At the heart of Huawei’s electric vehicle (EV) division in Shenzhen, a massive screen narrates a profound shift in human mobility: from horses to cars, and now from internal combustion engines to driverless electric vehicles. The tech giant, while absent during the initial automotive revolution, is determined to shape the next one, despite being under heavy U.S. sanctions.
Huawei, the world’s largest telecoms group and a leading smartphone producer, aims to dominate the lucrative segments of the EV industry as it evolves through electrification and automation. The company’s strategy focuses on providing hardware such as telecoms systems, screens, and infotainment systems, as well as developing advanced driverless car software and chips. However, Huawei has ruled out manufacturing vehicles itself, preferring instead to position itself as the “Chinese version of Bosch,” referencing the German industrial giant’s dominance in automotive parts.
Huawei’s extensive expertise in telecommunications, chip design, and smartphones positions it as a formidable player in the EV space. Analysts highlight how Huawei’s technological prowess, particularly in autonomous driving and infotainment systems, provides synergies that traditional automakers struggle to match. Vincent Sun of Morningstar noted the urgency for carmakers to invest heavily in research and development, lest they become obsolete like Nokia in the smartphone era.
Huawei’s EV ambitions have seen it spend over $5.6 billion on research and development in the sector over the past five years. Last year, its automotive unit reported revenues of $655 million—double the previous year but still less than 1% of the company’s $96 billion total revenue.
To solidify its presence, Huawei formed a dedicated EV entity, Yinwang, earlier this year. This unit manages the company’s EV-focused systems, including its advanced autonomous driving software. Yinwang has attracted significant investment, including stakes from Changan Automobile and CATL, which valued the entity at $16 billion.
Huawei has partnered with several Chinese automakers, including Chery, Seres, BAIC, and JAC, to integrate its technology into their EV offerings. Sales of EVs developed through these collaborations reached 353,600 units in the first ten months of the year, with Aito—a brand co-developed with Seres—capturing 4% of China’s battery and plug-in hybrid market.
In addition, Huawei supplies its cutting-edge autonomous driving systems to BYD, which is rivaling Tesla for the title of the world’s largest EV maker. Despite geopolitical tensions, foreign automakers in China, such as Audi, Toyota, and Nissan, are also collaborating with Huawei to leverage its advanced driving technologies and remain competitive.
Huawei’s entry into the automotive industry comes amidst persistent U.S.-China tensions. The company faces allegations from Washington of enabling Chinese state surveillance, accusations that have led to severe restrictions on its telecoms sales and access to advanced chip technology. However, Huawei’s partnerships with major Chinese state-backed automakers offer a robust domestic foundation to counteract these challenges.
Globally, Huawei’s foray into EVs raises questions about how foreign markets will perceive its offerings. Critics argue that while the company excels technologically, geopolitical controversies could impede its ability to expand internationally.
Beyond passenger EVs, Huawei is exploring opportunities in commercial vehicle automation, targeting sectors like mining, logistics, and port operations. The company plans to integrate these fleets with its extensive global data centers, enabling seamless operations and unlocking new revenue streams.
Christoph Weber, an executive at AutoForm, emphasized how Huawei exemplifies the convergence of technology and automotive industries, describing the company as an existential threat to traditional automakers. As Huawei continues to blur the lines between tech and mobility, the pressure mounts on legacy manufacturers to adapt or risk irrelevance.
