Asian Tech Press (Jan 12) -- U.S.-blacklisted Huawei Technologies Co. will challenge its goal of selling 300,000 smart cars in 2022, a Huawei executive said via video link.
Richard Yu Chengdong, CEO of Huawei Consumer Business Group and CEO of Intelligent Automotive Solution Business Unit (IAS BU), spoked via video link with the media at Huawei's Shenzhen headquarters at 2:30 p.m. local time Sunday.
This is the first time since Yu was appointed CEO of Intelligencet Automotive Solution BU at the Chinese tech giant last year that he faced the media.
"Our goal is to make our partners who work deeply with Huawei the best car companies in China in terms of profitability," Yu repeatedly stressed in the online meeting.
Last December, Yu released in a high profile AITO Wenjie M5, the first high-tech luxury smart electric SUV under the high-end AITO brand that Huawei has deeply empowered, and Huawei also went from behind the scenes to the front of the stage for the first time.
Yu strongly backed the new model of cooperation with California-based electric vehicle maker Seres, "Huawei and Seres are in a very deep cooperation, and Seres is responsible for the complete vehicle development and manufacturing as well as industrial production of the AITO Wenjie M5."
"Huawei does not make cars, its role is to help and promote, providing empowerment in product styling, interior and exterior design and brand marketing," he added.
As planned, since January 20, 2022, AITO Wenjie M5 will be available in 118 cities in China and 500 Huawei stores for test drives and reservations, and in February this year, the company will kick off deliveries of Wenjie M5 gradually. In addition, the pure electric version of the M5 will be launched in the fall, and the second vehicle of the AITO brand, a medium-sized luxury SUV, will be officially released at that time.
With Wenjie M5's range-extended version and all-electric version as well as the three models of medium and large SUV released during the year, relying on Huawei's power retail channels, Yu said, "We plan to use a thousand stores to sell cars by the end of this year, assuming that each store can sell 30 units per month, and monthly sales will be able to reach 30,000 units. This year Huawei will challenge the sales target of 300,000 units, so that the sales of automaker partners reach 100 billion yuan ($15.7 bullion) a year."
In fact, this is the second time Yu revealed this goal to the public, just as AITO Wenjie M5 was newly released and Seres SF5 electric vehicle was caught in rumors of discontinuation. The first time was in May 2021, as sales of Seres SF5 rose, when it was reported that Yu had set a target of selling 300,000 cars next year inside the company.
The IAS BU head also said that currently Huawei's brand marketing capabilities, channel retail capabilities, product competitiveness can support the sales target of 300,000 units, but taking into account that the product has just tepped up, there are huge risks in the supply chain, industry shortages are serious and other problems should not be underestimated, the 300,000-unit target is still not a small challenge.
From producing and manufacturing components for smart cars, to joining hands with BAIC, Chang'an Automobile, and GAC Group to create a new business model Huawei inside (HI), to using its own channels to sell cars, Huawei has gradually deepened its layout in the automotive field.
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