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Several prominent Chinese car manufacturers are facing delivery postponements for their top electric vehicles (EVs) due to complications within Huawei's crucial computing unit production chain. The predicament hinges on the high-tech Huawei MDC 810 unit,
A linchpin in advanced driving assistance, the MDC 810 symbolizes Huawei's lofty goals of dominating EV software and component supply.
Impact on Major Chinese Automakers
Changan Auto and Chery Auto, collaborators with Huawei on their high-end EV brands, have raised concerns. Reuters reported that they are actively seeking solutions due to the adverse effects of these delays.
In particular, Changan Auto discusses navigating this bottleneck while contemplating a significant stake in an upcoming spin-off from Huawei's Intelligent Automotive Solution (IAS) division. The premier automaker intends to acquire up to 40% ownership of this spun-off entity.
US News noted that not only the big players are feeling the impact. Seres, a smaller but ambitious car manufacturer, has also found its production timeline disrupted by the same issue.
Shortage of Key Components
The culprit behind the turmoil is a shortage of pivotal components required for the MDC 810, a module that enhances vehicle intelligence and aids drivers with sophisticated assistance features. This hitch strikes at a particularly challenging time as Huawei strives to attract more investors for its IAS unit, which has been a distinct entity for the last four years and is on the cusp of independence.
This situation illustrates the ripple effects of supply constraints in the smart EV landscape, affecting production schedules and, ultimately, the plans of end consumers.
As industry eyes watch how Huawei and its automotive partners mediate this obstacle, Huawei has not commented on the matter yet. Chery and Seres also have not offered insights on the record. Changan Auto directed inquiries about this matter to its Avatr division, which chose not to respond.
Photo: Huawei Newsroom
