Analysis of Huawei's Traditional Automobile Industry Chain

In an article about Huawei's position and prospect in the field of intelligent electric vehicles and vehicle manufacturing, we come to a conclusion that with Huawei's technical knowledge in electric vehicles, smart cars, car networking and other businesses, we only need to build a vehicle with original design, which also shows that Huawei's deep cultivation in the field of smart cars in the future has reached a very high level. Huawei and BYD, Volvo and other domestic and foreign manufacturers have reached cooperation intentions on related technologies before. As a new automobile supplier, Huawei already has a preliminary market scale, and many OEMs are willing to purchase Huawei's related parts, software and services. Therefore, Huawei has the opportunity to become an important pole in the domestic automobile market in the future.

However, in June, 5438+ 10, Huawei issued a document, clearly stating that Huawei does not make complete vehicles, but gathers ICT technology to help enterprises build good cars and become a component supplier of intelligent networked vehicles. Moreover, it is clearly pointed out in the document that "whoever proposes to build a car in the future and who interferes with the company can be transferred from the post and find another post". This harsh statement has broken Huawei's road of vehicle manufacturing to a certain extent, that is, Huawei will definitely become an auto parts and technology supplier.

In fact, judging from the pattern of the domestic automobile market, Huawei has a great chance of success in entering the automobile manufacturing circle and becoming a "new force in automobile manufacturing". After all, Huawei has the core technologies related to intelligent networking and electric vehicles. However, the cars that can be built may not be successful in the mixed domestic automobile market. Of course, we also see that in the era of electric vehicles, there is basically no monopoly of core technologies. In the future, there will be few opportunities for electric vehicles to rely on their own core technologies for monopoly pricing. The bicycle profit of electric vehicles will continue to decline, which will also be the future trend. Therefore, it is not a wise choice for Huawei to build its own car.

Now the situation has become that if it can grow into an automobile supplier recognized by the global market, then a large number of OEMs will depend on the "face" of these suppliers! For example, ZF and Aisin, two global gearbox manufacturers, basically monopolize the core technology of global automatic gearbox. Most OEMs want to assemble automatic gearboxes with mature technology and high recognition, so they must purchase from these two companies. Such suppliers will earn more money than ordinary OEMs.

Let's list a set of data and see how much money you can earn as a supplier. Bosch's total sales in 20 19 was 77.9 billion euros, and its profit before interest and tax was 3 billion euros, equivalent to 23.7 billion yuan. The mainland's sales in 20 19 were 44 billion euros; Denso's sales in 20 19 were 44.6 billion euros. Many domestic manufacturers use parts and services from suppliers such as Bosch, among which Great Wall Motor's overall profit is relatively high, with a profit of only 4.5 billion yuan in 20 19, which is already a very good profit performance in the main engine plant. You know, the sales volume of Great Wall Motor last year was as high as/kloc-0.06 million. Basically, except for overseas brands with core technologies of fuel vehicles, almost all independent brands are working for suppliers.

So in fact, with more and more domestic and foreign automobile manufacturers, the competition among manufacturers is becoming more and more fierce, so the price decline of products will become an inevitable trend. In addition, there is another trend. The more automobile manufacturers, the fiercer the competition, the higher the requirements of manufacturers at the product level, which means that the automobile products themselves need to have higher quality, so this is an opportunity for some advantageous suppliers. We can see that with the fierce competition of independent brands, many independent brands prefer world-renowned suppliers in the procurement of important parts such as gearboxes. Prior to this, there was a case in which a best-selling model with its own brand had limited production capacity because the gearbox was stuck by the supplier, so the position of excellent suppliers in the automobile industry chain was not weaker than that of the OEM.

Therefore, for Huawei, it must be striving to become one of the best suppliers, focusing on the related technologies of intelligent networked vehicles, which can make Huawei a pole in the automobile supply chain system to a great extent. By then, Huawei's revenue and profitability in the automotive field will be much stronger than becoming a "fledgling" OEM!

This article comes from car home, the author of the car manufacturer, and does not represent car home's position.