In a bid to increase its international partnerships, Chinese language firm Huawei has held talks with Mercedes and Audi to discover their curiosity in buying stakes in its unit specializing in software program and parts for sensible vehicles, as reported by Reuters.
Aims and challenges of the phases
This transfer by Huawei goals to strengthen its relations outdoors the Chinese language market and to defend itself in opposition to doable geopolitical tensions. The corporate seeks to grow to be the dominant supplier of software program and parts for sensible electrical vehicles and lately spun off its sensible automobile enterprise unit into an impartial firm. enterprise.
Analysis and negotiations
Huawei’s sensible automobile unit is valued between $28 billion and $35 billion. The corporate is in talks with Mercedes to promote a stake of between 3 and 5 %, however Mercedes has proven little curiosity within the supply because it needs to take care of management of its enterprise. software program.
Doable cooperation between Audi and Huawei
Audi plans to develop autonomous driving applied sciences in cooperation with Huawei, as these applied sciences are anticipated for use in vehicles for the Chinese language market from 2025, as a part of a joint challenge with the FAW Group.
Present developments within the Chinese language car business
Partnerships between Chinese language and worldwide corporations are a rising pattern within the automotive business. Volkswagen is working with Xpeng and Horizon Robotics to develop sensible electrical vehicles in China, whereas Audi is collaborating with SAIC Motor to develop custom-made electrical vehicles for the Chinese language market.
Huawei’s challenges and alternatives
Huawei is going through challenges on account of US sanctions, as defined by Richard Yu, who oversees the corporate’s sensible automobile enterprise. Nevertheless, Huawei has been capable of type partnerships with corporations resembling Seres Group and Changan, which strengthens its place within the Chinese language sensible automobile market. .