The automobile industry is flourishing day by day, setting new milestones, increasing its level, and describing new opportunities. As technology is expanding in the present day, the smart car industry is also touching the boom.
Seeing these opportunities growing in the automotive business, many other technology makers are also attracted to this industry and want to make their own fortune. Till now, Chinese Smartphone companies like Xiaomi, and OPPO have come into the limelight regarding the smart car market and following Huawei’s way.
Now, the question that came to our mind is whether smartphone manufacturing easier or making cars. It’s worth looking that what is attracting the smartphone manufacturers in the automotive field that they are getting involved more and more.
Recent Status of Mainland Car Market:
On 28 April, it was reported that OPPO has begun to make its preparation and soon announce official news regard to car manufacturing. A related person has disclosed that founder Chen Mingyong had a conversation of hours with Zhu Wei, president of China’s passenger car division of Ningde Times.
To be mentioned, this tech firm already owns the Oppo Cars Dagenham, which offers the refurbished car services and stocks a range of used cars to suit all budgets and lifestyles.
It was also reported that the Chinese Smartphone firm- Meizu will also work in the automotive industry to established its brand as once Meizu Technology shared a post on official Weibo saying, “The first cooperation, chat tomorrow”.
Later, the company officially informed that they are joining hands with MINI JCW Racing and will compete in the 2021 Masters Challenge. Also, the Flyme OS is starting to modify for the smart car cockpit to provide a smart ecosystem for car manufacturers as well as smartphone users.
Xiaomi is known for its vast smartphone market presence and its cooperation version already owns an SUV model under the Redmi Brand and reportedly working on an electric smart car model. A few days ago, a report reveals, this company will invest an estimated 10 billion US Dollars in its smart electric vehicle business.
Huawei’s astonishing performance in the automotive industry hasn’t been hidden from anyone. This company is emerged as a new rising star and can be a threat to the other OEMs with its powerful smart car technologies as well as research and development capabilities.
Until now, Huawei has fed its technologies into smart car models Smart Selection SF5 and ArcFox Alpha S, and GAC Trumpchi with Cyrus, BAIC, and GAC Group respectively. These smart car technologies are powered by Huawei and the manufacturing is done by fellow companies.
Making Car is Easier or Making Phones?
Talking about the era of smartphones, it was started about 10 years ago, when big names such as Apple and Nokia were dominating the mobile phone market. And now we have many leaders including Samsung, OPPO, Vivo, Lenovo, Xiaomi, and Huawei.
Now the era which belongs to the smart car industry has finally arrived. Here we are seeing the technologies beyond the imaginations in the automotive vehicle, which only exists in the fantasy, not a long ago. However, it’s just the beginning of this revolution and we still have a long way to go.
Talking about the current situation, Lei Jun, CEO of Xiaomi corporation believes in the theory of outreach, and clearly stated that he wants to build a complete car, which will be launched under the mid-to-high-end segment. The estimated price will cost from 100,000 Yuan (about 15,400 USD) to 300,000 Yuan (about 46,300 USD).
In this, we have another competitor OPPO, which owns about 3,000 registered patents for supporting the smart car technology and is suitable to create a smart vehicle. But, not giving any expectation to its consumers, it already made it clear that OPPO does not make complete vehicles, at least for now and in the foreseeable mid-term in the future, it will not make complete vehicles.
Following this trend, Vivo is working to launch the Jovi InCar Internet of Vehicles service platform, which will promote the collaboration of mobile phones and in-vehicle OS. Furthermore, the Vivo smartphones will be used as the car key to unlocking the vehicles through NFC (Near Field Communication).
Staring with the spare part supply, Huawei has been reached to selling the smart cars. But the company is still standing on its no manufacturing car position as there is no current news about establishing its brand. (Read More)
Not a long ago, Huawei has stated on this matter and commented, making the car is not the only way to entered the smart car industry. Still, the company is willing to expand its business in more fields but there is no plan of establishing its own automotive brand.
Making it clear they further commented, we believe that our smart car technology is good enough to help the car manufacturers to built good cars but still, we are lacking in many aspects and far away to build a complete car on our own.
We can see that all these smartphone makers are adopting different paths in the automotive industry. However, there is one thing for sure, all these smartphone manufacturers are seeking ways to explore the car market and get benefited from it.
Car making is certainly difficult than smartphone making in many aspects such as it needs huge investments, powerful technologies, a good R&D system, a big supply chain, as well as it needs a lot of effort.
