On March 17th, at the China EV100 Forum (2024), Yu Chengdong, Huawei's Executive Director, CEO of the Consumer BG, and Chairman of the Smart Car Solution BU, revealed that Huawei's automotive BU experienced a loss of 10 billion CNY two years ago, which was reduced to 8 billion, and last year the loss was narrowed down to 6 billion CNY.
Thanks to our partners who have been successfully selling mid-to-high-end car models, we are set to achieve our goal of turning loss into profit this year.
Yu Chengdong also shared that Huawei's selected car business has already managed to turn its losses around in the first three months of this year. The automotive BU is on the brink of breaking even and is expected to start turning a profit from April onwards, marking a positive and healthy development trajectory.
Discussing the collaboration with Seres, Yu Chengdong highlighted the M7, which set a new sales record for cars priced around 300,000 CNY in China.
"The first month on the market, it sold 60,000 units, far exceeding our expectations. The M9, a model we co-developed that's priced at over 500,000 CNY on average, has sold nearly 60,000 units to date. In just the first few days of its first month, it sold 30,000 units, quickly surpassing 40,000 and then 50,000 units, now nearing 60,000 units. Having launched at the end of December, it has indeed set a record for high-end vehicle sales," said Yu Chengdong.
Yu also openly admitted that due to supply chain issues and sanctions, Huawei's solution costs are relatively high. Cars priced below 300,000 CNY pose a challenge for us, as our solutions are more feasible for cars priced above 300,000 CNY, which can then be profitable. However, cars above this price point require strong brand support to achieve good sales.
