Huawei, Xiaomi & Foxconn: Why Tech Giants are Betting on EVs
Consumer electronics and automotive manufacturing are beginning to converge as technology firms pivot towards electric mobility.
These companies are leveraging their established capabilities in software development and battery technology to enter a market that shares similarities with their core business.
Smartphones and electric vehicles (EVs) have a lot in common, with software-defined architectures, rapid technological developments and a fundamental reliance on lithium-ion chemistry.
The International Data Corporation projects that worldwide smartphone shipments may decline by almost 1% in 2026, so tech manufacturers could be exploring alternative growth opportunities.
Xiaomi's automotive venture
Smartphone and hardware manufacturer Xiaomi has established an Auto subsidiary that combines industrial manufacturing with smart software and artificial intelligence, aiming to "redefine the automotive industry".
The SU7, Xiaomi's first motor vehicle, launched in 2024 with a maximum speed of 265 km/h.
The vehicle incorporates Xiaomi HyperOS, enabling it to operate as an extension of users' smartphones and smart home ecosystems.
On the debut of the car in 2023, Lei Jun, Founder, Chairman and CEO of Xiaomi Group, said: "Xiaomi has decided to invest tenfold, starting from the development of fundamental core technologies, committing to constructing an outstanding vehicle.
“Through 15 to 20 years of effort, Xiaomi aims to become one of the top five global automakers."
The company has distinguished itself from rivals by constructing a dedicated EV factory equipped with a proprietary die-casting method.
Sony Honda collaboration launches AFEELA
Technology and entertainment giant Sony formed a joint venture with Honda in 2022 to produce BEVs.
The collaboration markets vehicles under the AFEELA brand, with deliveries of the inaugural model, AFEELA 1, scheduled to commence in late 2026.
This joint venture capitalises on Honda's automotive manufacturing and safety knowledge whilst Sony contributes software, sensing, network and entertainment technologies.
The AFEELA 1 incorporates advanced driver assistance systems and an interactive personal agent, with an estimated range reaching up to 300 miles.
It also features the Media Bar, a screen on the outside of the vehicle that can display information like charging status, weather or personalised messages.
Foxconn's multi-platform approach
iPhone manufacturer Foxconn established Foxtron through a joint venture with car company Yulon in 2020.
That same year saw Foxconn introduce the MIH Open EV Platform, a standardised hardware and software framework enabling other companies to develop electric vehicles more rapidly and economically using its foundation.
Alongside these efforts, Foxtron has developed its own EV portfolio encompassing SUVs, sedans, buses and pickups.
“Our vision at Foxconn is to work with leading customers around the world to create an inter-connected world with smart technologies,” said Young Liu, Chairman and CEO of Foxconn, on the launch of its EV strategy in 2020.
“We do that by providing next-generation technology solutions to our customers and partners, in turn supporting them to provide products with the highest value to their customers.”
The tech firms supplying EV-makers
Several technology corporations have chosen to supply hardware and software solutions rather than manufacturing complete vehicles.
Huawei has developed HarmonyOS Cockpit, which features multi-screen displays, voice integration, device connectivity and integration with its intelligent driving systems.
Samsung produces camera modules, the Exynos Auto processor series and batteries used inside EVs.
LG creates electric vehicle powertrains through LG Magna e-Powertrain, alongside vehicle displays and digital cockpits.
OPPO has established partnerships with manufacturers, including SAIC Motor-owned MG, to integrate OPPO Intelligent Drive into electric vehicles for phone-to-car connectivity.
Vivo offers Jovi InCar, a software solution connecting Vivo phones with car dashboards for smart navigation and voice control.
