AITO M5, the first HarmonyOS vehicle Photo: VCG

Chinese telecommunications giant Huawei launched on Thursday the first HarmonyOS vehicle named AITO M5, developed with carmaker Seres, marking a step forward into the auto industry amid a shrinking smartphone business caused by US sanctions.

The AITO M5 was officially rolled out at the Huawei flagship product launch event held in South China's Shenzhen on Thursday. Huawei defined the car as "an intelligent luxury SUV offering optimal driving experience," claiming the car will "redefine smart mobility."

The AITO M5 is the first vehicle to feature the latest HarmonyOS Smart Cockpit. The HarmonyOS bridges the information gaps between different devices, meaning vehicles that adopt this feature can transition from data silos to super terminals that seamlessly communicate with people, mobile phones, smart homes, and smart wearable devices.

"Focusing on the All-Scenario AI Life strategy, Huawei uses its ICT capabilities built in over 30 years to empower the automotive industry with unparalleled intelligent driving experience. It aims to bring digital to every vehicle, helping OEMs further improve and sell more vehicles," Richard Yu Chengdong, Executive Director and CEO of Huawei's Consumer Business Group, and CEO of the Intelligent Automotive Solution BU said at the launch event Thursday.

Yu also announced the car was designed by Huawei's smartphone designer team.

The AITO M5 will be showcased at 180 Huawei stores in 42 cities from Thursday and test drives and vehicle reservations will be available at 500 Huawei stores in 118 cities, from January 20 next year, according to the firm.

Huawei's latest foray into the auto sector also comes as analysts said it might be the most adequate sector for Huawei to compensate its loss in the smartphone sector

While the firm continuously stressed that it does not see itself as a car manufacturer it aims to be a digital car-oriented developer and supplier of new components that would enable car companies "to build better vehicles."

During the event Huawei also launched a range of products, including its latest P50 Pocket foldable handset, the watch D series, Huawei eyewear and the next-generation MateBook X Pro, highlighting an all-scenario, smart and fully connected ecosystem centered on the HarmonyOS, its self-developed operating system, replacing Google's AndroidOS.

As of December, there are more than 220 million Huawei devices running on HarmonyOS and shipments of related devices increased by over 100 million in 2021.