Audi and Huawei Partner to Integrate Smart Driving Solutions in Final Generation of Combustion Engine Vehicles

According to Yiou Auto, a Chinese media outlet, Audi’s final generation of combustion engine vehicles will feature Huawei’s smart driving solutions. The Audi A5 is set to be the first model to launch with this technology. It’s expected to debut at the Guangzhou Auto Show later this year, and it might hit the market during the Shanghai Auto Show in 2025.

The partnership between Audi and Huawei isn’t limited to the A5 model. They’re also collaborating on the Audi Q6 e-tron, the brand’s first electric vehicle built on the PPE platform, which will also incorporate Huawei’s smart driving system. However, it’s currently unclear which of these cooperative models will be the first to launch.

The Audi Q6 e-tron has faced some hurdles in its development, encountering two delays due to software and platform issues. The completion of the Audi FAW New Energy factory, where the model is being produced, is anticipated by the end of 2024. The Audi Q6 e-tron was first revealed in March of this year and was officially displayed at the Beijing Auto Show.

Insider sources have indicated that SAIC Audi will also be producing the Audi A5, but it will be a different model from the one produced by FAW Audi. It’s likely to be the Audi A5 Sportback. The collaboration between Audi and SAIC Group is set to utilize Momenta’s smart driving solutions.

The Audi A5 is essentially an upgrade from the Audi A4 and is among Audi’s top sellers in China. Audi has revised its product naming conventions this year: even numbers now signify electric models, while odd numbers represent combustion engine models.

The Audi A5 is the inaugural product based on Audi’s next-generation combustion engine platform, the PPC (Premium Platform Combustion). It uses a new electronic and electrical architecture developed in collaboration with CARIAD. The integration of several cutting-edge technologies underscores Audi’s intention to maintain the Audi A4 series’ sales success over the past three decades.

An industry analyst told Jiemian News, a Chinese media outlet, that Audi’s decision to partner with Huawei in China could potentially boost sales. It also signals a recognition of the importance of Chinese consumer preferences. Importantly, this localization strategy won’t impact Audi’s global market positioning.

To address their shortcomings in the area of smart technologies and to speed up R&D, multinational car companies are increasingly partnering with domestic tech firms. The analyst suggested that as China becomes a hub for smart and electric vehicle technologies, international companies should actively engage to enhance their capabilities.

Jin Yuzhi, CEO of Huawei’s Intelligent Automotive Solution BU, revealed that by year-end, ten models from seven car companies will feature Huawei’s Qiankun smart driving system. By the close of 2024, the number of vehicles equipped with Huawei’s smart driving system is projected to surpass 500,000.

Huawei has publicly announced collaborations with several brands, including the “Four Realms” brand under the HarmonyOS smart travel mode, Dongfeng Lantu and Mingshi, Changan Deep Blue and Avita, and GAC Trumpchi. Financial media outlet LatePost also reported that some models from BYD’s Equation Leopard brand will use Huawei’s smart driving solution, marking the first collaboration between these two major players.

In March, Huawei’s car BU Chairman, Yu Chengdong, disclosed that the business unit is nearing the breakeven point and is expected to become profitable starting from April.

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