Share insights into the direction of intelligent transformation, explore the path of AI capability building, and analyze the key factors for going global.
The automotive industry is going through significant changes, with powertrains evolving, business models transforming, and international markets being restructured. Chinese automotive companies are actively engaged and striving to thrive in this wave of industrial innovation. Digital and intelligent technologies are increasingly integrated into the industry as it transitions from traditional industrial manufacturing to producing connected, autonomous, shared, and electric vehicles.
During HUAWEI CONNECT 2024, HuaweiTech aired an interview program titled "INSIGHT: Intelligence and Globalization, Driving Enterprise Transformations". This program featured Liu Chao, CEO of Huawei Manufacturing and Large Enterprises BU, Feng Xingya, General Manager of GAC Group, and Huang Haifeng, a technology observer and blogger. The guests discussed their insights on intelligent transformation, AI capability building, and globalization development in the automotive industry. Their conversation centered around the two key drivers of transformation: intelligence and globalization.
Embracing intelligent innovation: AI empowers the entire business process of automakers
Technological innovation is playing a crucial role in transforming the automotive industry. From intelligent products like electric and intelligent connected vehicles, to mass customization and improved collaborative management, all of these rely on digital technology.
Liu Chao, CEO of Huawei Manufacturing and Large Enterprises BU, said that AI is reshaping every aspect of the automotive industry's main business processes. AI can accelerate the development of new car models during R&D and design, improve efficiency by optimizing resource allocation during production and supply, and enable rapid feedback of user needs during the sales and service phase, which transforms sales and after-sales models. It is not just an advanced technology, but also a catalyst for integrating data, extracting value, and optimizing decision-making across the industry chain, as well as within a company's own R&D, production, supply, sales, and service processes. This helps companies achieve an overall optimal situation. According to Liu, AI can empower every aspect of the automotive industry, and whoever possesses this technology will have an advantage in future competition.
Feng Xingya, General Manager of GAC Group, believes that the biggest opportunity brought by digital and intelligent transformation is for enterprises to discover more market opportunities. GAC is taking full advantage of the benefits of smart technology to improve quality, reduce costs, and increase efficiency. By embracing intelligence throughout the entire business chain from R&D, production, and supply to sales and service, the company is fully devoted to creating intelligent products. At Auto China 2024, GAC unveiled its "Smart Mobility 2027" action plan. This strategic initiative aims at creating intelligent products and experiences with the support of GAC's AI large model platform, electronic and electrical architecture, and intelligent connected big data platform. Prior to this, GAC also released the "e-TIME Action Plan" in 2019, where e stands for experience, T for technology, I for intelligence, M for manufacture, and E for electrification.
GAC has achieved notable success in digital and intelligent transformation in recent years. One example is in the development of a unique "golden triangle" model for marketing, which leverages AI, big data, and other smart technologies. This model replaces the traditional linear sales and service model (manufacturer → car dealer → customer) with a triangular model that features direct connection, services, and sales. Manufacturers are aware of demands when customers contact sales stores, and can receive direct feedback from customers. By innovating in the customer interaction model, GAC has been able to improve consumer experience and generate new value.
Feng Xingya, General Manager of GAC Group
The automotive revolution can be split into two halves: the first half focuses on new energy, while the second half centers on intelligence. Regarding the intelligent development of the automotive industry, Feng believes that automakers must rely on their own R&D while also collaborating with leading technology companies. This is crucial for combining their respective advantages in fundamental technology and industry know-how to innovate solutions for specific business scenarios.
Liu then introduced Huawei's efforts in helping automotive companies achieve this. First, Huawei Intelligent Automotive Solution BU has been providing solutions. Second, the company offers AI computing and training platforms for automotive companies and autonomous driving system vendors. Moreover, Huawei also provides automatic tools for the annotation, cleansing, and processing of the massive amounts of car model and driving data that comes with vehicle development. Liu explained that Huawei's computing platform provides a foundation for automotive R&D. For instance, Huawei's Advanced Driving System (ADS) is just supported by and evolved on the company's own training platform.
Building AI capabilities: Prioritize the architecture and start with simpler tasks
As the automotive industry goes smarter, companies with AI capabilities that are available, user-friendly, and suitable for their business needs are set to gain an edge in accelerating transformation and enhancing competitiveness. However, implementing AI models in business scenarios can be a huge challenge to technology maturity. What approaches can companies takes to quickly build AI capabilities?
