Tech Trends

2022 EV Market Outlook: Tesla Sales and Huawei Harmony

This article looks at the 2022 new energy vehicle market from two angles: Tesla’s sales growth potential and Huawei Harmony’s possible expansion into Europe.

The original article was written as an outlook, so the wording below keeps the same time context: Tesla sales were expected to keep rising in 2022, while Huawei’s Harmony ecosystem was discussed as a potential challenger in the software and smart vehicle market.

Tesla Outlook

Tesla sales may exceed 1.3 million in 2022

Tesla Sales May Exceed 1.3 Million in 2022

Before many traditional car companies had made a major splash in electric vehicles, Tesla’s sales already stood out. Many people believed that once traditional car companies rolled out electric cars on a large scale, Tesla’s sales would be hit hard.

The original article argued that the fact was different: Tesla sales were still growing fast, especially after the launch of Model 3 and Model Y. These two cars were relatively inexpensive while still offering strong power and a good driving experience.

Tesla electric vehicle market outlook

In 2021, the global core shortage and supply chain shortage severely limited Tesla car production capacity. Even so, Tesla’s 2021 deliveries exceeded 900,000 units, surpassing most electric car brands on the market. The article described Tesla as still the dominant player in the field of new energy vehicles.

Growth Drivers

Why sales were expected to rise

Why the Article Expected Tesla to Keep Growing

Brand recognition and technology image

Tesla’s sales had not yet gone through the roof and were still expected to skyrocket in 2022. The first reason was Tesla’s brand recognition, which Chinese consumers valued highly. Tesla entered the Chinese market early, and its three-electric technology was seen as leading the industry. The article compared Tesla’s symbolic status in new energy vehicles to Apple’s status in cell phones.

Power and driving experience

Tesla could give consumers strong power and driving experience, and even the entry-level model had strong power. This was very important for young consumers. As a result, the brand was widely welcomed around the world.

The article also noted that there were many Musk admirers in Europe, including Volkswagen CEO Herbert Diess, who was described as a well-known “Musk fan” and had invited Musk to speak to Volkswagen Group executives.

New factory capacity

In 2022, the original article expected Tesla Austin and Tesla Berlin factories to be successfully implemented. At the same time, Tesla’s Shanghai super factory was expanding to increase capacity. If Tesla could also get rid of the chip-shortage dilemma, production capacity was expected to surge in 2022.

Rumored entry-level model

The article also discussed an entry-level Tesla model, described as the rumored Model 2 with its official name still to be determined. It was expected to be a compact two-seater in the same class as ID.3.

If the new Tesla car were priced at only $25,000, the article argued that it would be a major threat to new car-making forces and traditional car companies, and many brands would have to face Tesla more directly.

Huawei Harmony

Harmony may sweep Europe

Harmony May Enter the European EV Software Market

In the two years before the article was written, Huawei had been suppressed by the United States and faced hardware stagnation in the cell phone business, along with a new round of chip cut-off crises. It was forced to open a strategic transformation and attack the software operating system level, including Huawei cloud computing, Harmony OS, Huawei HI, and related businesses.

In the first half of 2021, the BAIC Arcfox Alpha S Huawei HI version was listed in a high-profile launch, and Ceres SF5 was introduced into Huawei offline showrooms. Huawei also cooperated with some domestic Chinese automakers. The article argued that Harmony had achieved good results in the domestic market, but Huawei was not satisfied with this and was preparing to enter the European market.

Huawei Harmony OS automotive software outlook

Huawei was partnering with auto companies to enter the new energy vehicle market, and the article described the challenge as facing Tesla and Google, among others. Tesla had a leading position in the global new energy vehicle market, and Huawei’s entry into the new energy vehicle market was expected to challenge Tesla’s position.

To compete with Tesla, Huawei launched self-driving technology and a vehicle system. Previous tests in Shanghai showed that Huawei’s self-driving technology could ensure safe driving on complex roads due to the use of LIDAR, a technology recognized by many companies worldwide. In contrast, the article noted that Tesla’s self-driving technology did not use LIDAR.

Huawei had previously defeated European and American companies in communications equipment and smartphones. The original article described Harmony’s ambition as challenging Google and Tesla at the same time, while noting that whether it could take market share from those two giants still had to be watched.

Summary

2022 Was Expected to Be a More Anticipated Auto Market

There was no doubt, according to the original article, that the auto market in 2022 would be more anticipated. Many uncertainties, such as new industry trends, the scale of new energy growth, and the further rebound of the overall market, were expected to find answers in the new year.

At the same time, the article emphasized that the market still needed to be soberly aware of uncertainty: the uncertainty of the new crown epidemic, the uncertainty of chip supply, and the uncertainty of the unknown. All of these could impact the auto market.

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