On March 16th, reports from domestic media indicate that Yu Chengdong delivered a speech at today's China Electric Vehicle Summit, where he openly stated that Huawei's solutions are cost-prohibitive, making only cars priced above 300,000 RMB feasible for consumers.
Discussing the collaboration with Seres, Yu Chengdong mentioned that the M7 has set a historic record for 300,000 RMB cars in China.
"In the first month after its release, it sold 60,000 units, far exceeding our expectations. Together, we've crafted the M9, with an average price of over 500,000 RMB. So far, we've sold nearly 60,000 units. In the first few days of the first month, we sold 30,000 units, quickly surpassing 40,000, 50,000, and now almost 60,000 units. By the end of December, it was only on the market for a short time, yet it has still set a record for high-end car sales," Yu Chengdong remarked.
Yu Chengdong also admitted that due to factors like supply chain issues and sanctions, Huawei's solutions are cost-prohibitive. It's a bit challenging for cars priced below 300,000 RMB to utilize our solutions. Only cars priced above this threshold can be profitable. However, selling cars priced above 300,000 RMB requires brand support to make it viable and successful.
According to Yu Chengdong, after assisting car manufacturers in selling mid-to-high-end products, Huawei's Car Business Unit (BU) aims to achieve a commercial closed loop, generating good revenue and profits to support the transition from losses to profits.
Yu Chengdong emphasized Huawei's wholehearted support for Chinese car companies in their transition and upgrade toward intelligence, electrification, and connectivity, ultimately achieving commercial success.
Following Yu Chengdong's statements, Deep Blue Auto, a subsidiary of Chang'an Automobile, will adopt the Huawei Inside (HI) model. Similarly, Lantu Auto and Mengshi Technology under Dongfeng Automobile will also engage in similar collaborations.
It's understood that Huawei's involvement in the automotive industry follows three models: component mode, HI mode, and smart selection car mode. Among them, Deep Blue Auto under Chang'an Automobile adopts the HI model. In January and February this year, Huawei's Car BU announced collaborations with Lantu Auto and Mengshi Technology, making them new members of the HI model.
