China’s EV players largely surprised with Apple’s move to wind up ‘Project Titan’

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Multiple electric vehicle industry players and industry insiders are largely surprised as they commented on Apple's latest move to wind up its electric car effort, called Project Titan, while shifting its resources to artificial intelligence (AI) innovation and development. 

Li Xiang, founder and CEO of Chinese EV maker Li Auto, said on his Weibo account on Wednesday that Apple giving up building cars and focusing on AI is absolutely the right, strategic choice, which is of an appropriate timing. He added that AI will become the topmost entry point for all devices, services, applications and transactions.

He Xiaopeng, CEO of Chinese EV startup XPeng said that he did not expect "Apple would play its cards like this in 2024." He said that new entrants in the automotive industry would all play their cards within 2024 as discussed last year, except for Apple. The upcoming decade (of EV contest) after 2024 would be a knockout and all-star game.

And, 360 Security Technology's founder and chairman Zhou Hongyi said that Apple may give up building EVs and shift to "all in AI" as every company must embrace AI, or it will be "killed." 

Elon Musk, head of Tesla replied to a post of the news on the X social media site with a saluting emoji and a cigarette on Wednesday. 

Apple is canceling its decade-long endeavor to build an EV and made the disclosure internally on Tuesday, Bloomberg reported, citing people with knowledge of the matter. The decision was shared by Chief Operating Officer Jeff Williams and Kevin Lynch, a vice president in charge of the car effort. 

Bloomberg report noted that the two Apple executives told staffers that the project will begin winding down and that many employees on the car team known as - the Special Projects Group - will be shifted to the AI division under executive John Giannandrea. The employees will focus on generative AI projects, which has been an increasingly key priority for the company.

Apple CEO Tim Cook told investors earlier this month that it has been working on generative AI and was planning to announce its progress later this year, the Wall Street Journal reported. "We've got some things that we're incredibly excited about that we'll be talking about later this year," he said on a call with analysts.

The expansion of EVs in the US market is slowing down. The sales of all-electric vehicles plus plug-in hybrids that can also be powered by gasoline or diesel more than doubled in 2021 and grew 62 percent in 2022, but the figure was 31 percent last year, when 15 percent of all vehicles sold were plug-ins, Bloomberg reported earlier on February 1. 

Nevertheless, Chinese players including Xiaomi and Huawei have stepped up efforts by releasing new EVs equipped with advanced digital features, while actively cooperating with domestic car manufacturers. 

Trumpchi - an automotive marque owned by the Chinese automaker GAC Group - released its new car model in collaboration with Huawei on February 24, which realized deep integration with Huawei's ecosystem and is linked with Huawei's cell phones, computers, and smart home products, according to media reports. 

Meanwhile, Xiaomi's booth at the ongoing Mobile World Congress in Barcelona, Spain, has drawn widespread attention from enthusiastic visitors with a "Gulf Blue" Xiaomi SU7 car put on show, the Xinhua News Agency reported. 

Xiaomi officially launched the "Human x Car x Home" platform globally, integrating personal devices, smart home products, and cars, facilitating seamless connection and real-time coordination of hardware devices, and providing collaboration with industry partners, Xinhua reported.