Huawei forms new smart car company

(CNN) — Huawei created an independent smart car unit, marking another step in the Chinese technology giant’s plans to enter the automotive world.

The company on Tuesday incorporated Shenzhen Yinwang Intelligent Technology Co Ltd in the southern Chinese city of Shenzhen, where Huawei is headquartered.

According to Tianyancha and Qichacha, two corporate data providers in China, the new company is 100% owned by Huawei and will focus on “manufacturing and selling intelligent automotive systems and devices.”

According to data providers, the company has registered an initial capital of 1 billion yuan (about US$140.5 million) and has the same address as Huawei’s headquarters.

The news marks another milestone for Huawei, which has ramped up its automotive ambitions over the past three years.

The Chinese conglomerate originally became known as a technology and telecommunications giant, selling smartphones, consumer appliances, and networking equipment. But in recent years it has been hit by export restrictions imposed by the United States, which has left the company in trouble. Recently, he has made no secret of his ambition to make a comeback.

In 2021, it jumped into the electric vehicle race with its first battery-powered vehicle.

Last year, it also unveiled two new vehicles in China, including its first electric sedan, the Luxe S7, which was designed to compete with Elon Musk’s Tesla.

In December, the Aito M9 debuted, an electric SUV aimed at high-end buyers.

The presentation coincides with the launch of its first electric car by its Chinese rival Xiaomi, suggesting that the competition between the two companies has extended to another area.

The new vehicles join the Chinese car market, the world’s largest, which has seen a price war in recent months due to fierce competition and high inventories.

However, Huawei’s new business has already found a big sponsor.

In November, a subsidiary of Chinese state-owned automaker Changan revealed it had partnered with Huawei to form a new company to supply smart systems for cars.

Huawei will create the company, which will focus on digital platforms for car interiors and other automotive systems and components, according to a statement from Chongqing Changan Automobile Co’s Shenzhen Stock Exchange.

The filing said Changan plans to take up to a 40% stake in the business, which it hopes will help advance its goals of becoming a low-carbon, technology-driven transportation company.

Huawei and Changan did not immediately respond to requests for comment on Thursday. It is unclear whether Shenzhen Yinwang is part of the November agreement.

artificial intelligence cars

Smart cars, which refer to vehicles that use advanced software or electronics systems, are becoming more common as technology companies increasingly partner with automakers.

Huawei, for example, offers a vehicle software system for automotive called HarmonyOS, which is designed to sync with its mobile phone operating system of the same name and “create a seamless experience across nearby devices”, according to the company. Is designed for.

This week, Warren Buffett-backed Chinese automaker BYD also made headlines by introducing Xuanji, an artificial intelligence system for cars.

The software is designed to make driving safer and more comfortable by reacting to “changes in the car’s internal and external environment,” the company said in a statement Tuesday.

This news comes at a time when China is moving forward at full speed in the development of advanced technology, especially artificial intelligence.

The Ministry of Industry and Information Technology on Wednesday released draft guidelines to standardize the fast-growing artificial intelligence industry in the country.

Under the planned standards, China aims to establish at least 50 national and regional standards for AI by 2026, and participate in the development of at least 20 international standards for AI by 2026.

According to the ministry, the government also wants at least 1,000 companies to adopt and implement these standards by 2026.

China has been one of the first countries in the world to regulate the sector, after publishing regulations on generative AI last July. The rules, designed to oversee the software behind popular services like ChatGPIT, came into effect in August.

Since then, China has been quick to keep pace with the United States in this growing technology.

Speaking at the World Economic Forum in Davos, Switzerland on Tuesday, a US lawmaker said the country has measured its lead over its competitors in AI in “months”, highlighting the rapid pace of development in the field.