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Huawei has signed a deal with BYD to integrate its advanced autonomous driving technology into BYD's Fangchengbao off-road electric vehicles, with the first model launching later this year.
BYD and Huawei Collaborate on EVs
Huawei announced on Tuesday that it had inked a deal with Chinese tech giant BYD to incorporate the latter's cutting-edge autonomous driving technology into BYD's off-road Fangchengbao electric vehicles, Reuters shares.
In the latter part of this year, the Bao 8 SUV, which is part of the Fangchengbao lineup, will be the first BYD model to have Huawei's Qiankun intelligent driving technology. It will also be available for purchase.
BYD's Upmarket Push in Luxury EVs
In an effort to boost profitability, BYD has been attempting to move upmarket with its Denza, Fangchengbao, and Yangwang luxury brands, which is why the partnership is a natural next step. Data from the China Association of Automobile Manufacturers shows that in the first half, sales of those three brands made up barely 5% of the total.
The utilization of Huawei technology further emphasizes the demand on the Chinese electric vehicle market leader to enhance its smart driving configuration through internal research in order to keep up with competitors.
BYD's Cost Advantage Through Integration
BYD's so-called vertical integration strategy—making essential components like batteries on its own—has given it a substantial cost advantage and allowed it to dominate the electric vehicle market.
Per US News, since last year, the corporation has recruited thousands of engineers to work on its own advanced driver-assistance system (ADAS). It uses Momenta ADAS in its Denza vehicles and other high-end models that rely on external vendors for intelligence.
The collaboration with Huawei was a reflection of the Chinese tech company's increasing role as an ADAS supplier in the electric vehicle industry. For the Chinese market, Volkswagen's Audi EVs will also use Huawei's ADAS.
