China’s electric vehicle market is undergoing a rapid transformation in 2025, and the latest surprise comes from two unlikely allies. XPeng Motors and Huawei—longtime competitors in the intelligent driving space—have announced a rare partnership to jointly advance AR head-up display (HUD) technology. The timing is no coincidence: the move comes on the heels of new government restrictions banning the use of buzzwords like “autonomous driving” and “advanced intelligent driving” in promotional language.