Several Chinese automakers have had to delay deliveries of flagship models due to production issues with a computing unit made by Huawei, according to Reuters sources.

Changan Auto and Chery Auto which have worked with Huawei to develop premium electric vehicle (EV) brands have lodged complaints and are in talks to resolve the issue, news agency sources said.

Seres has also been affected, a Reuters source said.

The MDC810 computing unit powers driver assistance systems and is central to Huawei’s ambitions to become the dominant supplier of software and components for smart electric vehicles, Reuters said.

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By GlobalData

The production issue relates to a shortage of a component for the MDC 810, according to a Reuters source.

Huawei, Chery and Seres did not respond to Reuters requests for comment while Changan referred the request to its Avatr division, which did not respond.

The three models the news agency sources said had been affected were launched in the last quarter of 2023.

Changan held 20,000 orders for its Avatr 12 sedan, priced from CNY300,800 ($US41,880)on 1 December the company told Reuters.

The report noted Avatr vice pPresident Li Pengcheng recently cited “challenges in key component supplies” as a factor in delivery delays of two weeks on average but did not name Huawei.

Avatr plans to compensate buyers by as much as CNY15,000 for late deliveries, Reuters said.

Chery’s Luxeed has said buyers could be reimbursed by up to CNY10,000 if they were unable to pick up their S7s as promised.