In an era where the automotive landscape is increasingly defined by technological innovation, the collaboration between BYD and Huawei exemplifies a strategic shift aimed at enhancing competitiveness within the rapidly evolving electric vehicle (EV) marketThis partnership echoes a broader trend among manufacturers to leverage advanced technology for creating smarter and more efficient vehicles that meet the demands of today's consumersThe integration of Huawei’s intelligent technologies has not only elevated BYD's market presence but also set a benchmark for the entire industry concerning technological integration in electric vehicles.

On November 12, BYD unveiled its latest production model, the Leopard 8, under its "Fangchengbao" brand, with prices ranging from 379,800 to 407,800 CNY (approximately $53,000 to $57,000 USD). This vehicle showcases the first collaboration between BYD and Huawei in the realm of smart off-road vehicles, positioning itself as a premium offering within the marketFangchengbao's general manager, Xiong Tianbo, heralded the Leopard 8 as a catalyst for a new lifestyle and a transformation in the realm of intelligent off-road driving globally.

Significantly, the Leopard 8 commands a premium of around 140,000 CNY compared to its predecessor, the Leopard 5. This price elevation can be largely attributed to the advanced smart driving technologies sourced from HuaweiEvery Leopard 8 is equipped with the Huawei ADS 3.0 advanced smart driving system, which features three laser radars designed to enhance both safety and the level of intelligence in drivingFurthermore, BYD has ambitious plans to roll out updates via over-the-air (OTA) technology that would introduce urban intelligent navigation assistance capabilities in the first quarter of the following year.

The collaboration between the two giants has been in the works since at least August 27, as BYD publicly announced their joint efforts to develop new productsAccording to Li Yunfei, the general manager of BYD's brand and public relations department, the engagement between the two has been long-standing, indicating that the synergy in smart technology has been developing for quite some time before this public announcement.

Typically, BYD has favored vertical integration, often refraining from highlighting its suppliers in promotional contexts

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However, in this case, Huawei emerged as a focal point of the partnershipDespite the contributions from other notable smart driving startups like Horizon Robotics and Momenta, BYD’s frequent references to Huawei—including naming the launch event "Fanghua," which fuses "Fangchengbao" and "Huawei"—underscore Huawei's pivotal role in BYD's strategy.

The Leopard 8 represents the world's first hard-core off-road vehicle incorporating Huawei's advanced driving technologyIt employs the Huawei QianKun Intelligent Driving ADS 3.0 system, granting users a comprehensive and efficient smart driving experienceThis system is capable of "valet-to-valet" navigation, adeptly handling complex driving scenarios, including gate entrances, roundabouts, and narrow road turnsAdditionally, it supports advanced parking functions like remote parking, enhancing convenience and safety for daily travel.

The advanced crash avoidance features introduced with the QianKun ADS 3.0 system enable the Leopard 8 to navigate various driving environments while preventing collisionsThis represents a significant leap in the usability of autonomous features, prompting users to focus more on their journeys with greater peace of mind.

In the cockpit, the Leopard 8 comes equipped with a proprietary AI cockpit system, leveraging BYD's advanced 4nm-process BYD 9000 chipThis setup enhances smart interaction capabilities, including intelligent voice commands and image processingWith the integration of HUAWEI HiCar technology, users can seamlessly connect their mobile devices with the vehicle, creating a cohesive digital experience that extends into their everyday lives.

Furthermore, in terms of performance, the Leopard 8 is outfitted with BYD's advanced hydraulic suspension system, known as the YunNiao-PThis intelligent suspension system, a first of its kind globally, shares similar configurations with BYD's million-level high-end modelsIts blend of mechanical, hydraulic, and electronic control technologies equips it with adjustable suspension travel, stiffness settings, and active damping adjustments, which collectively enhance the vehicle's stability and comfort during off-road driving.

The deep collaboration between BYD and Huawei has not gone unnoticed by market analysts

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Recent research from Shenyin Wanguo Securities projects that BYD's "intelligent equality" strategy could become a crucial theme in the automotive sector next yearThe plan to offer mid-to-high-end intelligent configurations as standard on models priced above 100,000 CNY will likely influence consumer choices and encourage other manufacturers to follow suit, thereby pushing the industry towards greater technological sophistication.

Meanwhile, Citic Securities anticipates that favorable macroeconomic policies will gradually revive consumer demand in the automotive sector, especially with localized subsidy programs taking effectThe auto industry stands to benefit from a renewed growth cycle as consumer upgrades and trade-in subsidies become more prominentWith the Guangzhou International Auto Show approaching, the performance of Huawei's intelligent technologies and robotic vehicles is poised to attract significant attention.

Moreover, as intelligent technology becomes increasingly valued by consumers, BYD is accelerating its foray into the smart driving sector, even as it seeks to independently develop high-level autonomous driving technologyTo address market demands swiftly, BYD is partnering with established suppliers to integrate smart features into its off-road vehiclesIn a competitive landscape that includes brands like Great Wall Motors’ Tank division, which has adopted advanced driving solutions from Mobileye, speed to market is critical.

The rapid deployment of Huawei technology within BYD's offerings is noteworthyAccording to Yang Dongsheng, head of BYD's new technology research institute, the partnership has produced results within just six months of initial collaboration, showcasing the capacity for swift innovation in the automotive sectorBYD’s chairman, Wang Chuanfu, has emphasized that the core competitiveness of luxury brands hinges on technological advances as opposed to merely their branding prowessThe launch of the Leopard 8 epitomizes BYD's strategic commitment to merge cutting-edge technologies, penetrate high-end markets, and seek new growth avenues.

Oriental Securities has indicated that the substantial integration of Huawei's ADS 3.0 in the Leopard 8 is likely to bolster BYD's brand reputation and improve sales performance, elucidating the importance of this partnership

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In terms of BYD's market aspirations, Ping An Securities has pointed out that, while Tengshi has achieved some enhancements in product capability through diverse technologies, it still lacks certain competitive edges compared to primary brands in the 300,000 CNY and above segment, such as Li Auto and WulingRecent sales data reflects this disparity, with the Leopard 8 moving 6,026 units, versus Tengshi's 10,781 units and 282 for Yangwang models.

Huawei's technology has evidently gained acceptance among consumers, as demonstrated by a surge in sales of vehicles equipped with its intelligent systemsNotably, the AITO Wenjue M7, released last September with the standard Huawei ADS 2.0 system, quickly surpassed 10,000 units in salesIn October of this year, the Lantu Dreamer—integrated with Huawei's latest driving system and HarmonyOS features—achieved sales of 7,808 units, exceeding the Tengshi D9.

Through this collaboration with Huawei, Fangchengbao's strategy to penetrate the premium market is acceleratingXiong Tianbo has disclosed plans to launch new models quarterly starting in Q4 of this year, targeting various segments, including off-road vehicles and sports carsIn line with enhancing market penetration, BYD's premium brand is shifting its sales strategy from a solely direct-sales model to a combination with dealership approachesThis transition aims to reduce capital expenditures related to store setups and to expedite the establishment of sales outlets in major urban areasSince opening franchise opportunities, Fangchengbao has added 115 new stores nationwide, bringing the total to 400 and reaching approximately 40% of the urban market.

Analysts from Shen Gang Securities affirm that BYD commands several critical technologies, including blade batteries, the fifth-generation DM technology, e-platform 3.0, CTB technology, and intelligent driving systemsAs high-end models are gradually released and sales trajectory improves, BYD is poised for a notable upturn in overall performance, reflecting a simultaneous surge in both volume and pricing.

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