Source: Securities Times
Author: Li Dan

On November 15, Yu Chengdong of Huawei stated on Weibo that the Wenjie M5 “Urban Renewal Kit” will be officially unveiled at the Guangzhou Auto Show. At the same time, the new M7, the soon-to-be-released “King of Technology Cars”, and the Zhijie S7, which redefines smart cars, will also be showcased at the Auto Show.

According to information, the Guangzhou International Automobile Exhibition was founded in 2003 and is co-hosted by the China Foreign Trade Center, the China Machinery Industry Federation, the Automobile Industry Branch of the China Council for the Promotion of International Trade, and the China Association of Automobile Manufacturers. This year is the 21st edition, and it will be held at the Canton Fair Complex from November 17 to 26.

Yu Chengdong: Four major models will be unveiled at the Guangzhou Auto Show

On November 15, Yu Chengdong of Huawei said on Weibo that the Wenjie M5 has delivered a total of 120,000 units and is loved by consumers. The Qinjie M5 brings a new “urban renewal package”. The intense and energetic “Dawn Yellow” on a large area of the body fully highlights the powerful performance of the M5. This special M5 will be unveiled in Hall 19.2 of the Guangzhou Auto Show and will also participate in a series of performance challenges, so stay tuned! Our popular Ingye M7, the soon-to-be-released “King of Technology Cars” Engye M9, and the Zhijie S7, which redefines smart cars, will also be showcased at the Auto Show.

On the evening of November 9, at the launch of the Huawei Smart Mobility Solution and the Zhijie S7 pre-sale conference, Huawei and Chery Automobile jointly unveiled the first smart electric vehicle, the Zhijie S7, in cooperation between the two sides. This car is also the first sedan in the Huawei Smart Car Model. The pre-sale price starts at 258,000 yuan and will be officially announced on November 28.

According to Yu Chengdong, in terms of performance, the Zhijie S7 achieved acceleration of 3.3 seconds to 100 kilometers, and the CLTC comprehensive range exceeded 800 km, while$Tesla (TSLA.US)$The Model S dual-motor version has a battery life of 715 km, and the Model 3 long battery life version is 713 km. Judging from the power saving capability, the Zhijie S700 km comprehensive operating conditions consume 12.4 kWh, the new Model 3 rear-drive version is 13.2 kWh, and the Model S dual motor version is 17.5 kWh.

Yu Chengdong said that buying the Zhijie S7 “is equivalent to buying a higher-spec and more intelligent luxury car than the Model S at the price of buying a Model 3.” He also said that he had an argument with his colleagues about the price issue before the press conference. After many rounds of cost estimation, this kind of “aggressive price” had “all lost money” in all four versions. In the future, we will use scale effects to reduce costs through the expansion of delivery volume.

At the above press conference, Yu Chengdong also announced that the total number of reservations for the new Wenjie M7 series in 50 days has reached 86,000, and the number of pre-orders for the Wenjie M9, which has not been officially listed, has already exceeded 25,000.

According to Yu Chengdong, there are currently four partners in the Huawei Auto Smart Car Model, except$Chongqing Sokon Industry Group Stock (601127.SH)$, and Chery, JAC,$BAIC MOTOR (01958.HK)$。 Among them, Huawei and Celis have jointly built the AITO brand, which currently includes the M5, M7, and the upcoming M9, covering new energy SUV models; the collaboration between Huawei and Chery targets pure electric coupes and SUVs; Huawei and$BAIC BluePark New Energy Technology (600733.SH)$What will be launched is a high-end smart pure electric sedan in a segmented field, while Huawei and$Anhui Jianghuai Automobile Group Corp.,Ltd. (600418.SH)$The cooperative development is likely to be a larger new energy MPV model.

In terms of performance, on October 27, Huawei announced its operating results for the first three quarters of 2023, achieving sales revenue of 456.6 billion yuan, an increase of 2.4% over the previous year, a net profit margin of 16%, and calculated net profit of about 73,056 billion yuan, which is more than double the net profit for the full year of last year. The strong return of the Huawei Mate 60 series and the popularity of the new M7 in the industry this year have given a “double whammy” to Huawei's terminal business and smart car business, driving the recovery of Huawei's performance.

According to the 2022 financial report of Huawei, since the establishment of the smart car solution BU, Huawei has invested a total of 3 billion US dollars (approximately RMB 21,953 billion), and the R&D team has reached 7,000 people. In 2022, Huawei's smart car solutions business achieved revenue of only 2,077 billion yuan, accounting for only 0.3% of Huawei's total revenue for that year. With the popularity of Wen Jie's new M7 and Wen Jie M9 products, Huawei's smart car solutions business may go one step further from “getting back to the bottom of the budget.”

editor/tolk