Chinese electric vehicle (EV) giant BYD has announced a partnership with Huawei to integrate the tech conglomerate’s advanced autonomous driving system into its off-road Fangchengbao EVs.
The Bao 8 SUV, part of BYD’s Fangchengbao lineup, will be the first model equipped with Huawei’s Qiankun intelligent driving system. Sales are expected to begin later this year.
BYD Move to Enhance Premium Brands and Improve Profitability:
This collaboration marks a significant step in BYD’s strategy to elevate its premium brands—Denza, Fangchengbao, and Yangwang.
The company aims to boost the sales of these high-end brands to enhance profitability. According to data from the China Association of Automobile Manufacturers, these premium brands represented just 5% of BYD’s total sales in the year’s first half.
Pressure to Compete in Smart Driving Technology:
BYD’s decision to adopt Huawei’s technology underscores the pressure the company faces to keep pace with competitors in the realm of smart driving features.
While BYD has established itself as a dominant player in the EV market through its vertical integration strategy—producing key components like batteries in-house—it has also been investing heavily in developing its own advanced driver-assistance system (ADAS).
Since last year, BYD has hired thousands of engineers to bolster its in-house ADAS capabilities. However, it continues to rely on external suppliers for intelligent features in its upmarket models, such as using Momenta ADAS in its Denza vehicles.
Huawei’s Expanding Role in the EV Sector:
The partnership with BYD highlights Huawei’s growing influence in the EV sector as a leading supplier of advanced driver-assistance systems.
Huawei’s ADAS technology is becoming increasingly prevalent, with Volkswagen’s Audi set to use it in its EVs for the Chinese market. This collaboration with BYD further cements Huawei’s position as a key player in developing smart driving technologies within the EV industry.