Tech giants and their automobile dream: Status report

Tech giants and their automobile dream: Status report

Tech giants and their automobile dream

In the last few years, from Sony to Huawei, Apple to Xiaomi; traditional technology giants have been making major headlines with their automotive vent

In the last few years, from Sony to Huawei, Apple to Xiaomi; traditional technology giants have been making major headlines with their automotive ventures throwing challenges to conventional auto OEMs.

The automobile industry around the world is going through a rapid and multi-dimensional transformation over the last few years. With the advent of new technologies including connectivity, electric propulsion technology, autonomous driving etc, the industry is witnessing a lot of changes. One such change is the emergence of conventional technology companies as automakers.

In the industry’s massive shift to electric vehicles, legacy automakers and mobility startups are not the only ones trying their luck with vehicles powered by electric propulsion systems. Several global technology companies have been bringing their respective electric vehicles. In the last few years, from Sony to Huawei, Apple to Xiaomi – traditional technology giants have made major headlines with their automotive ventures.

The technology giants’ association with the mobility industry is nothing new. However, to date, the technology companies used to be suppliers for auto manufacturers. But, in the last couple of years, they have evolved drastically and to become new-age mobility companies as well as automobile manufacturers.

However, things have not been a cakewalk for these tech giants in their desired path in the automotive world. Here is the status report about the present scenario of these technology companies’ automotive projects.

Apple

Despite promising a lot through its Project Titan, Apple met little success and the project finally reached a make-or-break point recently due to rising costs and delays. This finally compelled the company to call off its fully autonomous electric car project after a decade since it started sometime in 2014, which was dubbed as one of the most ambitious projects in the history of the tech giant known for its products like iPhone, iPad and Macbook.

Xiaomi

While a tech company on the east side of the Pacific Ocean failed to materialise its dream of making an autonomous electric car, on the west side of the ocean, Chinese tech giant Xiaomi stunned the world with its first EV SU7. A suave all-electric sedan, the Xiaomi SU7 was showcased in the flesh at the Mobile World Congress 2024 in Barcelona. Xiaomi announced the development of the SU7 in 2023. It gets power from a 101 kWh battery pack capable of providing more than 800 kilometres of range on a single charge, significantly higher than the majority of EVs currently on sale.

Sony

Sony joined hands with Honda to make its dream of building an electric car true. Christened Afeela, the tech brand has already showcased a real prototype at the CES 2023. which will spawn the production model in 2026. Before being renamed Afeela, the electric sedan was previously christened Vision S. Sony has claimed that this upcoming EV will not only be a car but will act as a testbed for a wide range of futuristic advanced technologies including autonomous driving and other digital systems.

Huawei

Another Chinese tech giant Huawei too has shown its seriousness about smart electric cars. The company had set up an EV brand called Aito in 2021 in association with Seres Group. Under the Aito brand, already three electric cars have been launched: M5, M7 and M9; while a fourth model M8 is under development. Besides that, Huawei also rolled out two new vehicles in China, including its first electric sedan, the Luxeed S7, which is designed to take on Tesla models. Just a few weeks ago, Huawei set up a separate smart car unit, in another stride forward in the Chinese tech giant’s automotive ambitions.

First Published Date: 29 Feb 2024, 15:07 PM IST


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Tech giants and their automobile dream

Huawei approaches Audi, Mercedes about investing in smart cars: Sources

Huawei approaches Audi, Mercedes about investing in smart cars: Sources


China’s Huawei Technologies has asked Mercedes Benz and Volkswagen’s Audi if they are interested in buying small stakes in its smart car software and components firm, according to three people with knowledge of the discussions.

By: Reuters
| Updated on: 11 Dec 2023, 16:44 PM

The Huawei Aito M7 is the debut car model from the Chinese smartphone maker.

The move is aimed at expanding its partnerships beyond Chinese brands, they said. Huawei, the target of U.S. sanctions since 2019, also hopes the presence of foreign investors would help defend the business from potential further geopolitical tensions, according to one of the sources who was briefed on the matter.

The Chinese technology giant said last month it will spin off its four-year Intelligent Automotive Solution (IAS) business unit which is seeking to become the dominant supplier of software and components for smart electric vehicles (EVs).

Sources have previously said the unit will be valued at somewhere between $28 billion and $35 billion.

Huawei held preliminary talks with Mercedes in recent weeks, according to two sources. One source said the German auto brand was offered a 3% to 5% stake with the valuation to be negotiated.

But Mercedes was not that interested as it wants to remain in charge of its software to sustain its premium brand positioning rather than outsource it to a supplier, the source added.

Also Read : From Huawei and Xiaomi to Apple, why tech giants are turning to electric cars

Audi’s level of interest in Huawei’s offer could not be immediately determined.

However, two of the sources said Audi and Huawei are planning a partnership to develop autonomous driving technologies for Audi. Those technologies would be used in vehicles for the Chinese market from 2025 and which would be built by the German automaker’s venture with FAW Group.

The sources declined to be identified as the discussions were confidential.

Mercedes declined to comment on what it called speculation. Huawei and Volkswagen did not respond to requests for comment. The move by Huawei comes as global automakers in China increasingly seek to partner with Chinese companies, which have pulled ahead in developing high-end features for tech-savvy Chinese consumers. Volkswagen has been working with EV automaker Xpeng and autonomous driving chip designer Horizon Robotics to develop China-specific intelligent and connected electric cars.

Audi has also partnered with SAIC Motor to develop EVs in a segment for the Chinese market it did not previously have a presence in.

Richard Yu, who oversees Huawei’s smart car business, told a forum in April that it had been difficult for European, U.S. and Japanese companies to choose Huawei as their main supplier of intelligent solutions due to U.S. sanctions. “Therefore it’s a huge challenge because we have invested tremendously,” Yu said at the time.

While many of China’s most high-profile EV manufacturers like Nio and BYD rely on their own software, Huawei has formed partnerships with smaller electric car makers like Seres Group and some big older automakers like Chongqing Changan Automobile.

Changan Auto has said it will be an investor in Huawei’s smart car business once it is spun off, owning as much as 40% along with relevant parties.

Yu said in November that Huawei had invited Seres, Chery Automobile, Jianghuai Automobile Group and BAIC Motor to invest in the smart car firm and hoped FAW Group could join as well.

Dongfeng Motor is another potential investor in the firm, sources have said.

First Published Date: 11 Dec 2023, 16:44 PM IST



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