Huawei heats up NEV race with new SUV

Aito M9's autonomous driving tech marks segment's rapid growth phase

Huawei Technologies Co showcased its technological muscle in its latest SUV (sport utility vehicle) model on Tuesday, as the Chinese company aims to bring cutting-edge autonomous driving features to more cars amid intensified competition.

Huawei's efforts for new growth engines amid the prolonged US government restrictions have thus progressed further with its sustained push into the burgeoning new energy vehicle or NEV sector, experts said.

Yu Chengdong, head of Huawei's smart vehicle business unit, said at a product launch event in Shenzhen, Guangdong province, that it took three years for Huawei and Chinese carmaker Seres to co-develop the new Aito M9 SUV.

Yu said the Aito M9 features high-level autonomous driving technologies like navigating itself on urban roads and expressways without reliance on high-definition maps, which are often considered a must for high-level autonomous driving.

For long-haul trips, the system requires one manual intervention per 200 kilometers; and in urban scenarios, it can maneuver itself into or out of fast traffic scenarios like "seasoned drivers", Yu said.

That is achieved in part by the vehicle's combination of 27 sensors, including high-definition cameras and lidars that can detect objects more accurately and faster, Huawei said.

Artificial intelligence or AI technologies and object-detection networks are also leveraged to support high-level autonomous driving.

"Starting from the end of December, users will be able to turn on the M9's high-level autonomous driving functions when they are on urban roads and expressways across China," Yu said.

Huawei, he said, has already received 54,000 pre-orders for the Aito M9.

Donghai Securities said in a research note that autonomous driving technologies are entering a phase of rapid growth in China, as tech companies such as Huawei and auto startups such as Nio and Li Auto are bringing more advanced driving assistance systems to cars.

Cui Dongshu, secretary-general of the China Passenger Car Association, said there is enough room for the development of smart cars in the 5G era. Huawei can offer a slew of technological solutions and services covering both hardware and software.

Cui also said China's NEV sales in 2023 would reach the association's estimated figure of 8.5 million units, as many automakers, both startups and established companies, experience growing momentum.

Huawei's launch of its new model follows its splash in the NEV sector earlier this year. In November, more than 18,800 Aito vehicles were sold, up 127 percent year-on-year.

Last month, Huawei announced it would move its smart vehicle technologies and solutions into a joint venture with Chinese carmaker Changan, which would hold up to 40 percent stake in the new JV.

Huawei said the equity stakes in the new JV will also be open to its existing partners and others of potential strategic value. Huawei has been co-developing models with brands like BAIC, JAC and Chery.

Zhong Shi, an independent auto analyst, said Huawei has so far adopted two strategies to involve itself in the auto supply chain. One is for supply of parts and technologies to automakers, like its cooperation with Changan.

"The other is the intelligent car selection mode. Huawei not only participates in product modeling, interior design and intelligent solutions, but also is responsible for marketing and sales of cars. A typical example is its cooperation with Seres, which has proved to be highly successful," Zhong said.