Richard Yu, CEO of Huawei’s Consumer Business Group (BG), has announced Huawei's entry into the automotive sector with the introduction of the Luxeed S7 electric sedan. This move also hints at a potential partnership with FAW Group, a key manufacturing ally of Volkswagen and Toyota, which could make them the newest addition to Huawei's growing car alliance. This development sets the stage for Huawei's foray into the electric vehicle (EV) market.
Strategic Collaboration and Cooperation Models
Huawei has formed partnerships with prominent car manufacturers through standardized parts supply models, the "Huawei Inside" (HI) model, and the Harmony Intelligent Mobility Alliance (HIMA). HIMA represents the deepest level of cooperation and involves select vehicle partners as investment cooperation targets. Notable HIMA products include the "WenJie" (AITO) SUV co-developed with Seres and the "ZhiJie" (Luxeed) electric sedan co-developed with Chery. Huawei's commitment to innovation and collaboration in the electric vehicle space is further emphasized by upcoming models such as "XiangJie" from BAIC and "AoJie" from JAC.
Market Impact and Recent Partnerships
The launch of the Luxeed S7 has had a positive impact on the automobile manufacturing sector, leading to a late-session rally. Chinese automobile manufacturing companies like FAW and FAWAY experienced their maximum daily price increase, while BAIC BluePark came close to reaching its daily limit. JAC Motors and Seres also followed an upward trend, reflecting the market's favorable reception of Huawei's entry into the automotive industry.
A recent memorandum of investment cooperation signed between Changan Automobile and Huawei Technologies Co., Ltd. on November 25th further solidifies Huawei's presence in the electric vehicle sector. The agreement outlines plans to establish a joint company focused on research, design, production, sales, and service of intelligent automotive systems and component solutions. Changan Automobile intends to strategically invest in this venture.
Luxeed S7 Pricing and Features
The Luxeed S7, co-developed with Chery, is competitively priced at RMB 249,800 ($35,000), positioning itself as a strong competitor against Tesla's Model S and Porsche's Taycan 4S. Huawei's pricing strategy reflects a commitment to market competitiveness, with the Luxeed S7 priced lower than the previously revealed pre-sale starting price of RMB 258,000.
The Luxeed S7 boasts advanced technologies from Huawei, including partially autonomous driving software, a proprietary operating system for infotainment, and Tuling: a high-tech chassis with adaptive air suspension and torque vectoring for enhanced handling and comfort.
Market Position and Monthly Deliveries
Huawei's presence in the electric vehicle market continues to grow, as evidenced by their increasing monthly delivery targets. Aito-branded electric vehicles are expected to achieve record monthly deliveries ranging between 16,000 and 18,000 in the current month. Projections show deliveries surpassing 23,000 in December and further increasing to over 30,000 in January. These ambitious targets demonstrate Huawei's commitment to making a substantial impact in the rapidly evolving electric vehicle landscape.
Huawei's Luxeed S7 launch, along with their strategic collaborations and partnerships, marks a significant stride into the electric vehicle market. With cutting-edge technologies, competitive pricing, and a commitment to collaboration, Huawei is poised to make a lasting impression on the automotive industry.
