Analysis of Huawei’s Electrification, Connectivity, Intelligence and Sharing, 2023-2024 – Huawei Accelerates Smart Vehicle Revolution with Major Upgrades and Nationwide Expansion – ResearchAndMarkets.com

DUBLIN–(BUSINESS WIRE)–The “Analysis on Huawei’s Electrification, Connectivity, Intelligence and Sharing, 2023-2024” report has been added to ResearchAndMarkets.com’s offering.

In the realms of automotive electrification, connectivity, intelligence, and sharing, Huawei has set a benchmark for both domestic and international automotive enterprises and Tier 1 suppliers.

Comprehensive Layout in Eight Major Fields and Upgrade of Huawei Smart Selection

The “Huawei Intelligent Driving Business Report 2023,” released in June 2023, highlights Huawei’s rapid growth in the intelligent vehicle market. The report states that Huawei sold 10,000 intelligent vehicles in May 2023 and 40,032 in January 2024.

By the end of 2023, Huawei’s City NCA became available in 45 cities. By February 2024, Huawei City NCA had expanded to cover most cities in China, utilizing intelligent driving technology independent of HD maps.

In the field of smart cars, Huawei has made significant deployments in several areas:

• CCA (Connected Car Architecture)
• Intelligent driving
• Intelligent car control
• Intelligent cockpits
• Intelligent electric
• Intelligent automotive lighting
• Intelligent connectivity
• Intelligent car cloud

Huawei collaborates with car companies through three models:

1. Parts Supply Model
2. Solution Model (Huawei Inside)
3. Huawei Smart Selection (upgraded to Harmony Intelligent Mobility Alliance (HIMA))

Progress in Parts Supply Model

By the end of 2022, Huawei had launched over 30 smart auto parts and shipped nearly 2 million sets. These include smart cockpits, smart driving systems, smart electric components, smart car cloud, radar, cameras, gateways, lidar, computing platforms, AR HUD, and T-Box products.

On February 24, 2024, Huawei and GAC Trumpchi announced the debut of the Master Pioneer Version of Trumpchi M8, equipped with Huawei HarmonyOS.

Traditional car companies lag behind Huawei and other IT companies in IT ecological layout, resulting in inferior IVI (In-Vehicle Infotainment) and cockpit experiences. Therefore, Huawei’s HarmonyOS cockpits are widely adopted in new models from Changan, GAC, and Dongfeng.

Despite substantial shipments of smart auto parts, the fierce competition among parts manufacturers has kept the output value low. Huawei’s Intelligent Automotive Solution Business Unit earned about RMB 2 billion in 2022 and about RMB 1 billion in the first half of 2023, insufficient to cover its annual costs of over RMB 10 billion. As a result, Huawei has shifted focus from parts supply to Huawei Inside and Huawei Smart Selection, aiming to turn losses around.

Upgrade of Huawei Inside

Huawei Inside involves a cooperative model where Huawei and car companies jointly define and develop smart cars. Huawei integrates its intelligent driving systems, cockpit systems, domain controllers, chips, motors, and sensors into the smart cars, maintaining deep cooperation with car companies.

Notable collaborations under Huawei Inside include:

• BAIC ARCFOX
• Changan Avatr

Although GAC initially participated in Huawei Inside, it later withdrew. Due to significant investment and the package solution’s limited acceptance among OEMs, Huawei shifted strategy to establish joint ventures with car companies.

On November 26, 2023, Changan Automobile announced an Investment Cooperation Memorandum with Huawei to form a new company focused on automotive intelligent systems and parts solutions. Huawei plans to integrate its core smart car solutions into this new entity, with Changan investing up to 40%.

On January 16, 2024, Shenzhen Yinwang Intelligent Technology Co., Ltd. was established as a wholly-owned Huawei subsidiary, aiming to welcome more partners. This new joint venture between Changan and Huawei, tentatively named ‘Newcool,’ focuses on seven fields, including intelligent driving, cockpits, digital platforms, vehicle cloud, AR-HUD, and intelligent headlights. Huawei’s goal is to reduce its shareholding to less than 30%.

After upgrading Huawei Inside, Huawei secured cooperation with Dongfeng Voyah and Dongfeng Warrior in early 2024.

Upgrade of Huawei Smart Selection

Huawei Smart Selection builds on Huawei Inside, involving deep participation in product definition, R&D, manufacturing, and marketing, with Huawei retaining dominance. Brands like Seres AITO and Chery LUXEED have chosen Huawei Smart Selection, with STELATO and Aojie expected to follow.

Under the leadership of Yu Chengdong, Huawei Smart Selection has seen initial success, with AITO ranking first among emerging brands by sales volume. Huawei Smart Selection operates on a ToC (To Consumer) model, leveraging Yu Chengdong’s expertise in marketing and brand building.

By the end of 2023, Huawei Smart Selection was upgraded to the Harmony Intelligent Mobility Alliance (HIMA), empowering partners across products, quality, sales, services, and marketing.

To unify the car purchase process among HIMA partners and mitigate competition between OEM brands, Huawei began building independent HIMA stores. On January 10, 2024, HIMA’s official Weibo account announced the construction of a new HIMA user center by China National Postal & Telecommunications Appliances Co., Ltd. (PTAC). Approximately 800 HIMA stores are expected by 2024, increasing to 1,000 by 2025.

With rising sales of Huawei Smart Selection, the construction of charging infrastructure has become critical. In 2023, Huawei and partners deployed over 10,000 charging piles nationwide, covering 31 provinces. By the end of 2024, Huawei plans to deploy more than 100,000 fully liquid-cooled ultra-fast/fast charging piles in over 340 cities and major highways. These supercharging terminals have a maximum output power of 600kW, nearing “one kilometer per second” charging speed.

Hou Jinlong, president of Huawei Digital Energy Technologies, predicts a surge in electric vehicle ownership from 20 million to 200 million in the next decade, with charging capacity increasing from 100 billion kWh to 1 trillion kWh. The number of charging piles is expected to increase fivefold.

Key Topics Covered

1 Overview

2 MDC Intelligent Driving Computing Platform

3 Operating System and Middleware

4 ADS Business

5 Intelligent Driving Sensor Business

6 Huawei Cloud and AI Foundation Model

7 Intelligent Cockpit Business

8 Lighting and Display Services

9 Electrification and Chassis Layout

10 Automotive Communication Products

11 CVIS Solutions

12 Models of AITO

For more information about this report visit https://www.researchandmarkets.com/r/o5rk16

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