Huaweis no car Manifesto may not make players in other industries feel relaxed. Instead, they will be more cautious about this competitor.
Huawei does not build cars. It focuses on ICT technology to help car companies build good cars. During this years Shanghai auto show, Xu Zhijun, chairman in office of Huawei, on behalf of the technology giant, issued the April declaration.
This is the first time Huawei has participated in the auto show and formally clarified its identity as an incremental component supplier for ICV.
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The so-called increment is actually similar to the expression of no car building, said Lu Shuai, an analyst at parson consulting. Huawei is trying to avoid overlapping with traditional auto manufacturing and parts supply.
As the top decision maker of Huawei, Ren Zhengfeis speech in April this year pointed out more directly the action and Inaction of the technology company in the automobile related field.
He said Huawei would focus on directions involving algorithms and mathematics, while areas such as physics and Chemistry - such as automobile manufacturing and power battery manufacturing - would avoid contact. In the future, the enterprise will focus on the Internet of vehicles technology including connectivity, on-board computing and automatic driving. For sensor technologies such as lidar, the focus is on ICT core (Information Communication).
In more than half a year since then, the expression no car building has been repeatedly mentioned by Huawei in various public occasions, almost becoming a label of its automobile business.
The decline of value in car building
Last Tuesday (October 22), Xu Zhijuns statement at the 2019 world intelligent network auto conference seemed to give the outside world a clearer understanding of Huaweis repeated emphasis on no car building.
He acknowledged that the advantages of traditional car manufacturers are not Huaweis.
But for Huawei, this is not a problem. Because today, the substitution effect of smart cars on traditional cars is gradually emerging, a deep value pool is forming in the frontier fields such as intelligent Internet connection. More importantly, according to Huaweis calculation, the value of this field will account for more than 70% of the automobile industry in the future, far exceeding the traditional body and chassis.
In the future, the car building may become a relatively narrow link in the value chain of the automobile industry. Lu Shuai said.
The data provided by some industry organizations seem to confirm this trend. According to statista data, the global passenger vehicle market is expected to reach US $1.5 trillion in 2022, of which the scale of Chinas passenger vehicle market is expected to grow steadily from US $510 billion in 2018 to US $630 billion, and the sales volume is expected to grow from 24 million to 29 million.
At the same time, the proportion of automobile electronic parts is continuously increasing. According to China business industry data, the proportion of automobile electronic parts in the whole vehicle has increased from 18% in 2013 to 23% in 2018, while CIC Research Center for consulting industry predicts that this proportion will reach 50% in 2020. However, the data of China Automobile Industry Association shows that in China, this proportion is still at a low level and has a huge development space. In 2018, the proportion of local auto electronic parts was only 14%.
On the other hand, China industry information network predicts that the global market size of automotive electronic parts will grow from 2175 US dollars in 2018 to 240 billion US dollars by 2020.
The sharp increase in the use of automotive electronic components is believed to be related to the trend of intelligent interconnection and automatic driving in the future. Prospective industry research institute predicts that by 2021, the market of Chinas intelligent Internet automobile related industries will grow from 269.6 billion yuan in 2017 to 401.4 billion yuan, of which the market scale in the field of automatic driving will continue to maintain a high growth of more than 10%, and reach 127.5 billion yuan around 2022.
This means that even modest increment is enough for Huawei to step into the auto industry.
New car Huawei is very busy
Although eager to get rid of the relationship with car building, the news center on Huaweis official website has released at least one auto related news every month in the past year.
From the information released by the technology company, expanding its circle of friends within the automotive industry is a key strategic step. Up to now, Huawei has worked with FAW Group, GAC group, BAIC group, BAIC new energy, BYD automobile, JAC automobile, SAIC Group, SAIC general Wuling, Weima automobile, Dongfeng Automobile, Changan Automobile, Audi China, Great Wall automobile, Southeast automobile, Yutong Bus and other automobile manufacturers in 5g vehicle networking, c-v2x, automatic driving, intelligent electric vehicle platform Cooperation in the field of Internet of vehicles ecology.
