Why phone brands like Xiaomi and Oppo are going to make cars

Cars are getting smarter and are sometimes jokingly referred to as ‘computers on wheels’. That statement may well become reality, as more and more tech companies are entering the car industry. This is why smartphone brands are going to make cars.

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Why do phone brands make cars?

The future of cars lies in electric driving. The industry invests many billions to go from petrol pump to charging station. Phone companies such as Xiaomi, Samsung and Oppo also contribute, although this seems a strange combination at first glance. After all, what does a telephone maker know about cars?

Here is an overview of telephone brands that will (also) make cars in the coming years, and why they are doing this. Since we are an Android website, let’s see the mysterious Apple Car disregarded.

Xiaomi

Xiaomi will start supplying electric cars in the first half of 2024. The CEO of the company announced this during a presentation to investors last October. The intention is that the company will produce about 300,000 cars per year.

There are not many details yet, but it seems that the company does not only want to storm the home market of China. According to by Reuters picked up rumors, Xiaomi is going to sell its electric car internationally. By going outside its own borders early, the company wants to hitch a ride on the globally growing market for electrically powered cars, according to the news agency.

Concept image of the ‘Xiaomi Mi Car’.

Why Xiaomi is going to enter the market? Because the company does not see itself as a telephone manufacturer, but as a seller of ‘smart’ devices. Xiaomi, for example, has been selling electric scooters and all kinds of household items for some time.

“Electric cars are an important part of smart living and the market is set to grow rapidly in the next decade,” Xiaomi CEO Lei Jun said in March. “It is only natural for us to enter this market.”

Huawei

Huawei has been at loggerheads with the US government since 2019 and is therefore not allowed to work with companies such as Google. That is annoying for the company, because it means that Huawei smartphones are delivered without Google apps. Of course, this reduces interest considerably and the company has to look for other sources of income.

The next logical step then is to make cars, right? For a long time there were rumors that Huawei would also enter the automotive industry, but the case is slightly different. The Chinese company will not produce its own cars, but will collaborate with the industry.

For example, Huawei makes software for (electric) cars. HarmonyOS, as the platform is called, is a complete operating system for on the go. The system is fully integrated into the car and can, for example, notify the driver when someone is in the blind spot.

The first car with Huawei’s HarmonyOS on board is the Aito M5. This electric car will be available in China from the beginning of next year and costs approximately 35,000 euros. A fun addition is that you can unlock the car with a Huawei smartwatch.

Huawei Aito m5

Oppo

Oppo is also going to make cars. If everything goes according to plan, the first Oppo EV can hit the road in 2024. According to website 91Mobiles, which claims to be aware of the plans, will initially be available in India.

It is still unclear whether the originally Chinese company will later also sell other cars. Further details are still pending. For example, we do not yet know whether Oppo will build the electric car itself, or whether it will leave this job to other companies.

Oppo falls under parent company BBK. Phone manufacturers such as OnePlus, Realme and Vivo are also part of this group. 91Mobiles writes that BBK has been considering entering the automotive industry for some time and now finds the preconditions good enough to make the switch.

Rising fuel prices, among other things, are contributing to this. Gasoline and diesel are costing more and more, prompting the industry to accelerate the development of electric vehicles. In addition, BBK sees an interesting next product group in cars to make ‘smarter’, especially now that other markets (such as the smartphone branch) are becoming increasingly saturated. This puts pressure on margins.

Android auto's chips van samsung

Samsung

When it comes to cars, we can best compare Samsung to Huawei. The originally South Korean company ‘is’ in the car industry, but does not make its own cars. Instead, Samsung produces all kinds of parts for (smart) cars, including processors and chips.

For example, the recently unveiled Exynos Auto T5123 chip can handle 5G. This allows car occupants to stream a Netflix movie or make video calls on the go. As far as we know, Samsung has no plans to produce cars itself.

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Source: Android Planet by www.androidplanet.nl.

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