Huawei reportedly aims to invest over $1 billion in autonomous driving and electric car technologies. These include partnerships with automakers, driving the intelligent vehicle sector forward.
This massive investment intensifies the competition of the tech giant against Tesla, Xiaomi, NIO, and XPeng. According to Huawei rotating chairman Eric Xu, Huawei’s autonomous-driving technology has already beaten Tesla, specifically in achieving over 1,000 kilometers (621 miles) of moving on the streets without human intervention.
In detail, Huawei will partner with three automakers — BAIC Group, Chongqing Changan Automobile Co, and Guangzhou Automobile Group Co. — to manufacture autonomous cars that would carry the Huawei name as a sub-brand. The company aims to get its logo onto the electric cars, using Intel Corp’s approach to its microprocessors on computers.
By doing this smart mobility initiative, Huawei plans to capitalize on China’s 30 million annual car addition to earn an average of 10,000 yuan per car. Moreover, Huawei is betting big on the green, autonomous, and connected vehicle segment. Statistics of electric vehicles (EV) sales in China can jump over 50% in 2021 due to cleaner automobiles and cost reduction.