In November 2023, Changan Automobile, a subsidiary of Changan Auto, signed a Memorandum of Understanding (MoU) with Huawei to provide intelligent systems and solutions for the automotive industry. Under the agreement, Huawei will transfer its technologies and solutions for smart vehicles to the joint venture, in which Changan will have up to a 40% stake.
Huawei’s decision to collaborate with Changan Auto, which sold 2.053 million vehicles and ranked fifth among China’s largest car manufacturers in 2022, marks a significant step in Huawei’s business strategy.
In the past, there were speculations that Huawei planned to launch its own brand of electric cars. However, over the past few years, Huawei has changed its approach to the automotive industry, facing numerous challenges along the way.
As part of its collaboration with car manufacturers, Huawei has developed three different models. The first model involves supplying standard components to car manufacturers, such as LiDAR, millimeter-wave radar, cameras, and vehicle management components like Thermal Management Systems (TMS) within the vehicle.
The second model is “Huawei Inside” (HI), which offers comprehensive solutions for car manufacturers, including intelligent cockpits, intelligent drivetrains, intelligent connectivity, cloud services for vehicles, and a set of over 30 types of intelligent parts.
The third model, “Huawei smart selection,” focuses on providing car manufacturers with comprehensive solutions for intelligent vehicles, including product definition, design, user experience, and design process. However, the car’s mechanics, chassis components, and tuning will still be controlled by the car manufacturer.
Huawei’s collaboration with car manufacturers has not been without challenges. Many car companies have been concerned about the potential threat Huawei’s position poses to their interests. As a result, some car manufacturers, such as GAC Group, have decided to suspend their cooperation with Huawei.
One clear result of Huawei’s entry into the automotive market is its collaboration with BAIC New Energy in producing the Arcfox Alpha S HI model. Despite its advanced safety capabilities and driver assistance, the sales of this model have been disappointing.
Now, Avatr, an electric car brand under Changan Auto, aims to sell 90,000 vehicles in 2024. Although official sales data for 2023 has not been announced yet, it is said that Avatr has sold approximately 25,000 vehicles, only a quarter of the target.
It is worth noting that most car manufacturers still have concerns about Huawei’s excessive influence on the automotive industry. However, the collaboration between these two powerful companies in the field of intelligent automotive promises new and innovative solutions for the future of cars.
FAQ section:
1. When did Changan Automobile’s subsidiary sign the MoU with Huawei?
In November 2023.
2. What kind of solutions will Huawei provide for the automotive industry?
Huawei will provide intelligent systems and solutions for the automotive industry.
3. What percentage of shares will Changan have in the joint venture?
Changan will have up to a 40% stake in the joint venture.
4. What development models has Huawei developed for car manufacturers?
Huawei has developed three different models: a standard component supplier, “Huawei Inside” (HI), and “Huawei smart selection.”
5. What is “Huawei Inside” (HI)?
“Huawei Inside” (HI) offers comprehensive solutions for car manufacturers, including intelligent cockpits, drivetrains, connectivity, cloud services for vehicles, and intelligent parts.
6. What is “Huawei smart selection”?
“Huawei smart selection” involves providing car manufacturers with comprehensive solutions for intelligent vehicles, including product definition, design, user experience, and design process.
7. How do car manufacturers respond to collaborating with Huawei?
Some car manufacturers are concerned that Huawei’s position may threaten their interests, leading them to suspend cooperation with Huawei.
8. What is the sales situation of the Arcfox Alpha S HI model?
The sales of the Arcfox Alpha S HI model have been disappointing despite its advanced safety capabilities and driver assistance.
9. What sales target does the Avatr brand (Changan Auto) set for 2024?
The Avatr brand (Changan Auto) aims to sell 90,000 vehicles in 2024.
10. What are the concerns of most car manufacturers regarding Huawei’s collaboration?
There is still concern about Huawei’s excessive influence on the automotive industry.
The source of the article is from the blog trebujena.net