Chinese tech giant Huawei aims to fortify its presence in the electric vehicle (EV) and smart car software industries by seeking partnerships with renowned car manufacturers such as Audi and Mercedes.
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Reports reveal that Huawei recently engaged in confidential discussions with the two leading German automakers to explore potential joint ventures or partnerships.
Potential Business Spin-off
Speculations in international media, citing insider sources, suggest that Huawei is contemplating the idea of separating its Intelligent Automotive Solution (IAS) business unit.
Commitment to EV Software
This contemplated move underscores Huawei’s dedication to establishing a significant role in providing software and components for smart EVs. The IAS business unit is estimated to hold a value ranging between $28 billion and $35 billion.
Stake Acquisition Interest
Mercedes has reportedly expressed interest in acquiring a 3% to 5% stake in Huawei’s smart car software and components firm. However, Audi’s stance on Huawei’s proposal remains undisclosed.
Potential Collaboration for Autonomous Driving
Rumors suggest that Audi and Huawei might collaborate to develop autonomous driving technologies for Audi vehicles in the Chinese market by 2025.
Official Statements Pending
Despite media speculations, none of the involved companies—Huawei, Audi, or Mercedes—have provided official comments regarding the speculated collaboration.