Monday, June 22

Huawei’s advanced driver-assistance technology package will become more expensive for Chinese consumers starting in July, as rising global chip and memory costs ripple through the automotive industry.

According to Lanjinger reports, discounts on Huawei’s Qiankun ADS advanced driver-assistance package will be reduced from July 1, increasing the effective purchase price for customers by about 3,000 yuan ($440) after automaker subsidies are taken into account.

Discount Adjustments Increase Consumer Cost

Huawei’s Qiankun ADS Max and Ultra packages carry an official retail price of 36,000 yuan. However, the company has typically offered promotional discounts that lowered the purchase price to 32,000 yuan.

Automakers that use Huawei’s intelligent driving platform, including Aito and Avatr, have also provided subsidies of around 20,000 yuan for customers purchasing the feature package.

As a result, buyers have generally paid about 12,000 yuan for the system after discounts and subsidies.

Beginning in July, the promotional price is expected to increase to 35,000 yuan. After applying automaker subsidies, the final cost to consumers will rise to approximately 15,000 yuan.

Customers who have already placed deposits but have not yet taken delivery of their vehicles will reportedly remain eligible for the previous post-subsidy price.

Rising Chip Costs Drive Price Increase

The adjustment comes amid increasing costs across the global semiconductor supply chain.

Industry demand for artificial intelligence infrastructure has surged over the past year, increasing competition for advanced chips and memory components used in both data centers and automobiles.

The expansion of AI-related investments by major technology companies has contributed to higher demand for high-bandwidth memory and other semiconductor products, placing pressure on overall supply availability.

According to industry data cited in the report, contract prices for conventional DRAM memory chips rose between 90% and 95% in the first quarter of 2026 compared with the previous quarter. Server DRAM prices increased by about 90%, while NAND Flash prices rose between 55% and 60%.

These components are widely used in advanced driver-assistance systems and vehicle computing platforms.

Industry-Wide Trend Emerging

Huawei is not the only company responding to higher component costs.

According to the report, more than 10 automakers have recently increased prices or reduced discounts on vehicles and option packages equipped with advanced driver-assistance technologies.

BYD is among the manufacturers that have adjusted pricing. The company reportedly increased prices on intelligent driving option packages for some models across multiple brands earlier this year, citing higher costs for automotive-grade memory components.

The trend highlights growing cost pressures facing automakers and technology suppliers as increasingly sophisticated driver-assistance systems require larger amounts of computing power, memory, and AI-related hardware.

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Jason Zhao has been covering China’s electric vehicle industry and regulatory landscape for EVMagz.com since becoming a reporter in 2019, focusing on EV industrial policy, government incentives, manufacturing strategy, and the competitive dynamics among Chinese automakers. With a background in public policy analysis and digital journalism, he brings a clear, data-driven perspective to how regulation and industry development intersect in the world’s largest EV market. Outside of work, Jason enjoys evening badminton, urban night photography, and tracking policy developments through economic research journals.

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