Huawei Announces Another Two EVs Under Carmaking Alliance for This Year

Huawei Technologies Co. Ltd.'s consumer and auto business units are set to introduce two new pure electric vehicles (EVs) developed in collaboration with their automotive partners. The first model, the Stelato S9 luxury sedan, which is a product of collaboration with BAIC BluePark New Energy Technology Co. Ltd., will premiere in the first half of August [para. 1][para. 2]. The Stelato S9 is positioned to compete with high-end models such as the Mercedes-Benz S-class and BMW 7 Series, with a pre-sale price range of 450,000 to 550,000 yuan (approximately $62,000 to $75,800) [para. 2][para. 3]. Another model, the Luxeed R7 SUV, developed in partnership with Chery Automobile Co. Ltd., is slated for release in September, with pre-sale prices ranging from 300,000 to 400,000 yuan. Additionally, a range-extended hybrid version of the R7 is expected to launch either late this year or early next year [para. 4][para. 5].

Both BAIC BluePark and Chery are part of Huawei's Harmony Intelligent Mobility Alliance. Apart from the Luxeed R7, Huawei has already brought three EV models to the market through its partnership with Seres Group Co. Ltd., including the Aito M5 compact crossover and the M7 and M9 SUVs [para. 5][para. 6]. Furthermore, Anhui Jianghuai Automobile Group Corp. Ltd. is another recent entrant into Huawei's car-making alliance, with plans to launch a luxury vehicle by year-end [para. 7].

Between the beginning of the year and June 9, the cumulative sales of all models under Huawei’s automaking alliance reached 159,100 units, the highest among China’s EV startups. Huawei's EVs this year are targeting the high-end segment, with an average price of 390,000 yuan. Models priced below 300,000 yuan would generally be unprofitable for Huawei and its partners due to limited control over supply chains and mass production capabilities [para. 8][para. 9]. Challenges have arisen, as earlier this year Huawei and Chery struggled to fulfill deliveries for the Luxeed S7, resulting in Huawei offering cash compensations to customers [para. 9].

At the China Auto Bluebook Forum, Huawei's carmaking unit CEO, Jin Yuzhi, urged regulators to expedite the approval of L3-level autonomous driving technology, which allows conditional self-driving capabilities. He emphasized that the technology is mature for certain driving scenarios, such as highways. Autonomous driving in China is categorized into six levels, with L3 and above considered autonomous, as opposed to levels below, which are termed as assisted or intelligent driving [para. 10][para. 11][para. 12].

The aim is to generate new growth points for Huawei, with the hope that consumers will pay extra for autonomous driving features. However, one expert from an autonomous driving technology company highlighted that the current user experience is insufficient to convince most consumers to spend on these intelligent driving features [para. 13]. Huawei collaborates with automakers not only under the Harmony Intelligent Mobility Alliance but also under the “Huawei Inside” (HI) model. Under this model, automakers use Huawei’s smart car systems. BAIC BluePark was previously an HI partner, and other HI partners include Chongqing Changan Automobile’s Avatr marque and Guangzhou Automobile Group Co. Ltd.’s Aion [para. 14].

In November, Chinese regulators released guidelines for a pilot program aimed at advancing self-driving technology commercialization. This permits "intelligent connected vehicles" to operate in designated areas on a trial basis. Recently, four ministries chose nine car manufacturers, including BYD Co. Ltd., Nio Inc., and SAIC Motor Co. Ltd., to test L3 autonomous driving capabilities in specific regions of cities like Beijing, Shanghai, Guangzhou, and Chongqing [para. 15][para. 16].