It took Huawei just four years to become a force in smart car technology, despite trade sanctions hitting its smartphone business, while developing a system to support driving that is the darling of the Beijing Motor Show.
Huawei Technologies has two huge booths at this week's show, and at least seven Chinese automakers are touting the Qiankun installed in their cars as the most sophisticated advanced driver assistance system (ADAS) to date.
Even Germany's Volkswagen will equip its China-made and China-bound Audi Q6L e-tron with Qiankun when the car launches in 2025, marking Huawei's first deal with a foreign automaker, people told Reuters two people familiar with the matter.
Nissan CEO Makoto Uchida's interest was also piqued when he visited a Huawei booth and listened to representatives explain the systems developed for the Seres car on display. A Nissan spokesman said Mr Uchida was visiting the stands and had no comment on possible considerations for a partnership with Huawei.
Audi said it does not comment on suppliers. Huawei did not immediately respond to a request for comment.
Huawei's rapid emergence as a parts supplier underscores the telecommunications equipment maker's desire to find sources of growth after export controls imposed by the United States on national security grounds since 2019 took a toll on its activities, particularly smartphones.
Huawei has said it wants to become a leading automotive supplier for the era of smart electric vehicles, competing with companies such as Bosch, Denso and Continental.
“We have grown side by side with Huawei for three years, and our achievements are obvious to everyone. We will continue to work side by side for the next three years and more,” said President Zhang Xinghai of Seres, supported by Dongfeng, whose Aito ranked sixth among new energy brands in China in the January-March quarter.
STIMULATE COMPETITIVENESS
Huawei's entry into the market has been aided by the pace of development in the industry, with traditional automakers struggling to keep up with electric vehicle makers such as BYD, which are packing great features into cars priced does not exceed $20,000.
Private EV manufacturers like BYD have proven capable of developing high-tech capabilities in-house, while state-owned big names have struggled to innovate and are therefore relying on companies like Huawei to bolster their competitiveness, according to analysts.
State-owned enterprises Changan, Dongfeng and BAIC are fighting back by launching new EV brands such as Avatr, VOYAH and Arcfox, all equipped with Huawei's ADAS.
Guangzhou Automobile (GAC) will also launch flagship models under its Trumpchi brand from 2025, featuring Huawei's intelligent vehicle technology.
“Huawei is currently at the forefront of ADAS technologies,” Feng Xingya, general manager of GAC, told reporters on Thursday. “We chose them because we need to ensure that GAC’s products are equipped with the most advanced technologies for consumers.”
Three foreign automaker officials said Huawei was seen as a potential partner worth serious consideration by foreign brands in China, despite difficulties with Western governments.
The fact that Huawei can make its own chips strengthens its appeal, as decoupling could lead to new trade restrictions that would otherwise impact China's strategies, the officials said.
Automakers “may end up partnering with Chinese companies to automate the driving of vehicles destined for Chinese markets. Huawei may benefit from such opportunities while other ADAS suppliers, for example Bosch, may not have them in China the same way they have them in Europe or the United States,” said Evangelos Simoudis, an investor and business advisor.
SUPPLIER OR RIVAL
However, Huawei has been heavily involved in the development and promotion of Seres Aito and other vehicles, which the three directors and a fourth person said has raised concerns in the industry that Huawei is not not just a supplier, but also a rival.
The company also experienced a shortage of computer components this year that delayed deliveries of flagship models such as the Seres Aito M9, Changan Avatr 12 and Chery Luxeed S7.
Beyond China, Huawei could again be hit by trade restrictions, as the United States this year began examining whether Chinese vehicles posed a national security risk, particularly due to concerns over the technology. “connected” cars.
None of Huawei's partner automakers have announced plans to export models equipped with Huawei technology.
Other technologies Huawei showcased at the auto show include vehicle control units that calibrate ride and suspension, LIDAR, telematics sensors using BeiDou and GPS navigation, optical sensors and an audio system integrated into head restraints so occupants can listen to different music without disturbing each other.
