Yu Chengdong reiterated that Huawei does not make cars but aims to help build the most profitable car companies in China.

Huawei’s Executive Director and CEO of Terminal Business, as well as CEO of the Intelligent Automotive Solutions Business Unit, Richard Yu, recently reiterated in an exclusive interview with the media that Huawei has no plans to manufacture cars. Instead, Huawei will focus on creating the Huawei Smart Car by partnering with a select few car companies through the establishment of the Wanjie Ecological Car Alliance. By working together, they will provide the best experience possible, create product differentiation, and seize the window of opportunity presented by the transformation of the automotive industry. The car companies closely collaborating with Huawei will be the first to achieve profitability within one to two years and become one of the most profitable car companies in China.

Regarding recent misunderstandings about Huawei’s collaboration with CyrusOne, Richard Yu responded by saying that Huawei’s investment in CyrusOne has actually increased. He emphasized that CyrusOne, which has been working with Huawei for the longest time, has the most extensive accumulation of product models and will benefit the most under the Huawei Smart Car business model.

When discussing market competition, Richard Yu stated that Huawei primarily focuses on mid-to-high-end products and will not enter the market for cars priced below RMB 200,000. In the future, Richard Yu hopes that everyone can work together to expand the new energy vehicle market.

Furthermore, in order to achieve Huawei Car BU’s goal of profitability by 2025, Richard Yu stated that Huawei must first help car companies sell one million cars. “We hope both the Smart Selection and HI modes will achieve high volumes, with the Smart Selection mode possibly having the larger volume. No matter which mode succeeds, we will be successful.”

In Richard Yu’s opinion, the intelligent upgrading of various components in cars is the core of future competition between Chinese and American automotive brands. The next 2-3 years will be the window of opportunity for smart connected cars, and Huawei must seize this time to make the Huawei Smart Car a reality.

“As a lone person cannot win, we need several brothers to work together. That’s why we established the ecological alliance. I believe that the few car companies that work most closely with Huawei will be the few enterprises that can survive till the end.”

This article is a translation by ChatGPT of a Chinese report from 42HOW. If you have any questions about it, please email bd@42how.com.