Chinese smartphone maker, Huawei is also making cars now
When I first heard that Chinese smartphone manufacturer, Xiaomi, was throwing its hat into the electric vehicle (EV) sphere, I was sceptical, but after seeing the final product, I was a bit less reserved. Now, another Chinese smartphone maker, Huawei, is following in Xiaomi’s footsteps. What is happening as a result?
Well for starters, some Chinese automakers have had to delay deliveries of flagship models due to production issues with a computing unit made by Huawei, five people with knowledge of the matter said.
Moreover, Changan Auto and Chery Auto, both of which have partnered with Huawei in developing their premium EV brands, have lodged complaints and are in talks to resolve the issue, two of the people said. Seres, a smaller carmaker, has also been affected, one person said.
The computing unit, called the MDC 810, powers advanced driver assistance systems and is central to Huawei’s ambitions to become the dominant supplier of software and components for smart EVs.
These problems also come at a time when Huawei is seeking to secure more investors for its four-year-old Intelligent Automotive Solution (IAS) business unit that it plans to spin off. Changan Auto has said it plans to own up to 40 percent of the new company. Changan referred the request to its Avatr division, which did not respond.
Changan’s Avatr 12 sedan had received more than 20,000 orders as of 1 December 2023, according to the company, while Chery’s Luxeed S7 sedan, the first model for its Luxeed brand, had raked up 20,000 orders as of 28 November 2023. Luxeed said this month that buyers could be reimbursed by up to 10,000 yuan if they were unable to pick up the S7 as promised.
On top of that, the MDC 810 allows the automakers to offer so-called intelligent driving features that include autonomous driving on highways and helping drivers navigate traffic jams, similar to what Tesla’s Autopilot feature provides in North America. Well with the price wars already raging on in China, can it afford an internal feud causing delays?
China is the world’s biggest auto market and here, hundreds of EV and petrol powered hybrid vehicles are competing for sales. As such, features have become a major selling point and are a key reason why automakers have sought to partner with Huawei, analysts have said. However, this may have evidently backfired on them. What do you think?
We got all this from Reuters and their full article is linked here. Thank you Reuters for the information and images.