In a sense, Huawei is not only seeking strategic cooperation, but also looking for potential customers for future business development. Analyst Shen Qifei said. So from their partner list, you will see more traditional automakers with less business intersection, while those emerging automakers that initially used intelligence and Internet as product keywords rarely appear.
In addition, Huaweis 5g + c-v2x vehicle communication technology, automatic driving network arrangement solution (Huawei core network automatic driving engine), L4 level full stack intelligent driving solution are all paid close attention in the industry.
What Tesla can do now, we can do, Xu Zhijun told the media during this years world intelligent networking conference about Huaweis progress in the field of automotive technology
Xu Zhijun said that at present, in addition to the development of automatic driving software, Huawei has ready-made technology, experts and human resources for other electric vehicles and automatic driving.
In fact, Huawei is not strictly a new car player. As early as 2009, when peoples impression of Huawei remained in U8220, u8230 and other mobile phones, the technology company began to develop car modules.
At that time, Huaweis enterprise positioning was still a relatively single telecom equipment business. In that year, its sales revenue bucked the trend of 19% in the global telecom market downturn, and its ranking among global peers jumped from fourth to second.
More importantly, in 2009, Huaweis net cash flow from operating activities increased significantly, which greatly eased the pressure on cash flow. Huaweis net cash flow from financing activities in the year turned from positive to negative, indicating that Huaweis external financing is less than repayment and dividend, which shows that Huawei in 2009 has no shortage of money.
Financial abundance may provide Huawei with freedom to conceive new ideas. Since then, as a new car player, Huawei has begun to fill its schedule.
In 2010, Huawei took the lead in proposing the concept of cloud management end, in which end refers to the intelligent automobile terminal including intelligent cockpit, intelligent driving, intelligent power and intelligent gateway, management refers to v2x Hualian interworking and mutual cooperation realized through intelligent networking, and cloud refers to the cloud platform of vehicle networking that provides cloud computing capability and service content.
In 2013, Huaweis Internet of vehicles business department was officially established. In that year, the enterprise released vehicle modules me609t and me909t supporting 4G, as well as front mounted vehicle mobile hotspot da68 and vehicle online diagnosis system da3100.
In the three years 2017-2019, time flies fast for Huawei, which is obsessed with cars. The enterprise successively released the Intelligent Cloud hardware platform atlas, 4.5 baseband chip Baron 765, oceanconnect vehicle networking platform, independently developed AI chip shengteng 310, shengteng 910, L4 level automatic driving computing platform mdc600 based on shengteng 310, 5g baseband chip Baron 5000 and Atlas Artificial Intelligence Computing Platform Based on shengteng AI chip.
In addition, Huawei has also built 5g automobile alliance with Audi, BMW, Daimler, Ericsson, Intel, Nokia, Qualcomm and other automobile manufacturing and technology giants in this period, and has successively worked with Vodafone, ASTRI, Evo, turkcell, Tiandi people, China Mobile and other external partners to jointly drive 5g long-distance automatic driving, vehicle technology based on c-v2x, city Cooperation was carried out in the aspects of traffic safety cloud solution, wireless network automatic driving, Nb IOT electric vehicle management, etc.
At the end of May this year, Huaweis intelligent car solution Bu was established. A R & D and business entity oriented to the automobile industry was officially generated in this technology enterprise. This entity includes the product department responsible for intelligent driving, intelligent cockpit and intelligent car cloud, the front office department responsible for strategic business development, policy and standard patents and marketing, as well as human resources and quality Back office departments such as volume operation and financial management.
Although no subsidiary has been established for the automobile business, the integrity of Huaweis intelligent automobile solution Bu is enough to show the outside world that the enterprise has officially crossed the border between the technology industry and automobile.
