After Huawei cars are stripping off the car BU by leaps and bounds, FAW SAIC may follow up
Huawei's automotive business is separated and a new journey begins.
Huawei's automotive business has recently made significant progress – Huawei Automotive BU is about to be spun off and a new company will be formed. The divestiture is the result of a partnership with Changan Automobile, which will acquire up to 40% of the new company's shares through investment. At the same time, the new company will gradually open up its capital to other partner automobile companies to diversify its capital. Huawei emphasized that this cooperation is an evolution of Huawei's platform-based strategy in the field of smart vehicles, and the company will continue to work with more automotive companies to jointly build an open platform for electrified intelligence. What does this divestment mean for Huawei's automotive business?Let's work together.
Huawei's Vice President Yu Chengdong plays an important role in this process. Like Huawei's mobile phones, Yu Chengdong also has an extraordinary passion and dream for Huawei automobiles, hoping to achieve the goal of rebuilding another Huawei through Huawei's automotive business. However, in November 2020, Ren Zhengfei personally issued a statement saying that Huawei does not make cars, which dealt a heavy blow to Yu Chengdong. Huawei's decision-making document states that Huawei's automotive business cannot use the Huawei logo when designing cooperative models, and emphasizes its use in the market"Huawei Automotive"The name misuses the Huawei brand is incorrect. Faced with such a dilemma, how was Yu Chengdong convinced?Perhaps it was Ren Zhengfei who painted a more exciting project that inspired Yu Chengdong to continue to work hard and realize his dream of Huawei cars.
Huawei's new dream: building an open platform.
Yu Chengdong's new dream for Huawei Motors is not just to sell a few cars, his goal is to make all cars in China use Huawei's systems and components, creating an open platform for electrification and intelligence. In order to achieve this goal, Huawei's automotive business has worked hard in the past six months to launch technology concepts such as the Inquisitive M7 and Intelligent S7, which have been well received by the market. This made Huawei Auto believe that the time was ripe both internally and externally, and Yu Chengdong finally embarked on a new journey.
However, BYD has long been considered the leader in China's new energy vehicle market. If Huawei cars want to reach the top, surpassing BYD is undoubtedly an important task. As a result, we can't help but wonder if Shenzhen-based BYD will join Huawei's automotive ecosystem
BYD's entry into the future of Huawei's automotive field.
As a new energy vehicle manufacturer in China, BYD has strong technical strength and brand influence. If BYD can join Huawei's automotive ecosystem, it will undoubtedly bring a huge boost to Huawei's automobiles. For example, BYD can use Huawei's systems and components to further improve the performance and intelligence level of the car, which will also bring Huawei a larger market share. The cooperation between the two parties will accelerate the electrification and intelligence of China's automotive industry, and promote innovation and progress across the industry.
However, it will take time whether BYD will join Huawei Auto. At present, China's new energy vehicle market is fiercely competitive, and companies are competing for market share and improving product competitiveness. As a leading enterprise, BYD will also combine its own development strategy to maximize benefits. Only by in-depth cooperation and negotiation of interests can we achieve a win-win situation.
Regardless of whether BYD joins Huawei's automotive ecosystem, Huawei's divestment from the automotive BU is undoubtedly a big step in Huawei's success. Huawei Automotive will continue to adhere to the strategy of open cooperation and cooperate with more automotive companies to jointly build an open platform for electrification and intelligence in China's automotive industry. Both Huawei and BYD will play an important role in China's new energy vehicle market and promote the development and progress of China's new energy vehicle industry.
Summary. With the divestiture of the automotive business unit, Huawei's automotive business has opened a new chapter. After the divestment, Huawei Automotive will continue to focus on building an open platform for electrification and intelligence for China's automotive industry, and cooperate with more automotive companies. According to Yu Chengdong, head of Huawei's automotive business department, it is not just a matter of selling a few cars, but making Huawei's systems and components the standard for the entire Chinese automotive industry. As a leading enterprise in China's new energy vehicle field, BYD's participation in Huawei's automotive ecosystem will certainly play a huge role in promoting Huawei's automotive business. However, whether BYD will join Huawei or not requires further negotiations and consultations. Regardless of the final outcome, the divestiture of Huawei's automotive business is already a big step forward and shows that Huawei's grand ambition in the automotive field is about to be realized.