Can Huawei reinvent itself as a successful car brand with its smartphone business still reeling from US trade sanctions?

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At its Smart Life showroom in downtown Shenzhen, Huawei Technologies Co displays everything from tablets to vacuum cleaners as it seeks to woo consumers in China’s southern tech hub. But the most eye-catching offering from the Chinese technology giant is a navy blue sport-utility vehicle, the Aito M5, which Huawei launched last week in its latest bid to crack the...

South China Morning Post/Handout

HarmonyOS currently runs on 220 million smart devices such as phones and watches. Smart Cockpit helps drivers and passengers control vehicle functions such as navigation and music seamlessly, much as they would use a Huawei smartphone. Meanwhile, the Alpha-S developed by Arcfoxcar and which uses Huawei’s HI automotive solution, sold only 2,100 vehicles since an April launch. In comparison, Tesla sold 52,859 vehicles in China in the month of November alone. Huawei HI is an intelligent automotive solution that includes cloud services.

Compared to Huawei, which is a household name in China, the Chongqing carmaker is obscure, currently loss-making and had only a 1 per cent share of China’s car market last year, meaning that Seres cannot compare with Huawei when it comes to brand value. Huawei, which began life as a telecoms equipment maker and is still one of the world’s biggest network equipment makers today, made a successful leap into Android smartphones in 2009 — turning itself into a serious global challenger to Samsung Electronics and Apple within a few years.

“China needs 30 million more cars each year and the number is growing,” said Huawei’s rotating chairman Eric Xu in April. “Even if we don’t target the market outside China, and if we can earn an average of 10,000 yuan from each car sold, the business is already good enough for us.”

 

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