Its Huaweis gentleness not to build cars
Huawei has pointed to Tier 1 first-class suppliers for its automobile business in several occasions. According to CITIC Securities, Huaweis annual sales volume in the field of intelligent automobile electronic parts is expected to reach US $50 billion in the next 10 years, which is about the same as that of Bosch, mainland, electric equipment and other multinational enterprises. In 2017, Boschs auto related business revenue was about 47.4 billion euros.
In addition to the world-class auto parts suppliers mentioned above, technology giants including Baidu, Alibaba, Tencent and Google are also likely to compete with Huawei in the future.
In recent years, Baidu has accumulated platforms and systems such as Apollo, Baidu dueros (bottom), small car OS, etc. in terms of intelligent vehicle interconnection and automatic driving. Ali also built a zebra smart travel system based on Alios, and made an ecological layout around the above system. Tencent has successively launched the aiincar system, Tencent car intelligent solutions, and also has relevant layout in terms of automatic driving. Googles Android system has now become the underlying system of the mainstream smart car, and its parent company, alphabets waymo, is also regarded as a pioneer in the field of automatic driving.
However, compared with these technology companies, Huawei, which aims to become an incremental supplier of intelligent Internet vehicles, seems to be more comprehensive in terms of technology and business layout.
In the visible range, an intelligent Internet driving car will involve operating system, human-computer interaction, high-precision map, cloud computing, chip, AI, big data, 5g, v2x, automatic driving and many other technologies.
According to Huaweis existing technology and business layout, all the above fields are involved. For example, in terms of chips, Huawei has Kirin, Barron, shengteng, Kunpeng, Lingxiao and other series. In terms of computing platforms, it has atlas and MDC. In terms of vehicle networking platforms, it has oceanconnect. In terms of c-v2x, it has 4G / 5G based roadside unit (RSU) and T-box. In terms of vehicle network cloud, it also provides IVI vehicle entertainment system.
In addition, in the fields of intelligent cockpit, intelligent driving, intelligent power, etc., Huaweis current independent research scope covers the sensing system composed of camera, millimeter wave radar, LDS, differential GPS, as well as power components such as electric control (MCU), motor, etc.
Such key elements ensure that Huawei has technical reserves in the three fields of end, management and cloud defined by Huawei.
However, in terms of map, voice and other basic feature packages, dashboard, microphone array, ar-hur, ultrasonic radar, integrated control, reducer, OBC three in one, power battery and middleware, the enterprise still needs to obtain relevant resources through external cooperation.
Although there is still a fog of war in Huaweis auto industry, outstanding R & D capabilities may make up for the companys deficiencies in some non professional fields in a short time.
Huawei is a very R & D oriented company. Shen Qifei said. As of 2018, 45% of Huaweis 188000 employees are related to R & D, he cited a group of data.
At present, Huawei has set up 16 R & D centers and 36 joint innovation centers in China, the United States, Germany, the United Kingdom, France, Italy, Russia, India, Sweden and other countries and regions. Its R & D scope covers cutting-edge technologies in wireless network, fixed network, optical fiber communication network, future network, information communication standards and chip design.
According to the 2018 financial report released by Huawei in March this year, the companys R & D expenses last year reached 101.5 billion yuan, accounting for 14.1% of sales revenue. In the past 10 years, Huawei has invested more than 480 billion yuan in R & D.
In addition, in this years Derwent global top 100 innovative enterprises list, Huawei is impressively listed. This is the fourth time the company has entered the list. For reference, Lenovo and BYD, both Chinese companies, have entered the list for the first time this year.
It should be said that Huaweis strategy to enter the automotive industry is very clear. It is determined not to touch the areas that it is not good at. Once it believes that it has the ability to enter, it will increase its R & D efforts. Shen Qifei commented. Perhaps for many competitors, not building cars is Huaweis gentleness.
Source: editor in charge of interface news: Zhong Qiming