A SWOT Analysis of Competitive Advantages and Challenges of Huawei and Xiaomi in the New Energy Vehicle Industry

Based on the global goals of "carbon peaking and carbon neutrality" and the intelligent transformation of the automobile industry, this paper applies the SWOT framework to analyze the strategic entry of Huawei and Xiaomi into the new energy vehicle (NEV) industry. The study focuses on the differences in the strategic positioning, competitive advantages and challenges, and potential optimization paths of the two companies. The research shows that Huawei, with Information and communication technology (ICT) at its core competence, adopts the "Huawei + automaker"corporation model and positions itself as an "intelligent vehicle solution provider." Huawei emphasizes the output of Gan Kun intelligent driving systems and HarmonyOS cockpits, demonstrating strong technological research and development capabilities, while facing limited control over vehicle production and manufacturing. In contrast, Xiaomi leverages its AIoT ecosystem to directly enter vehicle manufacturing and continues its cost-performance-oriented market positioning. Xiaomi adopts a diversified strategy supported by strong marketing capabilities and effective cost control, but its development is constrained by sufficient automotive manufacturing experience and challenges in achieving breakthroughs in the high-end market. A comparative analysis of the two firms reveals that the success of tech- companies in cross-industry expansion lies in fully leveraging core strengths while making up for weaknesses through strategic cooperation. Brand-layered operations and ecosystem synergy have become important directions for the continuous development of the industry. The research enriches the literature on cross-industry strategies of technology enterprises and provides references for the strategic optimization of Huawei and Xiaomi and implications for the high-quality development of China's NEV industry.