According to an exclusive story by Yahoo on Wednesday, citing five unnamed sources, production challenges related to a computing unit manufactured by tech giant Huawei have compelled certain Chinese automakers to postpone the delivery of their flagship models.
Changan Auto and Chery Auto, collaborators with Huawei in the development of their high-end electric vehicle (EV) lines, have registered grievances and are engaged in discussions to address the problem, according to two sources.
Additionally, Seres, a smaller car manufacturer, has similarly encountered disruptions, according to one source.
The delays stem from production issues with Huawei's MDC 810 computing unit, used for advanced driver assistance systems. The problem is linked to a component shortage within the MDC 810.
The affected models, launched in late 2023, include Changan's Avatr 12 sedan and Chery's Luxeed S7 sedan. Avatr compensates buyers up to 15,000 yuan for delivery delays, while Luxeed offers up to 10,000 yuan for delayed pickups.
Seres, launching its Aito M9 SUV in December, missed its delivery target of 2,000 vehicles by January 26. The MDC 810, also used in BAIC ARCFOX's Alpha S sedan, has caused production issues in the past.
The MDC 810 facilitates intelligent driving features, akin to Tesla (NASDAQ:TSLA)'s Autopilot, making it a sought-after component in the competitive Chinese electric vehicle market.