Huawei has recently announced heavy investment in smart technology push to connect with the automobile industry and generate maximum revenue.
The Chinese tech giant has announced it will increase investment in smart-driving research and development, including more than $10 billion over the next five years to boost computing power for training, a senior executive said on Thursday.
Huawei will reportedly invest 18 billion yuan ($2.6 billion) globally in smart-driving R&D this year, including 10 billion yuan on computing power, Huawei senior vice president Jin Yuzhi said at an event in Beijing ahead of China’s biggest auto show, which opens on Friday.
Huawei is defending its lead after emerging as a major supplier in China’s smart EV sector over the past four years, driven by technologies increasingly preferred by affluent Chinese consumers over German-engineered alternatives.
A total of 38 vehicle models equipped with Huawei’s smart driving and intelligent cockpit technologies were displayed at the event on Thursday, including four Audi models and Toyota’s BZ7 developed with Guangzhou Automobile.
Huawei also unveiled its Qiankun ADS advanced driver-assistance system, which will debut in the flagship X9 six-seater SUV under the Epicland brand co-developed with Dongfeng Motor.
Following the success of reviving the Ceres with the 2021 launch of the Aito brand, Chinese automakers are increasingly partnering with Huawei to boost car sales and improve factory utilization.
Additionally, data from Shanghai-based research firm ThinkerCar shows Aitō has overtaken legacy German automakers including BMW, Mercedes-Benz and Audi in China’s market for all-fuel-type vehicles priced above 500,000 yuan in both 2024 and 2025.
“More Chinese car owners are replacing their German premium cars with domestic brands such as Aito, Zecher and Li Auto,” said Yale Zhang, managing director of consultancy automotive Foresight.
While automotive sales are a relatively small part of Huawei’s portfolio, which includes telecommunications, smartphones and cloud computing, it remains the company’s fastest-growing segment.
“Chinese brands are now being sold at even higher prices, removing the perception that they only cater to bargain hunters”
Specifically, automotive-related revenue is set to surge 72% to 45 billion yuan ($6.5 billion) in 2025, pushing total revenue up 2.2% to 880.9 billion yuan.
