Telecommunications equipment giant Huawei Technologies Co., Ltd. this week signed a partnership agreement with Chinese state-owned automaker Dongfeng Motor Group. The new partnership is centered around Dongfeng Motor’s “new energy” vehicle brand “Voyah.” Dongfeng shares the status of China’s “Big Four” automakers with FAW Group, SAIC Motor and Changan.
The partnership, announced on Monday, proposes to incorporate various Huawei technologies into Dongfeng turbines. This includes cutting-edge possibilities such as autonomous driving and infotainment software. As announced in a press release, “The two companies will jointly create the ultimate intelligent travel experience based on user needs. Through joint exploration and innovation in various fields, they will leverage the power of intelligent technology. We aim to accelerate commercialization at scale.”
Further details of the partnership were not elaborated further. Nevertheless, it is speculated that Voyah will adopt the autonomous driving system “Huawei Inside”, which integrates the Harmony operating system and HiCar solution. The system is expected to achieve Level 3 autonomous driving, suggesting the vehicle will be able to manage most driving tasks, although human intervention may be required in some situations.
Voyah has set an ambitious goal of doubling production next year, following the delivery of a massive 50,000 vehicles last year. The decision was announced at a meeting of the partners yesterday.
Known for its aggressiveness and innovation, Huawei has steadily increased its presence in China’s automotive sector in recent years. In fact, since 2021, the company’s investments in the industry have totaled $1 billion. This initiative is not all that surprising considering that China is one of the fastest growing electric vehicle (EV) markets in the world. The EV sector is expected to penetrate 40% of the domestic auto industry this year. Huawei is not missing out on such a huge opportunity. Huawei has taken a more active interest in this fast-growing industry, given that international embargoes have hampered normal telecommunications operations in many Western markets.
Last November, Huawei announced a joint venture (JV) with Changan Automobile, a member of the so-called Big Four. The partnership will see Huawei redirect key technology and resources from its smart car division to the newly formed joint venture, in which Changan will take up to a 40% stake. The joint venture will focus on areas already being researched by Huawei’s Intelligent Automotive Solutions (IAS) business unit, such as intelligent driving software and digital cockpit systems. This marks a major shift in Huawei’s focus from the telecommunications sector to the automotive industry.