(Yicai Global) Dec. 25 -- Guangzhou Automobile Group’s AION V, the world’s first smart electric vehicle hooked up with Chinese tech giant Huawei Technologies’ fifth generation semiconductors, has started to roll off the production line but only 200 units can be made until more chips arrive, the new energy vehicle arm of the Chinese carmaker said yesterday.

Powered by the latest version of Huawei’s self-developed Baron 5000 5G semiconductors, the new car will soon hit the market, GAC AION New Energy Vehicle said. However, there is a catch as the Shenzhen-based chip maker only has 200 chips in stock.

The shortage of semiconductors, largely due to US trade sanctions that have crippled China’s chip supply chain, may become the biggest obstacle to mass production of such vehicles, Deputy General Manager Xiao Yong said. Huawei has sold its entire stock of Baron 5G chips to GAC AION. The lack of supply will also affect other Chinese carmaker’s deliveries of 5G-connected cars, he said.

Huawei has strengths in both hardware and software and will be a strong contender in the electric car sector, Xiao said. Just like US tech giants Google and Apple’s Android and iOS systems dominate the smartphone industry, Huawei could become a major player in operating systems for smart cars, he said.

5G-connected cars are expected to account for 40 percent of the country’s auto sales by 2025, amounting to 7.1 million units, according to Hong Kong-based Counterpoint Research.

Guangzhou-based GAC AION sold 53,000 NEVs in the first 11 months of the year, a year-on-year leap of 62 percent. The emerging smart vehicle sector has allowed newcomers like GAC AION, which was only set up in 2017, to get a head start on and even overtake traditional automotive manufacturing giants, Xiao said.

Editors: Tang Shihua, Kim Taylor