Xu Zhijun, Huawei’s Rotating Chairman: 5G Connected Vehicles to Account for 95% in the Next Five Years

In a bold prediction that underscores the rapid evolution of China’s automotive industry, Huawei’s Rotating Chairman, Eric Xu, announced today at MWC Shanghai that he anticipates a significant surge in 5G-connected vehicle adoption. He stated that by 2025, 5G-enabled connected cars will account for approximately 30% of all new passenger vehicle sales in China, a figure expected to climb dramatically to 95% between 2026 and 2030.

Xu emphasized the critical opportunity presented by the rise of smart connected vehicles, highlighting the need for robust infrastructure. He noted that autonomous driving systems must operate independently, relying on onboard intelligence rather than solely on network connectivity.

However, Xu differentiated between the connectivity needs of the vehicle’s cockpit and the vehicle’s overall operational systems, advocating for separate approaches. He suggested that the cockpit’s connectivity, catering to consumer preferences, should follow a business-to-consumer (B2C) model, allowing users to leverage their existing smartphone ecosystems and purchase data plans directly.

Conversely, the vehicle’s telematics unit (T-BOX) connectivity, essential for functions like vehicle diagnostics and over-the-air updates, should follow a business-to-business (B2B) model, with automakers retaining control over the network connectivity choices, according to Xu.

Xu also addressed some of the challenges currently facing 5G-connected cars. He pointed out issues such as complexities surrounding 5G intellectual property rights (IPR), price competition hindering the value proposition, and inconsistencies in user experience. Addressing the 5G IPR hurdles requires collaborative efforts of the mobile communications industry.

He called on the GSMA to take a leading role in resolving these industry-wide concerns and conveyed Huawei’s commitment to assisting in these efforts as well.