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Huawei accelerates smart car solutions business to raise cash for chips, AI, and more
Huawei is planning to boost the smart car solutions business to raise cash for chips, AI, and other products. The company is finding a useful way to stand firm against challenges that arrived due to U.S. restrictions. Perhaps, the auto solution is one of the best options.
The Chinese tech giant got stuck in the U.S. sanction in 2019 in the name of security threat. Eventually, this prohibition cut around 28% of the total revenue for two years: 2020 to 2022. It seems as if the Huawei smart car solution business will help to retain this loss.
Huawei’s Smart Car Solutions: History
According to the information, the 2022 sales revenue of Huawei smart car solutions was around $256 million. Though it is a smaller amount, it still aids the company in raising the overall cash collection for the other significant segments of the industry.
Even though Huawei doesn’t make cars and does not own the automobile business, it helps other car manufacturers develop intelligent vehicles via its advanced and valuable automobile solutions. For instance, HarmonyOS smart cockpit, ADS 2.0, lidar, camera, and more.
On the flip side, the tech giant continues to collaborate with Chinese car makers to hype its industry supply chain in the native region. A good example is the AITO M7 launched in September 2023, which collected over 80000 orders within 50 days of unveiling.
The company has also insisted top tech giants like Mercedes and Audi invest in its smart car software and relevant hardware firms. This association will further help in expanding the smart car solution business outside the home ground.
Although things aren’t that easy. The demand for Chinese smart cars and EVs slowed down in recent times. Moreover, the U.S. ban tag on Huawei makes it inferior to foreign automobile corporations.
Yet, Huawei is joining hands with firms like SERES, Chery, BAIC, and more to strengthen its smart car solutions surface. These are major exporters and could bring new opportunities. This is how Huawei expects that the elevation in the smart car solutions business will raise cash for the chip, AI, and other important developments.
(Source)
