Huawei's Strategic Move to Attract Investors for Smart-Car Supply Chain

Huawei's Vision for the EV Landscape

Huawei Technologies is making waves in the automotive industry by inviting more carmakers to invest in its smart-car unit, Shenzhen Yinwang Intelligent Technology. As the US-sanctioned group pivots to diversify in China's rapidly evolving electric vehicle (EV) sector, exhilarating prospects are on the horizon. Chairman Eric Xu Zhijun emphasized that the initiative aims to turn Yinwang into an open-source platform for developing innovative EV technologies.

Building Collaborative Efforts in EV Innovation

Xu stated, “We will continue to bring in strategic investors and welcome EV industry players to buy into Yinwang.” The strategy marks a departure from traditional competition, focusing on collaboration to foster technological advancements and driving experiences. Huawei aims to position itself as a crucial supplier in the context of electrification and digitalization.

Yinwang’s Rising Status in China’s Smart Car Supply Chain

Established early this year, Yinwang concentrates on autonomous driving, digital cockpit solutions, and automotive lighting. In a significant move, Huawei sold a 10% stake in Yinwang to Avatr Technology for 11.5 billion yuan ($1.63 billion). Analysts at Pingan Securities suggest that Yinwang is poised to become China’s leading smart car supply-chain vendor, leveraging Huawei’s proven capability in innovation and technology.

Conclusion of the Shift

Huawei's journey into the automotive domain, initiated through the Aito EV venture with Seres, highlights its transition from smartphone manufacturer to a critical player in the EV market. With Aito becoming one of the fastest-growing EV brands, delivering an impressive 253,648 units in the first eight months of the year, Huawei is solidifying its presence in the sector.