JAC officially signed a contract with Huawei to cooperate in car manufacturing. What do you think of Huawei's car series?

For the current new energy vehicle market, Huawei is undoubtedly the hottest keyword in the market. Huawei's automotive BU has become the most popular player in the market. Just recently, JAC Motors also officially announced that it has signed a contract with Huawei to cooperate in car manufacturing. People can't help but wonder how to view Huawei's car series?

1. JAC officially signed a contract with Huawei to build cars?

According to the report of the "Daily Economic News", JAC Motors issued an announcement saying that it had signed a "Smart New Energy Vehicle Cooperation Agreement" with Huawei Terminal Co., Ltd., and JAC Motors is overall responsible for the product development of the cooperative models, and JAC Motors is responsible for building a production base to achieve the delivery of the cooperative models; JAC Motors agrees that Huawei Terminal or its designated third party will exclusively provide sales services for the cooperative models worldwide.

JAC Motors and Huawei signed a cooperation agreement on intelligent new energy vehicles, which is valid for 10 years. The announcement shows that JAC Motors is responsible for the overall product development of the cooperative models, and the specific division of labor is subject to the relevant agreements signed between Huawei Terminal and/or its affiliated companies and JAC Motors.

In terms of production and manufacturing, JAC Motors is responsible for building an advanced production base, giving full play to JAC Motors' advantages in the field of advanced manufacturing, relying on the industrial Internet and mature manufacturing management experience to provide users with comprehensive intelligent manufacturing solutions, and leveraging Huawei's terminal advantages in related fields to build advanced manufacturing capabilities, thereby achieving efficient delivery of cooperative models.

In terms of sales, given that Huawei Terminal has a global sales network, strong brand marketing and user operation capabilities, JAC Motors agrees that Huawei Terminal or its designated third party will exclusively provide sales services for cooperative models worldwide, including but not limited to marketing, sales, user and ecological operations. The export business for cooperative models can only be implemented after both parties reach an agreement.

Yu Chengdong, Huawei's executive director and chairman of the Intelligent Automotive Solutions BU, said that Huawei has issued equity opening invitations to SERES, Chery, JAC, and BAIC, and hopes that China FAW Group will join.

2. How should we view Huawei’s car series?

Recently, JAC Motors and Huawei signed a strategic cooperation agreement, which has attracted widespread attention. Huawei has previously signed cooperation agreements with many automakers. What does the signing of the agreement between JAC Motors and Huawei mean? How should we analyze this matter?

First of all, the signing of a contract between JAC Motors and Huawei to cooperate in car manufacturing is actually a process of both parties seeking new development opportunities and breakthroughs in the context of fierce competition in the current domestic and international automobile markets. In recent years, with the development of emerging technologies such as new energy vehicles and intelligent connected vehicles, the automotive industry is facing unprecedented changes. In this wave of change, traditional automobile companies need to seek new partners to achieve technological innovation and industrial upgrading. As a world-leading information and communication technology solution provider, Huawei's technical strength and market influence in 5G, cloud computing, artificial intelligence and other fields make it an ideal choice for JAC Motors to seek cooperation.

Secondly, Huawei positions itself as a platform company, which means that it does not directly participate in the manufacture of automobiles, but provides core technologies and services including intelligent driving systems, Internet of Vehicles solutions, and electronic and electrical architectures. This model allows Huawei to focus on its own technological advantages while avoiding high investment and complex management in the manufacturing process, and respond to market changes more flexibly. In this way, Huawei can cooperate with multiple car companies to achieve resource sharing, complementary advantages, and jointly promote the development of intelligent connected vehicle technology. This is also the core reason why Huawei Wenjie and Huawei Zhijie Automobile have become popular in recent years.

Huawei chose not to build cars itself, but to provide technical support and services behind the scenes, which is an innovation in the business model. This model enables Huawei to maximize its R&D advantages while maintaining flexibility. For car companies, this is also a win-win cooperation method, because they can use Huawei's technical strength to improve the competitiveness of their own products while retaining brand autonomy.

Third, in the long run, Huawei's cooperation model is also a challenge and innovation to the traditional automotive industry. Huawei does not directly produce cars, but builds itself into the "Intel" of the automotive industry through technology output. This model reduces its own risks while maximizing Huawei's interests. Through cooperation with many car companies, Huawei can gain wider market acceptance and brand exposure, and can also collect feedback and data from different partners to continuously optimize and iterate its products and services.

From an industry perspective, the rise of Huawei's car series may indeed become a trend. If Huawei's cooperation model proves to be effective, it will not only attract more traditional car companies to join, but may also attract more Internet companies and smartphone brands to enter the automotive industry. We have already seen the interest of technology giants such as Apple and Google in the automotive industry, and Huawei's success may become their role model, triggering a new wave of cross-border cooperation.

The cooperation between JAC and Huawei reflects an important development trend in the current automotive industry: the increasingly close cooperation between technology companies and traditional automakers, which is expected to accelerate the development of smart cars, which is undoubtedly what we should pay most attention to.

As a winner of Toutiao's Qingyun Plan and Baijiahao's Bai+ Plan, the 2019 Baidu Digital Author of the Year, the Baijiahao's Most Popular Author in the Technology Field, the 2019 Sogou Technology and Culture Author, and the 2021 Baijiahao Quarterly Influential Creator, he has won many awards, including the 2013 Sohu Best Industry Media Person, the 2015 China New Media Entrepreneurship Competition Beijing Third Place, the 2015 Guangmang Experience Award, the 2015 China New Media Entrepreneurship Competition Finals Third Place, and the 2018 Baidu Dynamic Annual Powerful Celebrity.