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BBA collectively "invests in China," what's the rush?
Bohu Finance 2025-03-25 10:14:05

Following BMW's introduction of Huawei HiCar technology after Audi and Mercedes-Benz, BMW's "Huawei Moment" is here!

BMW China has announced a partnership with Huawei Terminal to develop smart services based on the HarmonyOS ecosystem, including digital keys and HiCar interconnection. Integrating the HarmonyOS vehicle system with BMW cars will allow you to remotely control your BMW using a Huawei phone in the future.

As expected, the ultimate destination for car manufacturers is Huawei, even for German luxury brands.

Let's set aside the technical level of this collaboration, the once prestigious BMW is now willing to lower itself to partner with Huawei - what drug is being sold in this gourd?

The reason is actually quite simple. BMW's days in the Chinese market are getting tougher and tougher.

BMW has in the year of 2024 in Chinese market to sell as the result same rate downward. Its whole lineup whole brand turnover ratio dropped same percent downward as much 13.4. While at BMW Body Buiseach had drop big with its major sales point M car segment also fall in ratio percent dropped major also most also downward down much with ratio same percentage major, basically for that a very important sign indicates some bigger whole strategy is on for many more many other reason other product model but only specific the key strategy change over one many model other some as all others just different same brand many one not over only most change that BMW do all because not sell only brand other the biggest that very different other change same same and then reason others in for.

Why is it like this?On the one hand, local new energy brands are making strong advances, putting great pressure on BMW; on the other hand, BMW is lagging behind in terms of intelligenceization."Ix3 Electric Bus" is criticized for being an "electric bus" without any smart configuration.

Young people are now more concerned with the "smartphone" and "car technology" than brand reputation, with the percentage of people in 2019 down to 47%, and down to 19% in 2023.Intelligentization is the new "Three Great Components" of cars The mechanical qualities that BMWs were once proud of have become outdated "antiques" and are no longer appealing.

The reason BMW was targeting Huawei users is because BMW discovered that 1/4 of Chinese car owners were using Huawei phones.Collaborating with Huawei can not only reach these Huawei users but also leverage the HarmonyOS ecosystem to enhance user experience, potentially boosting Huawei's popularity and attracting more consumers to buy BMW, reaping some "sentimental benefit."Add China's soaring consumer sentiment towards intelligent cockpit and become Huawei like car industrial park "spoon". The luxury sedan's inability to stir its customers will certainly catch people's eyes, like "blessings from above".

This is actually more inseparable from Huawei's own strong brand appeal. Look, even though it says it doesn't manufacture cars, it is the No.1 influencer in the automotive industry!SR MotorFormerly very slow, now incredibly fast, after boarding the Huawei "high-speed train" suddenly became invincible, and sitting comfortably on the Chinese 50 million+ sold car model crown jewel became an eagle soaring high in the sky.

So, For BMW, collaborating with Huawei could be a good choice to save its sales.

The BBA know this. Not just BMW, but Mercedes-Benz and Audi are also struggling. In 2024, Audi and Mercedes-Benz sales in China fell by 10.9% and 7% respectively.

and middle translate the above content into English directly as follows: and middleState Grid New Energy The market penetration is continuously expanding. Although they are also launching electric flagships like the Mercedes EQS, BMW i4, and Audi e-tron, compared to Chinese independent brands, it's like Nokia trying to compete with the iPhone—it's an awkward comparison.

Although Germany is a老牌工业强国, it falls short in terms of talent reserves and industrial foundations in the fields of the internet, software, and artificial intelligence compared to China. Their own solutions are indeed unreliable. Just look at Volkswagen's CARIAD; they invested 168 billion yuan to develop an operating system and electrical architecture. Not only did they fail to deliver, but they also affected Porsche and Audi's electric vehicle businesses, ultimately resulting in a loss of 189 billion yuan. They had to cut their workforce by 30% to stem the losses.

"本土化定制车型"(Domestic Customization Car Model)是指将中国技术应用于汽车制造,特别是将中国的新技术和设计元素应用于汽车的车型。Rather than selling one's soul, it's the fastest way to stay true to brand premium while keeping up with China's automotive smartification.It is cooperation, and in China's rapidly advancing technology industry, BBA's better understand that in the current market of electric cars, "respecting technology" is more important than "respecting the market".

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