The Chinese telecoms giant will initially partner with three automakers to build autonomous vehicles bearing the Huawei name as a sub-brand.
Huawei will invest $1 billion in research into technologies for cars and electric cars, accelerating plans to compete with Tesla and Xiaomi on the world’s largest automotive stage.
Huawei’s autonomous driving technology has already surpassed Tesla’s in some areas, allowing, for example, cars to travel more than 1,000 kilometers without human intervention, Eric Xu, rotating chairman, told analysts in Shenzhen.
The Chinese telecoms giant will initially partner with three automakers to build autonomous vehicles bearing the Huawei name as a sub-brand, said Xu, one of three executives taking turns in the role. It will keep a small membership circle and put its logo on cars that adopt its autonomous driving technology, he added. The mobile giant has so far agreed to partner with BAIC, Chongqing Changan Automobile, and Guangzhou Automobile Group.
“The smart car business unit receives one of Huawei’s largest investments. We will invest more than the US $1 billion in the development of automotive components this year, ”said Xu. “China adds 30 million cars every year and the number is growing. Even if we don’t take advantage of the market outside of China, if we can earn an average of 10,000 yuan for every car sold in China, that in itself is already a great deal for Huawei.”
Huawei is emerging from its most difficult year, following sanctions by the Trump Administration that impeded progress in the manufacture of fifth-generation chips and networks. The Biden government has not shown that it will budge, prompting founder Ren Zhengfei to steer Huawei into new growth areas such as smart farming, healthcare, and electric cars.
Huawei aims to join tech giants from Apple to Xiaomi by targeting the auto industry, betting that future cars will become increasingly eco-friendly, autonomous, and connected. Electric vehicle sales in China may rise more than 50% this year alone as consumers switch to cleaner cars and costs drop, estimates research firm Canalys. Huawei’s infotainment features can already be found in Mercedes-Benz sedans and the firm has partnered with national players like BAIC BluePark New Energy Technology Co. to develop smart car systems.
“I don’t know if it was bragging, but my team says that cars can travel up to 1,000 kilometers without human intervention. That’s way better than Tesla,” Xu said.
But Huawei comes to a stage that’s already packed, where a wide variety of automakers, from Tesla to local companies like Nio and Xpeng, are battling for a slice of the world’s largest EV market. Xiaomi, best known for its affordable gadgets and home appliances, from rice cookers to automatic vacuum cleaners, last month unveiled plans to invest nearly $ 10 billion over the next decade in making electric cars. Baidu – the search giant – and Geely Automobile Holdings would also seek to build vehicles as a team.
