Chery Automobile and Huawei Technologies are all set to stir up the electric vehicle (EV) market with the debut of their joint venture, Luxeed. The brand’s first offering, the S7, is slated to hit Chinese roads this November. But here’s the twist: It aims to not only compete with, but also outdo Tesla’s popular Model S.

Huawei is already struggling to enter the US market, so it’s trying to compete

Huawei’s Richard Yu Chengdong has been vocal about the S7’s potential, although exact specs are still hush-hush. With an aim to woo China’s burgeoning middle class, who have shown a penchant for modern digital features like voice controls and self-driving tech, the S7 seems to be positioning itself as the go-to EV for tech enthusiasts.

Huawei Electric

What makes Luxeed special is the confluence of Chery’s automotive expertise and Huawei’s tech prowess. Chery, already on an upward trend with a 17% increase in EV deliveries last year, brings manufacturing clout to the table. Huawei, meanwhile, is diversifying its portfolio by entering the EV arena after grappling with U.S. sanctions. Its Huawei HI system, launched last year, brings cutting-edge computing and autonomous driving capabilities.

According to Gao Shen, an independent analyst, the Luxeed brand is “more than the sum of its parts,” benefiting from both Chery’s manufacturing capabilities and Huawei’s tech innovation. As the Chinese EV market is expected to swell by a staggering 55% this year, the Luxeed S7 has its work cut out for it.

The Chinese EV market is already buzzing with local brands like Nio, Li Auto, and Xpeng inching closer to Tesla‘s premium EV dominance. But Luxeed’s S7 could be the wildcard entry that disrupts the status quo, leveraging its dual parentage to offer something that is both technically advanced and locally grounded. Only time will tell if the consumer base accepts this in the future.

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