Huawei Steps Into EV Market With New Intelligent Driving Brand

In a significant move within the electric vehicle (EV) sector, Huawei, the Chinese technology giant, announced the launch of a new software brand dedicated to intelligent driving, named Qiankun. This announcement was made on Wednesday, ahead of the Beijing auto show, signaling Huawei's ambition to cement its position in the burgeoning EV market. The Qiankun brand, inspired by celestial and terrestrial elements, is set to offer comprehensive self-driving systems that encompass the driving chassis, audio, and driver's seat functionalities.

Jin Yuzhi, CEO of Huawei's Intelligent Automotive Solution (IAS) business unit, shared insights into the company's strategic direction for Qiankun. He highlighted that 2024 is expected to be a watershed year for the mass commercialization of smart driving technologies, with an anticipated 500,000 vehicles equipped with Huawei's self-driving system to be operational by year-end. Furthermore, Jin revealed plans for the launch of over 10 car models integrated with the Qiankun system within the next year, marking a significant milestone in Huawei's automotive journey.

Image Courtesy: Huawei

Huawei's Strategic Pivot to EVs

Huawei's foray into the smart car arena began in 2019, with the tech conglomerate aspiring to be the Bosch of the intelligent EV era. The company aims to supply cutting-edge software and components to its partners, a vision that is gradually materializing through its various collaborations with Chinese automakers. In a strategic move to bolster its automotive ambitions, Huawei disclosed in November that its smart car unit would be spun off into a new entity. This subsidiary will inherit the core technologies and resources of the original unit and is set to attract investments from notable partners, including Changan Auto.

The company has made significant strides in the EV market, unveiling seven EV models in collaboration with Chinese automakers. These models have reportedly been well received in the market, showcasing the potential of Huawei's partnerships. The range includes three Aito brand models in partnership with Seres, the Luxeed S7 sedan developed with Chery, two models under the collaboration with Changan Auto-backed Avatr, and one model with BAIC-owned Arcfox. Additionally, the recent unveiling of the S9 sedan under the premium Stelato brand, in collaboration with BAIC, underscores Huawei's commitment to diversifying its EV portfolio.

Challenges and Opportunities in the EV Market

Huawei's expansion into the electric vehicle domain comes at a time when the global auto industry, particularly in China, faces intense competition and challenges such as slowing sales and overcapacity concerns. The Chinese market, the largest auto market globally, is witnessing a fierce price war among over 40 brands competing for consumer attention. In a strategic response to these market dynamics, Huawei-backed Aito recently announced substantial discounts of up to $2,760 on its new M7 SUVs until the end of April, aiming to attract more consumers amid the competitive landscape.

As Huawei continues to navigate the complex terrain of the EV industry, its latest endeavors, including the launch of the Qiankun software brand, highlight the company's proactive approach to harnessing opportunities and addressing challenges in the intelligent driving space. With ambitious plans for the commercialization of smart driving technologies and a growing portfolio of EV models, Huawei is poised to make significant inroads into the automotive sector, shaping the future of intelligent driving.