Huawei, the telecoms equipment behemoth, has signed a collaboration agreement with Dongfeng Motor Group, a Chinese state-controlled automobile manufacturer, this week. This new affiliation is centered on Dongfeng’s Voyah brand of “new energy” automobiles. Dongfeng shares its place among China’s ‘Big 4’ automobile manufacturers with FAW Group, SAIC Motors, and Changan.
The partnership, made public on Monday, proposes to incorporate various Huawei technologies into Dongfeng vehicles. This will include cutting-edge possibilities like autonomous driving and infotainment software. As announced in the press release, “both parties will jointly create the ultimate intelligent travel experience based on user needs. They aim to accelerate the large-scale commercialization of intelligent technologies through collaborative exploration and innovation in various fields.”
The specifics of the partnership were not further detailed. Nevertheless, it is speculated that Voyah will adopt the “Huawei Inside”, an autonomous driving system that merges the Harmony operating system with the HiCar solution. This system is expected to achieve level-3 of autonomous driving, hinting that the vehicle can manage most driving tasks, though human intervention may be necessary in certain situations.
Voyah placed an ambitious target of doubling their production in the upcoming year, following the hefty delivery of 50,000 vehicles last year. This decision was announced during their partner gathering yesterday.
Huawei, known for its initiative and forward-thinking, has been steadily increasing its presence in China’s automobile sector for several years now. In fact, its investments in the industry have totaled $1 billion since 2021. This effort comes as little surprise, considering China has one of the world’s rapidly growing electric vehicle (EV) markets. The EV sector is projected to penetrate 40% of the country’s automobile industry this year. Such colossal opportunity is not lost on Huawei, which, in light of international embargos impeding its usual telecoms business in many Western markets, is taking a more active interest in this booming industry.
Huawei had previously disclosed a joint venture (JV) with Changan Auto, another member of the so-called Big 4, last November. The collaboration revealed that Huawei will be redirecting its key technologies and resources from its smart car unit to this newly established JV, in which Changan is set to acquire a stake of up to 40%. The JV will emphasize areas that Huawei’s Intelligent Automotive Solution (IAS) business unit has already explored, such as intelligent driving software and digital cockpit systems. This denotes a major shift in Huawei’s focus from telecommunications into the automobile industry.
