Hong Kong-listed BYD Co. Limited (HK:1211) has partnered with Chinese technology group Huawei to integrate its high-tech smart solutions into BYD’s off-road premium EVs (electric vehicles). Both companies have signed an agreement to use Huawei’s autonomous driving system in BYD’s models under the latter’s premium EV brand, Fangchengbao. BYD shares gained 0.61% in today’s trading session.
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Fangchengbao, the latest addition to BYD’s sub-brands, offers professional-grade new energy vehicles (NEVs).
BYD Collaborates with Huawei
BYD’s collaboration with Huawei marks a strategic shift as the company aims to boost its presence in the premium EV market. With this move, BYD is targeting higher profitability through increased sales of its high-end brands like Denza, Fangchengbao, and Yangwang. The China Association of Automobile Manufacturers reported that these premium brands contributed just 5% of BYD’s total sales in the first half of the year.
According to the agreement, BYD’s Bao 8 SUV from the Fangchengbao brand will be the first model to feature Huawei’s Qiankun intelligent driving system. It is set to launch later this year.
Additionally, both companies will undertake research and development activities together on smart driving systems.
BYD Focuses on Next-Gen Driving Technology
BYD has made significant investments in developing its advanced driver-assistance system (ADAS). However, the company continues to depend on external suppliers for intelligent features in its premium models.
This deal also marks Huawei’s expanding role as a key supplier of ADAS in the EV sector. Recently, Volkswagen’s (DE:VOW) Audi brand also revealed plans to integrate Huawei’s ADAS technology into its EVs tailored for the Chinese market.
Is BYD Stock a Good Buy Now?
Analysts maintain a highly bullish stance on BYD stock. Last month, BYD stock received five Buy recommendations from analysts.
According to TipRanks, 1211 stock has a Strong Buy rating, backed by eight Buy recommendations. The BYD Co. share price target is HK$336.95, which implies an upside of 47.3% from the current trading level.
