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Tech firms eye big footprint in vrooming NEV sector

Efficient supply chain, talent and rising demand attracting more players

By MA SI | China Daily | Updated: 2024-05-03 08:24
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Luxeed S7, an electric sedan developed by Huawei, is on display at the company's flagship store in Hangzhou, Zhejiang province, in December. LONG WEI/FOR CHINA DAILY

Yu Chengdong, head of Huawei's smart vehicle business unit, said: "We are expanding collaboration with partners in the Chinese automotive industry to usher in a new era of smart EVs, leading the comprehensive transformation of intelligent automobiles."

Huawei has highlighted that it will not make the car itself.

It has so far adopted two strategies to be a part of the auto supply chain. One is to supply components and technologies to automakers, like its cooperation with Changan Auto, said Zhong Shi, an independent auto analyst.

"The other is the intelligent car selection mode. Huawei not only participates in product modeling, interior design and intelligent solutions, but is also responsible for the marketing and sale of cars. A typical example is its cooperation with traditional car brands which has proved to be highly successful," Zhong said.

A recent case in point is how Huawei unveiled in April upgraded versions of its Luxeed S7 electric sedan in partnership with Chery Auto, as the tech company aims to expand its presence in the burgeoning but increasingly crowded NEV market.

The move came after Huawei's SUV Aito series, developed in collaboration with Chinese carmaker Seres, was widely accepted by consumers. Aito M7, which has been on the market for seven months, has accumulated over 174,000 orders, and Aito M9, launched three months ago, has accumulated over 70,000 preorders, with a monthly delivery capacity reaching 25,000 units.

Available at a starting price of about 250,000 yuan ($35,000) in China, the latest S7 has received a major upgrade in intelligent safety with the inclusion of Huawei's vision intelligent driving solution, which enhances the driving experience on highways and in urban areas, and simplifies intelligent parking, Yu said.

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