Chinese carmaker BYD is leading the trends and proves to be a serious competitor to Tesla. BYD will partner with Huawei to advance its autonomous driving system. BYD says it will use the technology in the version of off-road vehicles.
China’s BYD to lead autonomous driving
In a recent announcement, BYD revealed it will use Huawei’s advanced technology in its advanced autonomous driving system in its off-road Fangchengbao EVs. BYD signed an agreement with one of the world’s technology conglomerates which was announced on Tuesday.
In the brand new version of the Bao 8 SUV under the Fangchengbao lineup, this car will be the first BYD model to sport Huawei’s Qiankun intelligent driving system and go on sale later this year.
The tie-up follows BYD’s efforts to move upscale as it aims to increase the sales of its premium brands of Denza, Fangchengbao and Yangwang to improve profitability.
Looking at the three brands, it is reported they accounted for just 5% of BYD’s total sales in the first half, according to data from China Association of Automobile Manufacturers.
“The EV market is rapidly growing and is the clear future of the automotive industry. OEMs have had widely differing responses to the EV transition as an opportunity and a challenge; some have fully embraced the technology, while others are being dragged into it against their wishes. This is reflected in their innovation and implementation capabilities,” stated an industry analyst at ABI Research, Dylan Khoo.
BYD dominates the EV market
Coming back to the use of Huawei technology, the move also highlights the pressure on the Chinese EV champion to play catch-up against rivals in beefing up smart driving configuration with in-house development.
“BYD has dominated the EV market with a significant cost advantage thanks to its so-called vertical integration strategy by making the key components such as batteries on its own,” reports Reuters.
“The company has been investing heavily in developing its advanced driver-assistance system (ADAS) by hiring thousands of engineers since last year.”
In upmarket models, BYD still relies on external suppliers for such intelligent features in upmarket models, including using Momenta ADAS in its Denza cars.
Meanwhile, the partnership with Huawei also reflected the growing presence of the Chinese tech company in the EV sector as a major supplier of ADAS. Volkswagen’s Audi will also use Huawei’s ADAS in its EVs for the China market.
The Autonomous Revolution
With the rise in the demand for cars that drive themselves, there is still reluctance from some drivers and just in the United States, highway fatalities have increased significantly in recent years, despite all the advances in driving technology recently.
“While the interest in self-driving tech is high among automakers, it could be argued that technology which prevents impaired and distracted driving would do more to lower traffic accidents than all the autonomous technologies that are currently attracting billions in investments,” reports CleanTechnica.
In terms of takeaways, following the BYD announcement that it is using Huawei technology means there will be yet another reason why its products may never reach customers in the US, where fear of Chinese technology is strong, especially where Huawei is concerned.
“The automotive industry is in a state of transition, and this assessment demonstrates the varying capabilities of OEMs as they try to make it through this period and come out on top. In some areas, the new upstart EV brands are a generation ahead of many ‘legacy OEMs’,” reflects Khoo.
“The incumbents must look to technology solutions providers to revolutionize their capabilities and ensure they can maintain their position as the industry electrifies.”