Chinese companies have finally breached one of the last bastions of combustion-engine dominance.
Yesterday, an automotive blogger leaked news that one of the big three Japanese automakers would adopt Huawei's smart driving technology. Today, the news hits the ground running—it's Toyota.
According to Tencent Automotive, Toyota will employ a tripartite cooperation model of "Toyota+Huawei+Momenta" for its smart driving solutions across its global lineup.
A few years ago, the Chinese auto market was carved up by foreign brands from Japan, Germany, and the U.S. Now, with the dawn of the new energy era, the tables have turned, allowing even critical technologies to be exported from China. Besides Huawei, Toyota has also joined forces with BYD to co-develop electric vehicles.
Toyota has always been perceived as resistant to electrification. However, as the world's leading traditional automaker, it's clear Toyota won't miss any opportunity to maintain its pole position by embracing change.
As Chinese new energy vehicle companies aggressively roll out smart driving solutions, Toyota could no longer sit idly by.
A tricky triangle?
This collaboration highlights two key points: it's for global models and involves a three-party cooperation.
In essence, the partnership between Toyota and Huawei is not limited to models for the Chinese market but is aimed globally. This might be a phased approach, starting with trials in the Chinese market before expanding worldwide.
The cooperation involves Toyota, Huawei, and Momenta—a first of its kind in the automotive circle. Unlike Huawei's existing ADS advanced driver-assistance systems, Momenta and Huawei will provide software and hardware solutions, respectively, with all three parties working closely together and integrating their efforts.
As is widely known, Huawei has been navigating the automotive sector with a three-pronged approach, comprising component supply, the Huawei Inside (HI) model, and the Smart Selection of Cars strategy.
The Smart Selection of Cars business, now rebranded as HarmonyOS Smart Mobility, led by Yu Chengdong, has verged on "practically manufacturing cars." Under Yu's stewardship, Huawei transcends the role of a mere supplier, positioning itself more as the "big boss," with car manufacturers playing the part of contract factories.
In contrast, the HI model sees Huawei as a provider of a full-stack solution, offering technology and some hardware components. In this model, car manufacturers retain significant influence over the development of new models. Additionally, the primary responsibility for selling these new models remains with the car manufacturers, with no change to their existing sales channels.
Industry insiders are quite bullish on the HI model. Changan Automobile's Chairman Zhu Huarong has high praise for Huawei's HI mode, suggesting that while it's worth discussing whether the Smart Selection model complies with industry norms or even safeguards the fundamental interests of users, the HI model is without a doubt problem-free, always aligning with industry policies and consumer demands.
However, Toyota's collaboration with Huawei doesn't follow the HI model, but rather resembles a hardware solution provider relationship.
Thus, it appears Toyota is keeping its options open; the hardware for its future autonomous driving endeavors will utilize Huawei's MDC platform, while the software will be sourced from Momenta.
It's understandable since Toyota has its own requirements when it comes to global-facing data and software information.
However, a significant portion of Huawei's smart driving advantage lies in its powerful algorithms. For Toyota to merely provide hardware and let third parties handle integration, can it really unleash the full potential of Huawei's smart driving technology?
Regarding this collaboration model, some netizens have commented, "It's like buying an iPhone and installing an Android system on it."
Another company involved in this three-way collaboration is Momenta, established in 2016. It's an autonomous driving technology developer that offers solutions and products for Level 3 to Level 4 advanced autonomous driving stages. They specialize in environment perception based on deep learning, high-precision mapping, path planning algorithms, and other technologies.
The core team consists of research talents from Tsinghua University, Massachusetts Institute of Technology, and Microsoft Research Asia. Its founder, Cao Xudong, a graduate of Tsinghua University, has over a decade of research and management experience in the artificial intelligence industry.
The collaboration between Toyota and Momenta has a long history. In March 2020, Momenta and Toyota entered into a strategic partnership, with Momenta providing high-precision map and real-time update services based on camera vision technology to Toyota. This collaboration has jointly promoted the commercialization of Toyota's Automated Mapping Platform (AMP) in China.
On March 19, 2021, Toyota also participated in Momenta's Series C funding round, which not only brought in capital but also deepened the cooperation between the two parties. The triangular relationship among Toyota, Huawei, and Momenta, while somewhat complex, has a clear division of labor. The extent of its potential, however, will ultimately depend on the performance of specific vehicle models.
Despite some tough talk, actions speak louder than words. Toyota's collaboration with Huawei was somewhat anticipated. Prior to this, targeting the Chinese market, Toyota and Huawei joined forces to develop the infotainment system for the Camry, which is powered by the Qualcomm Snapdragon 8155 chip.
Equipped with Huawei's HICAR and its AppGallery, as well as Xiao Yi's voice system, the Camry's infotainment system has seen significant improvements in both fluidity and intelligence.
Obviously, Toyota has tasted the sweetness of Huawei. Next, the all-new generation of Prado has also been confirmed to be equipped with Huawei's intelligent cockpit.
Before this, Toyota was almost synonymous with conservatism, and its attitude towards electric vehicles was also very resistant, with waves of anti-electric vehicle rhetoric.
"The faster new energy vehicles are promoted, the more drivers love traditional cars. Transitioning too quickly can backfire."
"Electric cars are not environmentally friendly, they are being overhyped."
"If the Japanese government prematurely ends the era of fuel cars, Japan's current automotive business model will collapse."
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Various statements abound. Although Toyota has always said that pure electric vehicles are not the only choice and not environmentally friendly enough, it has not actually lain flat on pure electric vehicles.
It is reported that Toyota plans to achieve annual sales of over 5.5 million electrified vehicles globally by 2030. Its luxury brand Lexus will sell electric vehicles in China, Europe, and North America by 2030, and achieve comprehensive electrification worldwide by 2035.
Toyota's new CEO, Akio Toyoda, is known for his commitment to hydrogen energy technology. However, he recently announced ambitious plans to sell 1.5 million electric vehicles annually by 2026, unveiling 10 new EV models.
Simultaneously, Toyota is delving into lithium battery technology, with solid-state batteries at the forefront. The company has pledged to invest ¥20 trillion in battery research and production by 2030, aiming to introduce hybrid vehicles equipped with solid-state batteries by 2025, achieving mass-market integration.
According to data from the Nikkei Index and Tokyo-based research firm Patent Result, Toyota currently holds 1,331 known patents related to solid-state batteries, covering battery structures, materials, and manufacturing processes.
Facing the Chinese market, Toyota has opened its arms in a rare gesture of welcome. In 2020, Toyota and BYD jointly established a venture—BYD Toyota EV Technology Co., Ltd.—dedicated to the research and development of pure electric vehicles. The Toyota bZ4x and bZ3 are products of this collaboration. Although these models have sparked considerable debate domestically and their names have been the subject of ridicule, they have achieved respectable sales figures in the European and American markets.
In a recent media briefing, Toyota China revealed that a brand-new vehicle developed in collaboration with BYD will make its debut at the upcoming Beijing Auto Show.
Toyota will be quite busy at the Beijing Auto Show, not only unveiling the new vehicle co-developed with BYD but also announcing specific details about its partnership with Huawei's intelligent driving solutions. This move signifies a significant shift for Toyota, which was previously seen as lagging behind in the realm of electric and intelligent technologies, as it finally joins hands with a Chinese company.
