Richard Yu, CEO of Huawei’s Consumer Business Group (BG), introduced the Luxeed S7 (ZhiJie S7) electric sedan, signaling Huawei’s entry into the automotive sector. The event not only unveiled this groundbreaking vehicle but also hinted at a prospective partnership with FAW Group, a key manufacturing ally of Volkswagen and Toyota, potentially becoming the newest addition to Huawei’s burgeoning car alliance. This development sets the groundwork for Huawei’s dynamic venture into the electric vehicle (EV) market.

Strategic Collaboration and Cooperation Models

Huawei’s partnership with notable car manufacturers has taken the form of standardized parts supply models, the “Huawei Inside” (HI) model, and the Harmony Intelligent Mobility Alliance (HIMA). HIMA, representing the deepest level of cooperation, involves select vehicle partners as investment cooperation targets. Notably, current HIMA products include the “WenJie” (AITO) SUV co-developed with Seres and the “ZhiJie” (Luxeed) electric sedan co-developed with Chery. Future models, including two additional “Jie” from BAIC (“XiangJie”) and JAC (“AoJie”), underscore Huawei’s commitment to innovation and collaboration in the electric vehicle space.

Market Impact and Recent Partnerships

The Luxeed S7 launch event sparked a late-session rally in the automobile manufacturing sector. Chinese automobile manufacturing companies like FAW and FAWAY hit their maximum daily price increase, and BAIC BluePark came close to reaching its daily limit. JAC Motors and Seres followed an upward trend, reflecting the positive market reception of Huawei’s endeavors in the automotive industry.

A recent memorandum of investment cooperation signed between Changan Automobile and Huawei Technologies Co., Ltd. on November 25th further solidified Huawei’s presence in the electric vehicle sector. The agreement outlined plans to establish a joint company focusing on research, design, production, sales, and service of intelligent automotive systems and component solutions, with Changan Automobile intending to invest strategically in the venture.

Luxeed S7 Pricing and Features

The Luxeed S7, co-developed with Chery, is competitively priced at RMB 249,800 ($35000), positioning itself as a strong contender against Tesla’s Model S and Porsche’s Taycan 4S. Huawei’s pricing strategy, with the Luxeed S7 priced lower than the earlier revealed pre-sale starting price of RMB 258,000, reflects a commitment to market competitiveness.

The vehicle boasts Huawei’s advanced technologies, featuring 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 growing presence in the electric vehicle market is evident in its increasing monthly delivery targets. Record monthly deliveries of Aito-branded electric vehicles are expected to range between 16,000 and 18,000 in the current month, with projections to surpass 23,000 in December and further increase to over 30,000 in January. These ambitious targets underscore Huawei’s commitment to making a substantial impact in the rapidly evolving electric vehicle landscape.

Huawei’s Luxeed S7 launch, coupled with 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 leave a lasting impression on the automotive industry.

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