(Yicai) Sept. 27 -- GAC Group must strengthen its collaboration with Chinese tech giant Huawei Technologies as more vehicles are being equipped with autonomous driving solutions and this is likely to become the norm soon, the general manager of the Chinese automobile manufacturer said yesterday.

GAC needs to allocate its limited funds to core technologies that truly give it a competitive edge, Feng Xingya said at the 2024 Fortune Global 500 Summit yesterday. In addition to in-house development, it can also achieve this by outsourcing through third parties. As long as the systems are cost-effective, there should be potential for collaboration.

GAC and Huawei have a strategic and comprehensive co-operation that includes linking arms on their co-developed Trumpchi series, which released its first vehicle earlier this year, as well as on intelligent cockpits and autonomous driving systems, Feng said.

If a technology can be universally supplied, it should not be considered a core technology for car manufacturers, Feng said.

"A few years ago, intelligent connectivity and smart technologies were crucial to the competitiveness of finished vehicles, and it was not an exaggeration to call them core technologies for companies,” Feng said. “However, today, some of these technologies, such as autonomous driving technology, can be obtained through third-party procurement. This is a significant change."

Huawei has adopted a strategy where it does not manufacture cars itself but provides smart technologies to car manufacturers, thereby enabling it to participate in the smart electric vehicle market. Guangzhou-based GAC is one such partner and this year the two parties released their first mass-produced car, the Trumpchi M8 Master Edition, as well as their first collaborative concept auto, the "1 Concept."

Selling Their Soul

But tie-ups between car manufacturers and Shenzhen-based Huawei have sparked widespread controversy over whether this constitutes "selling their soul."

Former Chairman of SAIC Motor Chen Hong once said, "It is difficult for SAIC to allow a single supplier to provide an overall solution for us. This would result in a situation where 'they are the soul, and we are just the body.' Our soul must be in our own hands, so we will not accept overall solutions provided by any one supplier. At most, we will collaborate with them."

However, in the face of strong competition from new automotive startups with advanced intelligent technologies, incorporating Huawei technology to accelerate smart functions has become a choice for many conventional car manufacturers. This year alone, around 10 intelligent car models equipped with Huawei solutions, including those from GAC, have already been or are about to be launched.

Editors: Tang Shihua, Kim Taylor