Huawei Accelerates Automotive Ambitions with New Smart Car Unit
Chinese tech giant Huawei has established a dedicated smart car unit, Shenzhen Yinwang Intelligent Technology Co Ltd, as part of its growing commitment to the automotive industry. The new subsidiary, wholly owned by Huawei, is based in Shenzhen, the company’s headquarters, and will focus on the “manufacturing and sales of intelligent car systems and equipment.” With an initial capital of 1 billion yuan (about $140.5 million), the move marks another significant step in Huawei’s automotive ambitions.
Huawei, originally known for its presence in tech and telecommunications, has diversified into the electric vehicle (EV) market, launching its first battery-powered vehicle in 2021. Last year, the company unveiled the Luxeed S7, its first electric sedan, and the Aito M9, an electric SUV targeting high-end consumers. The establishment of the smart car unit further underscores Huawei’s commitment to advancing its position in the automotive sector.
The move into the automotive industry aligns with Huawei’s broader strategy of diversification amid challenges posed by US export restrictions. The company’s renewed focus on smart cars is evident in its HarmonyOS for Automotive software system, designed to provide advanced features and sync seamlessly with Huawei’s mobile operating system.
Huawei’s venture into smart cars comes amid increasing collaboration between tech firms and automakers to develop advanced software systems for vehicles. The Chinese carmaker BYD, backed by Warren Buffett, recently introduced Xuanji, an AI-powered system for cars, aimed at enhancing safety and comfort through responsive features.
As China continues its rapid development of advanced technology, particularly in artificial intelligence (AI), the government has unveiled draft guidelines to standardize the AI industry. The planned rules include forming nationwide and industry-wide standards for AI by 2026, participating in at least 20 international AI standards, and encouraging adoption of these standards by at least 1,000 companies.
Huawei’s establishment of the smart car unit aligns with broader trends in the tech industry, where AI-driven innovations are becoming increasingly integral to the automotive landscape.
