Huawei, the technology giant, has entered into a strategic partnership with Dongfeng Motor, a key player in the automotive industry, particularly as a Chinese manufacturing partner of Stellantis. The collaboration focuses on the development of smart electric vehicles, marking another significant step for Huawei into the ever-expanding electric vehicle (EV) market.
The Significance of the Partnership: This collaboration holds substantial importance, especially for Voyah, a subsidiary of Dongfeng and a state-owned automaker. The partnership is anticipated to enhance Voyah’s sales and extend its reach within the dynamic and competitive EV market. According to David Zhang, a visiting professor at Huanghe Science and Technology University, this strategic move aligns with the ongoing industry consolidation and reshuffling.
Huawei’s EV Initiatives: Huawei’s commitment to the EV sector is evident through two distinct initiatives – “Huawei Inside (HI)” and “Smart Selection.” Under the “HI” model, Huawei provides full-stack technologies, including automated driving software and infotainment systems, to partner automakers. Notable partners in this initiative include Changan Automobile and BAIC, Mercedes’ Chinese partner. The “Smart Selection” approach involves Huawei offering both technologies and sales channels, a successful example being the collaboration with Aito and the recent Luxeed launch with Chery.
Details of the Partnership: In collaboration with Dongfeng, Huawei is set to adopt the “HI” approach, focusing on selling components and software to the automaker. This strategic decision allows Dongfeng to retain control of its premium EV brand while benefiting from Huawei’s cutting-edge technologies. The alliance aims to capitalize on the growing demand for advanced technologies in EVs, particularly emphasizing Huawei’s automated driving system as a key selling point for Voyah.
Future Plans and Developments: Huawei and Dongfeng have outlined plans for the large-scale adoption of intelligent technologies through the joint development of new cars. Although specific details are yet to be disclosed, the collaboration signifies a forward-thinking approach towards the integration of innovative solutions in the automotive industry.
Context and Industry Dynamics: Huawei’s involvement in the automotive sector has been ongoing, with the recent establishment of a joint venture with Changan. The spin-off of its automotive business unit and the invitation for existing partners, such as Seres, to invest in the new entity, highlight Huawei’s strategic focus on the EV market. Voyah, in particular, has experienced significant growth in sales, with a notable increase from 20,000 to 50,552 units sold last year. The automaker’s revamped Free luxury crossover, featuring Baidu’s automated driving assistance system, contributed to this remarkable success.
