Shishi Jin's questions to Ecarx Holdings Inc. (ECX) leadership • Q2 2024
Question
Shishi Jin from Macquarie asked about the primary drivers of the 40% hardware sales growth, the largest product segment contributing to it, and any new targets for total vehicles equipped with ECARX technology. She also inquired about the overseas market strategy, competitive landscape, and how ECARX is addressing geopolitical risks related to auto software.
Answer
CFO Phil Zhou and COO Peter Cirino explained that robust hardware growth was driven by successful global vehicle launches like the Volvo EX30 and Polestar 4. Qualcomm-based solutions still constitute about 80% of hardware revenue, with the Antora series growing to nearly 20%. Regarding geopolitical risks, Peter Cirino stated that ECARX's strategy involves significant investment in local European operations and engineering teams, which they started four years ago, to build local relationships and globalize their technology stack, thereby mitigating country-specific concerns.