Huawei starts new smart system company for autos as it conquers market
Huawei starts new smart system company for autos (Getty Images)
A Chinese tech giant Huawei has recently established a new company for creating intelligent car systems, Shenzhen Yinwang Intelligent Technology Co Ltd, as part of its expanding efforts to enter the automotive industry, according to CNN.
The new firm, fully owned by Huawei, will focus on making and selling smart car systems and equipment. It was incorporated in Shenzhen, where Huawei is headquartered, with an initial capital of 1 billion yuan (approximately $140.5 million).
Huawei conquers the auto market
This development is a major step for Huawei, a well-known technology and telecom giant facing challenges due to US export restrictions. In the past three years, Huawei has been actively pursuing its automotive ambitions. In 2021, the company entered the electric vehicle (EV) market, unveiling its first battery-powered vehicle. Following that, it introduced two new vehicles, including an electric sedan called Luxeed S7 and the Aito M9 electric SUV, aimed at high-end buyers.
The competition in the Chinese auto market, the world's largest, has intensified, with Huawei's new smart car unit gaining support from Changan, a Chinese state-owned automaker. In November, a Changan subsidiary revealed a partnership with Huawei to establish a company focused on smart car systems. Changan plans to acquire up to a 40% stake in the venture, aligning with its goals of becoming a low-carbon, technology-driven transportation company.
Huawei's involvement in the automotive sector extends beyond manufacturing vehicles. The company provides a software system for vehicles called HarmonyOS for Automotive, aiming to create a seamless experience across devices. This move reflects the growing trend of tech companies collaborating with automakers to develop smart cars, which integrate advanced software and electronics.
Сar market in China
China's market, especially the electric vehicle (EV) share, has been actively developing recently. Xiaomi, a Chinese smartphone manufacturer known for its low-budget devices, presented its first electric car in December 2023. A model named Xiaomi SU7 was developed for $1.4 billion (10 billion yuan), aiming to compete with the largest electrical vehicles producers like Tesla and Porsche.
Besides, Tesla has lost its position as the world's leading electric vehicle manufacturer for the first time, with China's BYD, Build Your Dreams, surpassing Tesla in sales. Elon Musk's Tesla delivered 484,000 cars in the fourth quarter of 2023, falling short of Warren Buffett-backed BYD's record sales of 526,000 battery-only vehicles for the same period.
