(Yicai) March 18 -- BMW has announced a tie-up with Chinese tech giant Huawei Technologies to jointly develop a in-car smart ecosystem for the German luxury automaker's models made in China.

BMW's new Chinese market models will be equipped with digital services, such as BMW Digital Key, Huawei HiCar, and MyBMW App, based on Huawei's HarmonyOS Next operating system, the Munich-based company announced on Weibo yesterday.

MyBMW App and Mini App, which allow drivers to remotely activate connected driving services, check the fuel level and battery charging status, as well as other services, were added to HarmonyOS Next's app store at the end of last year. BMW Digital Key will launch this year, and the deeply integrated Huawei HiCar will debut in 2026.

"In China, nearly a quarter of our mobile application users rely on Huawei devices," said Sean Green, president and chief executive of BMW Group China. “By deeply integrating with the HarmonyOS ecosystem, BMW will enhance in-car applications and digital connectivity services for HarmonyOS users, elevating intelligent experiences in high-frequency use scenarios.”

BMW has about 460 Chinese suppliers and is stepping up collaboration with Chinese tech partners, especially in cutting-edge technologies, such as large language models, generative artificial intelligence, and intelligent voice interaction.

China is BMW’s largest single market globally, according to its financial statement released on March 14. But the company’s sales in the country fell 13.4 percent to 714,500 vehicles last year, dragging down global sales by 4 percent to 2.45 million.

BMW's worldwide revenue fell 8.4 percent to EUR142.4 billion (USD155.4 billion) in 2024, with net profit plunging 37 percent to EUR7.7 billion (USD8.4 billion) and its profit margin dropping to 7.7 percent from 11 percent.

"The Chinese market is highly dynamic and characterized by increased competitive pressure," Oliver Zipse, chairman of BMW's management board, said on the firm’s earnings conference call.

"In 2024, we delivered over 100,000 battery electric vehicles to customers in China for the first time," Zipse noted. “This makes China our biggest single market for EVs -- even though our sales performance there was dampened last year by persistently low consumer sentiment.”

He also said BMW plans to launch more than 40 new models across global markets by 2027, covering various drive modes and all market segments. The BMW iX3, the first mass-production model under BMW's new EV architecture, will debut at the Shanghai Auto Show next month and begin mass-production for the Chinese market next year.

Huawei does not manufacture cars, preferring instead to be a supplier of core technologies in the intelligent vehicle sector.

In addition to BMW, Huawei has also teamed up with Audi. The German automaker's joint venture in China, FAW-Audi, is expected this year to launch five new models with advanced driver assistance systems co-developed with the Shenzhen-based company.

Editor: Futura Costaglione