on its commitment not to be directly involved in automobile production, instead focusing on the development of intelligent driving systems and component solutions through its new joint venture, Newcool.
Huawei's partnership with Changan in November 2023 underscores Huawei's commitment to becoming a world leader in this sector, opening new horizons for innovation and growth in the smart car industry. As technology and smart mobility become increasingly interconnected, Huawei is consolidating its position as a key player in the automotive revolution, promising a spectacular evolution in the coming years.
