On December 12, Avatr and Huawei signed an upgraded strategic cooperation agreement, focusing on deepening their collaboration in product development, marketing, and ecological services to enhance the next generation of Avatr’s products. This move follows the similar cooperation model Huawei established with GAC on November 30 and represents a new approach for Huawei in its automotive sector partnerships.
Huawei, initially focused on offering ICT technologies to car companies without building cars itself, has developed three cooperation models: the parts model, the HI model, and the smart selection model. In the parts model, Huawei acts as a traditional supplier of components to carmakers. The smart selection model, seen in collaborations with brands like Seres, is a more integrated approach where Huawei collaborates on product definition, design, marketing, and user experience. The HI model, which Avatr had been following since 2022, involves Huawei providing automotive technology solutions such as smart driving, smart cockpit, and electric drive technologies, while the car companies handle product design, manufacturing, and marketing.
The new cooperation model between Huawei and Avatr is an upgrade to the HI model, termed HI plus or quasi-smart selection. Unlike the smart selection model, HI plus does not involve Huawei’s direct sales through its terminal channels. The new agreement will broaden Huawei’s involvement, with Huawei contributing significantly to product development, marketing, and ecological services. This upgraded cooperation aims to improve Avatr’s competitiveness in the market, supported by Huawei’s deep expertise in smart technologies.
Huawei’s car business unit has already seen success with its smart selection model through brands like M7 and M9, achieving impressive sales figures. In November 2024, the sales of Huawei-powered models reached 395,000 units, with M7 leading in the new power model category and M9 excelling in the high-end market. These results demonstrate Huawei’s strength in product definition, marketing, and ecological services, which have led to more in-depth partnerships with other carmakers, including Avatr.
Under the original HI model, Avatr’s monthly sales showed significant growth, surpassing 10,000 units in November 2024, up from fewer than 2,000 at the beginning of the year. With the new HI plus model, Avatr’s sales are expected to rise further, backed by Huawei’s expanded support.
The strategic cooperation focuses on creating new models based on a new architecture, with Huawei playing a pivotal role in the development of intelligent vehicle features, marketing, and ecological services. Huawei’s input is expected to contribute to both Avatr’s sales and brand recognition in an increasingly competitive market.
The collaboration between Avatr and Huawei highlights the shift in the automotive industry toward software-defined cars, where car manufacturers and technology providers share the risks and rewards of enhancing the user experience throughout the vehicle’s lifecycle. This new cooperation model reflects the evolving landscape of the automotive industry, where partnerships between car companies and tech providers are becoming more integral to the creation of intelligent vehicles.
Source: Huawei, Avatar, huaweicentral
