Huawei Technologies Co., known for its smartphones and laptops, is now venturing into the electric vehicle (EV) market. Amidst US-China trade tensions and semiconductor restrictions, Huawei is expanding its portfolio by becoming a key auto supplier. This move involves focusing on car operating systems and assisted driving technologies, rather than manufacturing cars.
In collaboration with at least five automakers, Huawei has introduced electric cars, demonstrating its technological capabilities. The Aito M7 SUV, developed with Seres Group Co., is a prime example, achieving 80,000 orders in just 50 days. Huawei’s technology is also featured in the Avatr 12 luxury coupe by Chongqing Changan Automobile Co., and the Luxeed S7 sedan by Chery Automobile Co., both equipped with advanced features like highway cruise control and voice-controlled intelligent cockpits.
The Aito brand, benefiting from its association with Huawei, has gained significant visibility through Huawei’s retail presence. Products like the Mate 60 smartphone, featuring a Chinese-made 5G chip, have bolstered national pride among Chinese consumers, contributing to Aito’s success. Daniel Kollar, head of automotive and supply chain at consultancy Intralink, attributes Aito’s popularity to a mix of nationalism and impressive technology.
However, maintaining momentum in a market with over 100 competitors and hundreds of models is a challenge. Avatr, with its dealership network, is seeking a similar boost from its Huawei partnership. Despite modest vehicle registrations in the past year, the Avatr 12, priced at 300,800 yuan, showcases Huawei’s ADS 2.0 intelligent driving system, underlining Huawei’s commitment to innovation.
Huawei’s strategy of partnering with multiple automakers is a tactical move to navigate China’s rapidly evolving EV market. As some companies face financial struggles and others merge, Huawei aims to embed its technology across various platforms, ensuring its presence among the market’s survivors. This approach, according to Kollar, could eventually lead Huawei into direct manufacturing.
Other tech giants eyeing the EV market face regulatory hurdles, but Huawei’s collaborative approach has given it a head start over competitors like Xiaomi Corp. Huawei’s success with Aito is now prompting rivals to scrutinise its reliability, with questions arising about the maturity of its automatic emergency braking system. Despite these challenges, Huawei remains committed to supporting automakers through the industry’s consolidation.
“In the age of the smart car, competition will be even more fierce,” says Richard Yu, chairman of Huawei’s car business unit. He believes that manufacturers collaborating closely with Huawei will not only survive but thrive in this competitive landscape.
As Huawei ventures into the electric vehicle (EV) market, Australians might wonder if these cars will cruise their roads. Given the competitive pricing of around AUD 64,000 for models like the Aito M7 SUV, there’s a clear market opportunity. Australia’s growing acceptance of Chinese-made EVs suggests a potential welcome for Huawei’s vehicles.
However, Huawei’s past challenges, particularly the 5G network controversy, could influence consumer perception. Will the brand’s history affect Australian buyers’ decisions, or will the appeal of innovative, reasonably priced EVs prevail? This balance between past concerns and present offerings will be key to Huawei’s success in the Australian EV market.
