Huawei finally made a car？ A-share company releases high-end HarmonyOS eco-vehicle： enter the first echelon within 5 years？
On December 2,(601127.SH)’ s Jin Kang Sailis released a brand-new high-end brand AITO, the first medium-sized one, which is deeply empowered by Huawei.The SUV will be released on December 23rd, and it will be the first vehicle equipped with Huawei’s latest HarmonyOS OS cockpit.Xu Lin, president of Sailis (rotating), said that Sailis’s goal is to enter the first echelon within five years and become the brand of TOP3, a global new energy vehicle.
Affected by this news, the stock price rose sharply in the afternoon, closing at 7.023 yuan/share, up more than 4%, with a total market value of 95.508 billion yuan. It is worth mentioning that, with the blessing of Huawei concept, its share price soared from 17 yuan/share at the beginning of the year to 80 yuan/share at one time.
The first model will be equipped with Huawei HarmonyOS smart cockpit.
According to the plan, in addition to the above-mentioned medium-sized SUV, AITO has also planned three new models, namely, medium-sized pure electric SUV and medium-sized luxury SUV. It is understood that the second model, medium-sized luxury SUV, will be released next year. In addition, Cyrus plans to build more than 1,000 flagship stores and experience centers with Huawei next year.
It is worth mentioning that Huawei has high hopes for the first model of AITO. Yu Chengdong, CEO of Huawei’s consumer business and CEO of BU, a smart car solution, said in a video connection, "Huawei has helped AITO build a medium-sized luxury SUV with its core technologies accumulated in the fields of communication and ICT for more than 30 years." He said that HarmonyOS will get on the bus at the end of this year and early next year.
At the press conference, Cyrus didn’t disclose much information about the first model, but according to the information declared by the Ministry of Industry and Information Technology, the first model of AITO was named Wenjie M5, which was designed with a program hybrid, four-wheel drive and a 1.5T engine, and the maximum cruising range could reach 1,000km.
For AITO and Cyrus, despite Huawei’s deep empowerment, it is not easy to achieve its declared "entering the first echelon within five years and becoming the brand of the global new energy vehicle TOP3".
During this year’s Shanghai Auto Show, the Cyrus S jointly built by Huawei and Cyrus.Listed, the two-wheel drive version and the four-wheel drive version were launched, and the price was 216,800 yuan and 246,800 yuan respectively. The four-wheel drive version was sold in Huawei’s flagship store and was also the first car sold by Huawei. Since the sale, the official said that it has exceeded 3,000 orders in two days, and the order volume in one week has exceeded 6,000.
However, Seles S is not a good seller, and the market performance is not satisfactory. According to the data of the Federation, from April to October this year, the sales volume of Sailis S was 129, 204, 1,097, 507, 715, 1,117 and 1,926 respectively, totaling 5,965.
During the same period, the new forces of making cars includedThe delivery volume of, Ideality, Tucki and Nezha keeps rising. In the past November, the monthly delivery of, Tucki, Ideality and Nezha all exceeded 10,000, and the cumulative sales volume of second-tier new car manufacturers such as Weimar and Lingpao reached about 40,000 in the first 11 months of this year. Traditional car companies also collectively counterattacked, Volkswagen ID. Family, Guangzhou Automobile Ai ‘an and other monthly sales have been among the 10,000 clubs for several consecutive months.
In the face of increasingly fierce competition in the new energy market, the competitiveness of AITO as a new brand still needs time and market verification. It is worth mentioning that it was previously reported that the cooperation mode adopted by AITO was different from the previous Inside mode in which Huawei only served as a supplier. The pre-planning, product design and post-marketing of the M5 were all led by Huawei. However, this news has not been verified at present.
Huawei’s car adventure
The re-launch of high-end brands in cooperation with Cyrus once again highlights Huawei’s ambition of "building cars". Although it has declared eight times that it will not build cars, Huawei has not stopped its expansion and layout in the automotive field.
On November 29th, Huawei won the bid for 260,000 square meters of industrial land in Songshan Lake, Dongguan for 188 million yuan. The industrial type is smart car parts manufacturing, and the total investment of this project will not be less than 2.4 billion yuan. Earlier in October, Huawei won an industrial land in Fucheng Street, Longhua District, Shenzhen with a reserve price of 298 million yuan. The access industry categories were new generation information technology industry and new energy industry.
For Huawei, the original three supporting business operators BG, enterprise BG and consumer BG are mature, the growth ceiling of smart phones is within reach, and the problems of homogenization and price war are one after another. As the next most promising intelligent terminal equipment, automobiles have become an important starting point for Huawei to seek diversified development and open up new growth points. Especially after Huawei stripped off its glory and the sales of mobile phone business declined, Huawei’s determination to go deep into the hinterland of smart cars became more firm.
"In just two years, Huawei has encountered four sanctions from the United States, and each time it is more dangerous, it has also greatly affected Huawei’s mobile phone business." Yu Chengdong has publicly stated that the mobile phone is a high-end perceived product with high frequency, just-needed, massive and high value. However, in recent years, the sales volume of the mobile phone business has been short of supply due to US sanctions.The only thing that can make up for this lack of business is smart electric vehicles."Although the sales of cars are not as big as those of mobile phones, the value of their single products is very high."
Huawei’s financial report for the third quarter of 2021 shows that the company achieved sales revenue of 455.8 billion yuan in the first three quarters, a decrease of 215.5 billion yuan compared with 671.3 billion yuan in the same period last year. This is the fourth consecutive quarter that Huawei’s revenue has declined.
Focusing on the automobile field, Huawei Automobile Bureau has gradually deepened-from manufacturing parts of smart cars, to jointly building a new business model of HUAWEI inside with BAIC, Changan and Guangzhou Automobile, and then using its own channels to sell cars. At present, Huawei’s smart car business is mainly in two ways. In more cases, Huawei adopts the traditional Tier1 and Tier2 parts supply mode, and the other is the Huawei inside mode which is deeply tied with car companies.
Wang Jun said in an interview with a reporter from 21st century business herald that the essence of Huawei’s inside model is that from the time of vehicle definition, joint design and joint development, the two teams are integrated, and joint design and joint development must at least use Huawei’s full-stack autopilot solution to be called HI. "Using this model, we can give full play to the advantages of both parties. Huawei parts are all used, and the car factory has the definition, modeling and manufacturing ability of the whole car. The two sides can truly build a good car by combining with each other."
Although Huawei has repeatedly stated that it will never build a complete vehicle, from the perspective of business layout,In addition to vehicle design and development, Huawei is getting closer and closer to building a car.In the current and future when the competition for smart cars is becoming increasingly fierce, where Huawei’s car will end up is full of imagination.