Huawei’s Entry into Smart Driving Wins EV Market and the West Fears

BMW and Huawei are working together to create smart applications based on the Harmony Intelligent Mobility Alliance (HIMA) operating system.

The shift of Xiaomi Corp into the car industry has been a prominent success story. But what is less known is that its competitor, Huawei Technologies Co., has also established a dominant position in China’s highly competitive electric vehicle (EV) market. The twist is that they did not produce their cars but developed intelligent driving software that has entered stations of well-known brands like BYD and BMW AG.

Its software not only helps sell cars to Chinese drivers but also gathers extensive data that could be later used to crack the code for self-driving technology.

In the electric vehicle (EV) era, people expect a car to perform more than just basic functions like emergency braking or parking sensors. They want something more like who gets to control the vehicle.

However, after a deadly accident with the Xiaomi EV the previous month, Huawei and some other intelligent driving software are feeling pressure. It has created a renewed focus on the claims around assisted driving technology.

As much as intelligent driving technology creates a new revolution in the automobile industry, it also causes national security issues and data privacy. Governments in the West, especially the United States, are already guarded about Huawei technology due to its alleged links with the Chinese government.

Since its technology has real-time access to data like public roads, which many countries fear could be exploited. So, they restrict the technology in their cars, which clouds the company’s ambitions just as it is getting started.

Tu Le, founder of Detroit-based automotive advisory firm Sino Auto Insights, states that Huawei can continue to have its crown in the EV market as long as it upgrades.

But, the main question is to convince foreign manufacturers to use their system.

The heart of its strategy is the Harmony Intelligent Mobility Alliance (HIMA), a factory-to-showroom setup allowing consumers to order cars using Huawei software via its online stores or authorized distributors.

Apart from HIMA, its technology is integrated into Audi’s Q6 e-tron and A8 L models, Chongqing Changan Automobile Co’s Deepal and Avatr series, and even BYD’s Fang Cheng Bao 8 and 5 models, even though BYD offers its advanced driver-assistance systems known as God’s Eye.

Meanwhile, BMW and Huawei are working together to create smart applications based on the Harmony Intelligent Mobility Alliance operating system. According to a statement from the German car manufacturer last month, Huawei’s HiCar system (which connects devices with cars via mobile app) will mesh into BMW vehicles produced in China starting in 2026. It also pointed out that 25% of BMW app users in China have Huawei smartphones.

Some industry players felt insecure about Huawei dominating the market. Chen Hong, the former SAIC Motor Corp chairman, made ‘bold’ headlines that he did not wish to give up the soul of vehicles to companies like Huawei.

However, given the ‘winner takes all’ dynamics in artificial intelligence and high barriers to creating a system that can compete with Huawei, resistance seems to be diminishing.

In February, SAIC announced a partnership with Huawei under a new brand, Shangjie, to restore SAIC’s sales in the Chinese market.

Huawei’s deputy chairman, Eric Xu, stated that since not every carmaker can invest in smart car technology, the company plans to develop high-quality systems that carmakers can use directly.

Xu wants to create an open platform for all carmakers to join, where it is not just a buy-and-sell relationship between them but more like a collaboration where they share risks and rewards equally.