As Xiaomi, DJI, Mavericks and others all say they want to build cars, the car-making circle seems to be getting more and more crowded, but Huawei has been going against it.
This time, Wang Jun, President of Huawei Smart Car Solutions BU, once again emphasized that Huawei does not build cars, and it is not Huawei who builds cars.
In addition to the previous Xu Zhijun, Ren Zhengfei, Yu Chengdong, etc., Huawei already has multiple executives. On different occasions, it has been reiterated many times that Huawei does not build cars, and Huawei really does not build cars.
When a number of well-known companies were engaged in building cars, Huawei has been paying attention to and entering the automotive field since 2012. Why has it decided not to build cars after so many years? What makes Huawei so emboldened?
Making a car
The first electric car made in China is Jia Yueting from LeTV, but Jia Yueting is definitely the first wave of carmakers. It is estimated that he is the first group of players from all over the world. Of course, Tesla's Musk was the most successful one among the first players, and Jia Yueting was the worst one.
The success of Musk and Tesla has its own characteristics, and of course it is also the success of Tesla that has allowed the majority of entrepreneurs and entrepreneurs, as well as capital, to flock to the car-making market. But Tesla's success does not mean that everyone can succeed. Looking at the failure cases, it may be more likely to make people alert and avoid making the same mistakes. Although Jia Yueting did not fail to build a car, the twists and turns are even more sobering.
In 2014, Jia Yueting officially started his Internet car-building plan. His goal is to make China's automobile industry stand at the forefront of the world's automobile industry for the first time through LeEco's efforts, and even strive to make LeEco a once-in-a-century experience A leader in the transformation of the automotive industry; according to the plan, the first mass-produced model will come out in 2017.
In September 2016, LeTV Automobile completed a series A financing of over US$1.08 billion. Two months later, LeEco’s ecological strategy came to a sudden stop due to the funding crisis.At that time, Jia Yueting said that LeTV had burned more than 15 billion yuan to build cars.
At CES 2017, Jia Yueting brought FF's first mass-produced model FF91 to its debut, and publicly stated that it would cost 10 billion yuan to guarantee production.
In December 2017, FF received $2 billion in financing from Evergrande, but Evergrande’s investment is conditional, that is, if mass production cannot be achieved in 2019, Jia Yueting will lose control of FF, but in the end, both parties In court; Jia Yueting, who was in financial difficulties, sold FF's US factory and part of the land.
For more than five years, Jia Yueting burned out nearly US$3 billion, but still has not achieved mass production.
Let's take a look at how much money several new domestic forces have spent to build cars.
Take Weilai Automobile, Ideal Automobile, and Xiaopeng Automobile, which are currently the first echelon of new domestic car-making forces, as examples. As of 2020, according to public financing information and financial reports, Weilai Automobile’s total financing is 83.5 billion yuan, cash The reserve is 42.5 billion yuan; the total financing of Ideal Automobile is 36.2 billion yuan and the cash reserve is 29.87 billion yuan; the total financing of Xiaopeng Auto is 45.8 billion yuan and the cash reserve is 35.34 billion yuan. In 2020, the gross profit margins of the three companies will collectively become positive. If you simply count, the three companies have spent 41 billion yuan, 6.33 billion yuan and 10.46 billion yuan respectively since their establishment.
Of course, as the first echelon of new car-building forces, and the first batch of crab-eating Jia Yueting, the capital market and consumer market are still in the early stages of development, and the investment and competitiveness are relatively low. It is not very strong. Now, with many big players entering the market, 10 billion is definitely not enough to spend, such as Evergrande, Baidu, Ali, Xiaomi, etc., which one is not the rich owner?
Why doesn't Huawei build cars?
According to Xu Zhijun, Vice Chairman and Rotating Chairman of Huawei,Huawei has been investigating and considering car building since 2012, but until 2021, it also made it clear that Huawei will not build cars.
Why does Huawei insist on this view?
technology, Huawei’s technology is the biggest strength not to build a car.
Geely Li Shufu said that the car is very simple, just four wheels plus a sofa. In fact, tens of billions are not a big investment for Huawei.
On the morning of April 18, at the media communication meeting after Huawei’s smart car solution BU new product launch, Wang Jun said that Huawei will continue to increase investment in the automotive industry. The investment will reach 1 billion U.S. dollars, and the R&D team will exceed 5,000 people, of which the autonomous driving team will exceed 2,000. The annual investment of 1 billion U.S. dollars, there are also several billion yuan, so it is definitely not a matter of money for Huawei to say not to build a car.
Then only the strategy and technical layout are left.
In fact, in the field of technology and products, there have always been two directions, such as Qualcomm and all mobile phone manufacturers in the mobile phone field; Google and all mobile phone manufacturers in the system field; of course, there is one exception, that is, Apple's hardware plus software.
The intelligentization of cars is likely to exist in the business model of hardware plus software, just like the original mobile phone intelligence.
hardware as a superficial thing, while software can be a deeper existence. The functions of the software and the underlying technical logic are more in line with Huawei's pursuit of technology, just like the current mobile phone system Hongmeng.
Since we want to do something deeper, we must avoid competing with car manufacturers on the surface, but also to avoid competing with customers.
Therefore, Qualcomm and Google, which are similar to the mobile phone field, are Huawei's positioning in the automotive field.
Huawei does not build cars,It is not conceited or short-sighted, but Huawei's investment and accumulation in automotive technology research and development over the years, as well as the results achieved, may be Huawei's true confidence.
(The picture is from the Internet, infringement must be deleted)
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