Corporate with Huawei to become the most profitable car company: CEO

CEO of Huawei Smart Car Business Unit, CEO of Huawei Consumer Business Unit, and executive director, Yu Chengdong told that car companies should cooperate with Huawei to become most profitable in China.

Yu said car companies that are working closely with Huawei will become highly profitable within a year or two and later on, these will be the most profitable car companies in China. Huawei CEO reiterated that Huawei doesn’t make cars, instead, it sells car technologies and helps car companies to manufacture better cars.

For example, AITO is a Huawei ecosystem car. Through the establishment of the AITO Wenjie Ecosystem Automobile Alliance, car companies are creating new cars and better experiences for consumers.

Yu mentioned that SERES Auto was the first car maker to cooperate with Huawei via a smart car selection model. Afterward, SERES greatly improved its quality and capabilities.

In terms of marketing, Huawei also helps the car maker to showcase and sell them via its experience store around China, which is an indirect promotion but helps to grow sales sharply.

The Smart Car BU head said that the main benefit of the smart car is to share it with the car factory, so the car factory will turn losses into profits.

It is still in the investment period because its model development, research and development costs, mold costs, factory renovation, and construction costs are very expensive, when it stabilizes, the company will boast its profits. He further reveals that the company is saving a lot of money by purchasing Huawei technologies.

Talking about Huawei, Yu said emphasized that Huawei is spending a lot on smart car tech but that investment will reduce gradually and turn the loss into profit in one or two years.