Without directly producing a car, Huawei is now omnipresent in the automobile sector in China. But it is now making its automotive division an independent entity. Manufacturers can take part in it. What Changan has already done.
Alongside battery manufacturers or producers, another Chinese champion of the automobile industry has emerged in recent years. It’s called Huawei. While confirming on multiple occasions that he does not wish to become a builder, he has become omnipresent. Starting with its partnerships with various colleagues to produce vehicles under new brands: Aito (with Seres), Avatr (with Changan), Luxeed (with Chery)… At the Guangzhou show, Huawei also had a stand called HIMA ( Harmony Intelligent Mobility Alliance) bringing together Aito and Luxeed vehicles which are sold in its stores.
But Huawei has also (and above all) become a major supplier of components: from a complete platform offering to screens, including electric motors, sensors or the various elements of autonomous driving, its Harmony OS system… That is to say all the elements that make up a good part of the “car of tomorrow”, which must be connected, autonomous, shared, electric… Some models also proudly display the red HI logo signaling Huawei Inside, and reserved for those who call to the equipment manufacturer in all these areas simultaneously.
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Openness… and standardization
Just after the grouping of some of its brands within the HIMA family, Huawei announces a major development. Its component supply activities will be transferred from the current Business Unit to a new legal entity. This concerns activities related to the cockpit, electrical platform, electronic architecture, head-up display with augmented reality, lighting, connectivity and Cloud services… Both in terms of design and production.
The most notable movement is the opening of capital to other partners. Thus, the manufacturer Changan will now take up to 40% of the new company. As soon as this operation was announced, Changan’s share price soared.
But Huawei’s other partners expressed surprise, fearing that their partnership would be monitored by a competitor. Which was quickly clarified. The activity linked to different brands such as Aito or Luxeed will not be transferred to the new company.
Other manufacturers are, however, cordially invited to join its capital, with the stated ambition of standardizing certain components as much as possible between several manufacturers, and giving birth to a true Chinese champion of components, able to compete with references such as Bosch, Valeo, Continental, Denso, Hyundai Mobis, etc…
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