Avatr Technology and Huawei: A Powerhouse Collaboration in Smart Electric Vehicles
Introduction to the Partnership
On February 26, 2025, significant news emerged from the Chinese automotive industry as Avatr Technology, a subsidiary of Changan Automobile, announced an expansive partnership with tech giant Huawei Technologies. This collaboration marks a critical juncture for Avatr, which is set to deepen its relationship with Huawei by integrating their engineering capabilities into the development of new electric vehicle models.
Advancements in Collaboration
According to Chen Zhuo, the president of Avatr, this partnership has upgraded its previous model, known as Huawei Inside, to Huawei Inside Plus. This new framework allows Huawei to engage more profoundly across various stages of vehicle development, rather than focusing solely on intelligent driving technologies and components.
Huawei’s Role Explained
Huawei has carved out three main strategies when partnering with automotive brands:
- Acting as a vertical parts supplier.
- Engaging as an intelligent systems supplier via Huawei Inside.
- Offering complete solutions through Huawei Smart Selection.
So far, the full-set solutions model has shown the most promise, while other approaches have struggled to gain traction in the marketplace.
A Holistic Approach to Development
This revamped partnership means that Huawei will now be integrally involved in the entire automotive development journey—covering everything from product definition and user research to marketing and product launches. An impressive team comprising about 300 Huawei employees has been tasked with this project, illuminating the seriousness of the collaboration.
Aiming to Compete with Tesla
Chen Zhuo confidently asserted that if there were to be a single intelligent driving system in China capable of rivaling Tesla’s solutions, it would undoubtedly be Huawei’s. This motivation is a key driving force behind Avatr and Huawei’s intensified cooperation.
Avatr’s Investment in Huawei
In a historic move last August, Avatr took the lead among automakers by investing in Huawei’s intelligent driving unit, Yinwang Technology, acquiring a 10% stake for approximately CNY 11.5 billion (USD 1.58 billion). This partnership was launched earlier in January 2024, signifying a substantial commitment to the future of automotive technology.
Tesla’s New Features
In a related note, Tesla’s Chinese unit recently announced upgrades to its autopilot feature, aiming to align closer with the Full Self-Driving suite available in the United States. This move indicates the competitive landscape that both Avatr and Huawei are stepping into.
Concerns About Independence Overruled
Chen Zhuo expressed confidence that this deeper collaboration with Huawei would not compromise Avatr’s operational independence. He believes the future of smart driving technologies will shift toward becoming more standardized and modular, thereby reducing any risks associated with deep partnerships.
The Launch of the 07 Pro + SUV
In line with these developments, Avatr has successfully launched the 07 Pro +, a sport utility vehicle equipped with innovative technologies. This model stands out as the company’s sole intelligent vehicle featuring three distinct smart driving technologies—triple laser, single laser, and main vision, all powered by Huawei.
Ambitious Sales Goals Set
Avatr has ambitious sales targets lined up, aiming to reach a monthly break-even point within this year and seeking to achieve annual profitability by next year. To support this goal, the company recognizes the need for accelerated growth in vehicle sales.
Past Sales Performance
In 2024, Avatr recorded a remarkable achievement, selling over 74,000 vehicles. However, the company has set its sights much higher for the current year, with plans to sell 220,000 vehicles, including a target of 15,000 overseas sales. This ambitious growth trajectory is fueled by the rollout of multiple new models.
Shareholding Dynamics
Avatr’s largest stakeholder is Changan Auto, holding a 41% stake, while significant backing also comes from Contemporary Amperex Technology, recognized as a giant in the power battery sector, holding 14.1%. This structure provides Avatr with both financial security and technological expertise.
China’s Electric Vehicle Landscape
The evolving electric vehicle market in China has seen a significant uptick in competition and innovation. With regional and global competitors seeking to establish their footholds, collaborations like Avatr and Huawei’s are paramount for success in this fast-paced environment.
Consumer Expectations
As this partnership unfolds, consumer expectations will play a pivotal role in determining its success. Vehicles that promise not only technological advancements but also safety, reliability, and user-friendliness will likely capture the attention of today’s discerning car buyers.
Future of Automotive Technology in China
The partnership between Avatr and Huawei could signal a transformative shift in the Chinese automotive landscape. As both companies aim to integrate cutting-edge technology with extensive research and development, the anticipated outcome could redefine how electric vehicles are perceived and implemented.
Conclusion: A New Dawn for Avatr and Huawei
In summary, the strengthening alliance between Avatr Technology and Huawei signifies a promising era for smart electric vehicles in China. With ambitious goals, substantial investments, and a focus on advanced technology, both companies are strategically positioned to redefine the automotive industry while competing on a global stage. The coming months will be crucial in determining how effectively they translate their collaborative innovations into market success.
