Not just Xiaomi: the deployment of phone brands to enter the automotive industry

Last December 28, while on this side of the world we were still joking about April Fool’s Day, news that seemed to be a lie spread throughout the world: Xiaomi, the Chinese brand known throughout the world for its smartphones, presented the SU7, its first vehicle. A 100% electric model which, at least in theory, is capable of matching the performance of the two most representative products in this industry: the Tesla Model S and the Porsche Taycan.

Although during its presentation the Chinese giant highlighted the technologies that it will use to aim to dominate the market, such as performance, autonomy and autonomous driving with greater capacity to resolve daily situations; He did not delve into concrete information about the development of the chassis and the factory where it will be manufactured.

And it’s one thing to develop the different software that allows the application of the car’s systems, but quite another thing is to build windows, doors, seats and assemble all that on a production line, ensuring the car functions properly in public. roads over their useful life.

All of us who experienced the transition from the 90s to the 2000s remember Samsung cars, but the truth is that today’s Renault Korea Motors, formerly Renault Samsung Motors, started operations as Samsung Motors (SMI) in 1995 as part of a holding company attempt. Korean to manufacture cars alone, with help from Nissan.

Although this company was hit by the Asian crisis of the late 1990s and Samsung had to sell almost its entire stake to Renault, his vision laid the groundwork for other technology companies to want to enter the automotive world.

Today, Samsung, already consolidated worldwide as a leader in technological development, has a branch dedicated to the creation of components applicable in automobiles, such as processors, radars and other elements that can be easily assembled during the development of a model to provide it with functions. Despite promotions related to its interior screens and autonomous driving, the truth is that it has shown no signs of wanting to build complete cars itself.

In 2016, a new coup by technology brands is one of the most anticipated, but which has not yet materialized. Steve Kenner, then director of product integrity at Apple and former global director of automotive safety at Ford, made it clear that Apple was very interested in conducting research into machine learning and automation. having potential for application in many areas, including transportation. Thus, since that year, rumors have been circulating that the Silicon Valley company is developing technologies applicable to other manufacturers, such as Samsung, and even with a view to launching a 100% clean car.

Apple’s so-called Project Titan has gone through different phases between unofficial confirmations, cancellations and changes in strategy, but they still haven’t confirmed anything.

In 2021, in the midst of a pandemic, it is the turn of the giant Huawei. The brand linked to mobile telephony was, until the presentation of the Xiaomi SU7, the one that came closest to driving your own car on public roads, even if this is quite ambiguous.

As in previous cases, the Chinese manufacturer, faced with a veto from the United States, has put a lot of effort into developing HiCar, its automotive ecosystem capable of combining on-board entertainment functions, synchronization with smart homes and advanced assistance systems to driving. The advantage of creating these modular systems is that they are not packaged for application in cars of a specific brand, but Huawei is free to partner with different manufacturers to present joint collaborations.

This has helped the company become a major automotive software provider in the global cradle of tech cars, with collaborations with manufacturers such as: Baic, under the ARCFOX brand; DFSK brand AITO; Changan, with the AVATR brand and the most recent collaboration with Chery, for the LUXEED brand, all cars already on sale in China. This, although it is a possibility of expanding the range and leaving its name on a wider offer, delegates the development of the engineering part to the car manufacturer, having to adapt the construction quality and performance to the standard of each brand, so An AITO may not have the same quality as a LUXEED and this is beyond the control of Huawei, which only provides the software and the name as support for the technological quality.

Sony has also taken steps to enter this field with the creation of Sony Mobility, a joint venture with Honda for the manufacturing of 100% electric cars, where Honda is in charge of general body development, while Sony collaborates with all the technology. applied to vehicle driving. Its first two models, the Vision-S 01 and Vision-S 02, were presented in 2023 at CES in Las Vegas, but the precise date on which these models will enter production has not yet been announced.

With the Xiaomi SU7, the path seems to be completely contrary to just being a supplier, but the company seems more interested in having full control of almost the entire supply and assembly chain of its new car , because as we can deduce from the little information that the Chinese manufacturer has provided, it has hired experienced engineers in the automotive industry to collaborate in the development of everything related to the chassis, engine and other technical elements of its upcoming SU7 vehicle, so it is presumed that if there is a collaboration with another experienced manufacturer – BYD was rumored to be involved – it is apparently more about consulting than outsourcing production.