China's automotive industry is steering into an era of intelligent vehicles in 2024, propelled by advances in new energy technology. After years of hesitation, automakers are now forging partnerships with Huawei, encouraged by the tech giant's commitment to avoid manufacturing vehicles and its recent brand trademark sales. Major players like SAIC Audi, BYD, Changan, Dongfeng, and GAC have all aligned with Huawei.
The collaboration between Huawei and BYD stands out among these partnerships, with both companies headquartered in Shenzhen, China's premier tech hub. GAC's General Manager Xingya Feng recently suggested that autonomous driving technology once considered the industry's cornerstone, may transition into a support role as capabilities mature. Nevertheless, some automakers continue to view Huawei as both partner and competitor, maintaining strict control over their R&D while navigating pressures to support China's self-sufficiency goals.
Industry analysts note that partnerships with Huawei carry strategic implications beyond mere technological integration. While Huawei's advanced tech ecosystem makes it an attractive partner, automakers now have alternative smart-driving solutions, enabling them to select options that best suit their needs and maintain their independence.
Yet concerns about over-reliance on Huawei remain. Though Huawei commands significant influence, China's vast and diverse market has created space for other leaders. Companies like Horizon Robotics, Pony.ai, and DJI Automotive continue to advance, while electric vehicle startups NIO, XPeng, and Li Auto have accelerated their smart-driving development, challenging Huawei's position in the sector.
Despite its stance against manufacturing vehicles, Huawei has established itself as a key Tier 1 supplier, contributing to models like the Audi A5L and BYD Leopard 8, while expanding relationships with foreign carmakers as global giants like Volkswagen and Stellantis strengthen their Chinese partnerships. This sets the stage for intensified competition as the Chinese automotive sector navigates this transformative period.