According to Liu, the key is to prioritize the architecture and platform, and start with simpler tasks before tackling more complex ones. This approach has also been adopted by many companies.
- Prioritize the architecture and platform: In the age of the Internet, platforms play a critical role in enabling intelligent transformation, as their capabilities determine the extent to which companies can achieve this transformation. The goal of intelligent transformation is to extend these capabilities to all units and fully equip each unit. A sound architecture can ensure that things are done right the first time. Huawei has developed a well-suited architecture that caters to the company's needs, allowing the company to quickly assemble for different business scenarios, meet diverse business needs, and keep pace with the ever-evolving intelligent technologies.
- Start with simpler tasks: At the outset, enterprises should begin with high-frequency, essential, and high-value scenarios instead of attempting a full-scale rollout. When Huawei started implementing AI, it identified over 80 high-frequency, repetitive, and massive business scenarios. By optimizing and reengineering these scenarios with AI, Huawei has successfully integrated AI into certain activities and human-related tasks, and is continuously experimenting further.
Liu Chao, CEO of Huawei Manufacturing and Large Enterprises BU
Feng shared his thoughts and experience in GAC's transformation from the viewpoint of a company that demands digital and intelligent transformation. He emphasized that digital transformation is a project that requires the leadership's personal involvement and participation. A unified team that works together to drive task implementation and a clear financial investment plan are equally important. Last but not least, it is crucial to base the transformation on actual business situations, so that business departments can perceive the value of digital and intelligent transformation. This is key to ensuring sustained progress in the transformation.
Developing globalization capabilities: From global sales to operations
The global automotive industry landscape is changing amidst tremendous industrial transformation. Chinese automakers are increasingly expanding into international markets and planning for their future as a world-leading automotive company. While these companies may possess unique advantages, they are still faced with many challenges as they go global.
Feng observed that China's intelligent connected new energy vehicles have gained a temporary lead in the global automotive market, thanks to the support of digital and intelligent technologies. This presents an excellent opportunity for global market development. However, there are also challenges that need to be addressed urgently, such as overseas assembly and production, financial and tax issues, data compliance, and localization of products and personnel.
In reply, Liu mentioned that Huawei is dedicated to sharing its own global operation capabilities and offering digital infrastructure solutions to manufacturing companies. The company aims to collaborate with manufacturing companies and expand globally together. Specifically, he elaborated on Huawei's efforts from the following aspects:
- Sharing experience: With over 20 years of experience in global enterprise operations, Huawei can provide digital capability support for companies in global deployment, helping them avoid mistakes and reduce costs.
- Focusing on three scenarios: Huawei has identified three scenarios for global deployment: product sales, production and manufacturing, and R&D and operations. For example, global product sales require consistent global office experience, global financial and supply services, and cross-border data privacy compliance. Global production and manufacturing face issues such as the construction of intelligent factories overseas, unified O&M of digital infrastructure, and remote operations and management of overseas campuses. When it comes to global R&D and operations, major challenges include cross-border R&D collaboration, providing flexible and efficient local services, and implementing agile operations. Regardless of the scenario, CIOs of manufacturing companies need to re-evaluate and optimize their IT architecture when expanding globally to meet the new requirements of global service centers, R&D centers, financial centers, and supply centers on business processes and IT.
- Developing digital solutions: To support enterprises' global business deployment, Huawei has launched a digital infrastructure solution that features "one cloud, one network, and one security and compliance system" at HUAWEI CONNECT 2024. This solution is designed to help companies achieve global transformation of their IT architecture and support rapid business growth in international markets.
To establish global capabilities for automotive companies — from worldwide product sales to global operations, it is essential to continuously iterate digital solutions and collaborate deeply on intelligent transformation practices. Technology observer and blogger Huang Haifeng suggested that companies that prioritize intelligence and form robust partnerships are better positioned to take full advantage of digital and intelligent transformation.
Conclusion
Looking into the future, Feng anticipates that the future of mobility will be both intelligent and multi-dimensional. Liu believes that foundational technologies like AI will empower and add value to the entire automotive value chain, from R&D, production, and supply to sales and service. Huang envisions an opportunity for China's automotive industry to become a leading force in the digital transformation process, potentially capturing a significant market share.
Intelligence and globalization are driving the high-quality development of automotive companies as new technologies, models, and values fuel profound changes across the industry. With a shared focus on embracing intelligence and advancing data-driven innovation, automotive companies are well-positioned to accelerate their transformation towards intelligent and globalized operations, unlocking even greater potential for industry growth and value creation.