However, the process of car making is much easier with modernized and fast technology in comparison to old times. It also has a great future scope and bounded to deliver maximum benefits. Still, Huawei likely to reign supreme in this field as well.
After collaborating with Huawei, BAIC New Energy shares exceeded 20%
A few days ago, Huawei and BAIC’s subsidiary- BAIC New Energy has signed a deepening collaboration agreement. Both firms jointly working to develop a new brand in the ArcFox series that integrates with Huawei’s exclusive HiLink technology.
As cited in the document, the agreement contains a cooperation management mechanism, strengthen product research and development, and joint brand marketing. With this new agreement, the two parties increasing their business.
Notably, this contact has yet to come into practice and BAIC already seems to get the most benefits. The car OEM has recorded a shocking increase in its market value just after signed this framework agreement with Huawei.
According to the reports from the China Stock market, BAIC Technology’s shares have exceeded by 20% in just three days. To be more precise, Huawei and BAIC New Energy announced their further collaboration on 26th September 2021. Just after it, the company’s market value springs on 27th, 28th, and 29th September.
Besides, the market analyzer is regarding this situation as abnormal stock trading fluctuation. In addition, investors are requested to pay attention as it’s just the beginning of the agreement.
Coming back to the collaboration contact, this contract has a 96 months validity. However, both firms can extend the duration as well as terminate it before the timeline with mutual concerns. Moreover, we are waiting for the next astonishing product with the capability of both firms, but we have high expectations after their last ArcFox series.
Huawei and BAIC deepening collaboration to launch new HI smart car brand
On September 26th, a Chinese carmaker, BAIC officially announced the collaboration between Huawei and the BAIC New Energy brand. Both parties signed the strategic agreement to deepening their corporation and jointly built a co-brand with ArcFox and Huawei HI.
According to the reports, these two firms have signed a strategic agreement on January 28th in 2019. Now, the two parties have deepened their partnership and will work together in the future.
In this line, the Comprehensive Business Deepening Cooperation Agreement has been marked by Beijing New Energy and Huawei Technology on the 26th of September 2021. This agreement will cover all co-branded products from both companies.
Huawei and BAIC New Energy Collaboration Agreement:
As written in the document, this contract includes the following points mentioned below-
- Cooperation Management Mechanism: This contact includes the operational mechanism optimization of the 1873 Davidson Innovation Laboratory. It’ll cover the organizational structure, functional authority, and other aspects for carried out operations such as management, planning, and more.
- Strengthen Product Research and Development: Under this agreement, both companies further strengthened the product development of the whole series coved under it. The product development, project management systems, methods, development, testing, verification, etc will also come under this contract.
- Implement Joint Brand Marketing: At last, both parties carried out the marketing and deployment of the models that’ll be manufactured under this agreement.
Prior to this, Huawei and BAIC jointly released the ArcFox Alpha S series. Furthermore, this series contains mainly two models with basic capability and Huawei HI-equipped capability. As of now, this series has gained more than 1,000 orders and completes the verification stage. Now, it’ll soon enter the public test. Its main highlights include
- Fast charging technology
- Hongmeng OS (HarmonyOS) based smart cockpit
- Huawei Kirin 990A Chipset
- Huawei ADS
- Powerful Lidar system
Pricing and Availability:
- Starting price of the regular model is 251,900 Yuan.
- The highest price of the regular model is 344,900 Yuan.
- The Basic HI autonomous model pre-sale price is 388,900 Yuan.
- The high-endHI autonomous model pre-sale price is 429,900 Yuan.
Some Huawei smart car chips has been licensed by U.S.
During the Question and Answer session at Huawei Connect 2021 conference, Eric Xu, Huawei’s Rotating Chairman informed that Huawei is facing tough challenges from the sanctions imposed by the U.S. government.
However, Huawei will not give up on hope and continue to invest and make new products including the continued development of smartphones and consumer business, which has been hit so hard by the entire U.S. actions.
However, there’s one interesting thing that the chairman said regarding the ongoing development in the smart car solution that the company has achieved so far. Xu mentioned that some low-end Huawei smart car chips have been licensed in the United States, which mainly serves the purpose of the automotive business.
This is a piece of exciting news from a business perspective of Huawei smart car chips and further support Huawei’s initiative to move forward in the field of smart car solutions as well as the smart car industry.
Meanwhile, Huawei has continued to deny that it won’t make new cars or planning to invest in any car manufacturer’s domain.
Back in 2019, Huawei has been blocked under the U.S. Entity List, which prohibits the company from purchasing new components made with U.S. technology from inside or outside of the U.S.
(Via – Tech Sina)