Huawei is set to significantly boost its investment in smart driving research and development, pledging over $10 billion over the next five years to enhance computing power for training, as announced by a senior executive.
This year alone, the Chinese technology giant will allocate 18 billion yuan (approximately $2.6 billion) globally for smart driving R&D, with 10 billion yuan specifically earmarked for computing power improvements. Jin Yuzhi, Huawei's senior vice president, made this announcement at an event in Beijing ahead of China's largest auto show.
Strengthening Market Position
Over the past four years, Huawei has established itself as a crucial supplier in China's smart electric vehicle (EV) sector. This growth is largely driven by technologies that are increasingly preferred by affluent Chinese consumers over traditional German-engineered options.
Showcasing Innovations
During the event, Huawei showcased 38 vehicle models featuring its smart driving and intelligent cockpit technologies. Among these were four models from Audi and Toyota's BZ7, developed in collaboration with Guangzhou Automobile.
Additionally, Huawei introduced its Qiankun ADS advanced driver-assistance system, which will debut in the flagship X9 six-seater SUV, co-developed with Dongfeng Motor.
Collaborations with Automakers
Chinese automakers are increasingly partnering with Huawei to boost car sales and optimize factory utilization. This trend follows Huawei's success in revitalizing the Seres brand through the launch of the Aito brand in 2021.
Market Impact
Aito has outperformed established German automakers like BMW, Mercedes-Benz, and Audi in the market for all fuel-type vehicles priced above 500,000 yuan ($72,500) during 2024 and 2025, according to data from Shanghai-based research firm ThinkerCar.
Yale Zhang, managing director of consultancy Automotive Foresight, noted that more Chinese car owners are opting for domestic brands such as Aito, Zeekr, and Li Auto, which are now being sold at even higher prices, challenging the perception that they only cater to budget-conscious consumers.
Growth in Automotive Revenue
While automotive sales represent a smaller portion of Huawei's overall portfolio—which includes telecommunications, smartphones, and cloud computing—this segment is the fastest-growing. Revenue from automotive-related activities surged by 72% in 2025, reaching 45 billion yuan ($6.5 billion) and contributing to an overall revenue increase of 2.2% to 880.9 billion yuan.
