The new arrangement expands Huawei’s role in Avatr’s product development, marketing, and ecosystem services.

On December 12, Avatr and Huawei signed an agreement for deep collaboration spanning product development, marketing, and ecosystem services, focusing on Avatr’s next generation of products. This marks a continuation of Huawei’s growing partnerships in the automotive sector, following its agreement with GAC on November 30.

Huawei’s approach to the automotive sector began with Ren Zhengfei’s principle that Huawei does not manufacture cars but instead supports automakers with its technology. Accordingly, Huawei developed three collaboration models:

1. Components model: Huawei operates as a traditional supplier, providing parts to automakers.
2. Smart selection model: Huawei participates in product definition, design, marketing, and user experience. Huawei has yielded partnerships with brands such as Aito (Seres), Stelato (BAIC), Luxeed (Chery), and Maextro (JAC) using this model.
3. HI model: This middle-ground model allows usage of Huawei’s technology, including smart driving, intelligent cockpits, and electric drive systems, while automakers retain control over product definition, marketing, and manufacturing.

Avatr has collaborated with Huawei under the HI model since 2022, launching four models: Avatr 11, 12, 07, and the upcoming 06. These vehicles incorporate Huawei’s technologies for smart driving, connectivity, and electric systems, while Avatr oversees product definition and manufacturing.

Video previewing the upcoming launch of the Avatr 06, an electric vehicle developed in partnership with Chang’an Automobile, CATL, and Huawei. Video and header photo source: Avatr.

The new agreement between Avatr and Huawei represents an upgrade to their collaboration, with Huawei extending its involvement into marketing and ecosystem services. This shift signals the adoption of the HI Plus model, which broadens Huawei’s role without integrating its terminal retail channels, unlike the smart selection model.

Huawei’s retail success under the smart selection model is evident. Harmony Intelligent Mobility Alliance (HIMA) brands sold 395,000 vehicles in the first 11 months of 2024, with the Aito M7 leading new energy vehicle (NEV) sales at 185,600 units and the Aito M9 dominating the high-end segment with 141,100 units sold. These achievements highlight Huawei’s expertise in product definition, marketing, and ecosystem management, prompting deeper partnerships with automakers.

Avatr’s sales under the HI model have also shown steady growth. Monthly sales climbed from under 2,000 units early in the year to over 10,000 units in November, boosted by the Avatr 12 and 07 launches. The introduction of the HI Plus model is expected to amplify this growth trajectory, leveraging Huawei’s expanded support for Avatr’s upcoming models.

Under the enhanced partnership, Avatr will adopt Huawei’s new architecture and draw on its expertise across development, marketing, and ecosystem services. This collaboration is poised to sharpen Avatr’s edge in the increasingly crowded automotive market, bolstering both sales performance and brand growth.

#SmartMobility #ElectricVehicles #HuaweiInnovation #AvatrCollaboration #FutureAutomotive