As the release of the Model Y Juniper refresh approaches, various electric vehicle manufacturers are rushing to introduce their own competitors to Tesla's most popular model.
Rising Electric SUVs
Recently, several electric SUVs in the Model Y category have been announced, including the impressive Onvo L60, which boasts better specifications than Tesla's offering at a significantly lower price. Onvo is a new midrange brand from the well-known EV producer NIO, recognized for its top-quality electric vehicles. However, other brands with less experience in manufacturing are struggling to keep up with Tesla's updates.
Huawei's New Entry
One such brand is Huawei, a major player in telecommunications and consumer electronics, but still relatively new to the electric vehicle sector. Its sub-brand, Luxeed, which is developed in collaboration with Chery—one of China’s largest automakers—has just unveiled its own competitor to the Model Y Juniper called the R7. This stylish SUV has some advantages over the aging Model Y, including an 800V powertrain. However, the upcoming Juniper facelift will also feature an 800V architecture, along with numerous enhancements in both performance and design.
Specifications and Pricing
The Luxeed R7's specifications, however, are not particularly impressive; it offers either an 82 kWh or a 100 kWh long-range battery, with only the top variant equipped with a dual-motor setup for all-wheel drive. Acceleration figures are comparable to Tesla's or even slower. While the larger batteries provide a slightly longer range than the current Model Y, this edge might be diminished by the time the Juniper is launched in Q1. The R7 includes appealing features like a mini fridge in the center console and heated, ventilated massage seats, but similar offerings are available in NIO's Onvo L60.
Huawei is also relying on its software expertise to ensure a seamless self-driving experience, equipping the Luxeed R7 with its Qiankun ADS 3.0 driver-assist system, which includes LiDAR and is AI-driven like Tesla’s Full Self-Driving system, approved for both highway and city use.
Market Challenges
Despite these features, Huawei has struggled to price the Luxeed R7 lower than the Model Y. It starts at approximately $36,940, which is slightly more expensive than Tesla's base model. Huawei's CEO, Richard Yu, acknowledged that the company would still incur losses of around 30,000 RMB (about $4,267) on each R7 sold. He remains optimistic that increased production could lead to profitability.
This situation is common for many new entrants in the industry, except for Xiaomi, which has leveraged its experience in consumer electronics manufacturing to quickly ramp up production of its first SU7 electric vehicle. Xiaomi's EV business is now profitable, even with a competitive package in terms of specifications. The company is also developing its own direct competitor to the Model Y Juniper, which is expected to launch next year, coinciding with Tesla's facelift.
