BYD Teams Up with Huawei For Autonomous Driving Capabilities In Off-Road EVs

In a strategic move to enhance its position in the competitive electric vehicle (EV) market, BYD has announced a partnership with Huawei to integrate Huawei’s advanced autonomous driving system into BYD’s off-road EVs.

The centerpiece of this partnership is Huawei’s Qiankun Intelligent Driving ADS 3.0, which will be featured in BYD’s new “professional grade” Fang Cheng Bao brand. The first model to showcase this technology will be the Fang Cheng Bao 8, BYD’s hybrid off-road SUV, set to launch later in 2024 with an expected starting price of around 500,000 yuan ($70,200).

Huawei’s Qiankun ADS 3.0, introduced in April, arrives with features comparable to Tesla’s Full Self-Driving (FSD) system, including city Navigate on Autopilot (NOA). The system utilizes an end-to-end network architecture for a more human-like driving experience, promising enhanced safety and efficiency.

Closing the Tech Gap

This collaboration comes as BYD seeks to narrow the technological gap with Tesla and other emerging Chinese automakers. Despite dominating the Chinese EV market, BYD recognizes the growing demand for advanced features among buyers.

The partnership represents a significant shift in BYD’s stance on autonomous driving technology. In 2023, the company had argued that self-driving technology was “basically impossible” for buyer applications. However, in 2024, BYD announced a $14 billion investment in smart car technology including autonomous driving software and driver-assistance systems.

Expanding BYD’s Premium Offerings

BYD’s decision to incorporate Huawei’s technology aligns with its strategy to boost sales of its premium brands, including Denza, Fangcheng Bao, and Yangwang. These brands currently account for only 5% of BYD’s total sales in the first half of 2023, according to the China Association of Automobile Manufacturers as cited by Reuters.

By leveraging Huawei’s expertise, BYD aims to differentiate its high-end offerings and improve profitability. The move is part of BYD’s broader ambition to establish itself as a top global automaker, competing with established players like Hyundai Motor Company and Volkswagen, which contains multiple successful brands.

Huawei’s Influence in the EV Sector

Moreover, the partnership also highlights Huawei’s increasing presence in the EV industry as a major supplier of advanced driver-assistance systems (ADAS). Beyond BYD, Huawei has secured a deal with Volkswagen’s Audi to provide ADAS technology for its EVs in the Chinese market.

With this strategic alliance, BYD is positioning itself to compete more effectively in the premium EV segment, both in China and globally. As a result, collaborations like the one between BYD and Huawei are likely to become more common as the presence of EVs continue to grow on roads. 

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