On May 21, Tencent Auto's official WeChat released an exclusive video conversation with Yu Chengdong, executive director of Huawei, Chairman of Terminal BG, and Chairman of Huawei Smart Vehicle Solutions BU, which mentioned the new model cooperation between Huawei and JAC.
The price of the JAC and Huawei partnership models is likely to exceed 1 million, positioning them as “more luxurious, more high-end, and more comfortable”.
In December 2023, JAC announced that it signed a “Smart New Energy Vehicle Cooperation Agreement” with Huawei terminals, combining JAC's successful experience in building high-end products and sales networks in the field of advanced automobile manufacturing and establishing sales networks covering the world, brand marketing, and user operations, to jointly promote the iterative upgrading of luxury intelligent connected electric vehicles through strong alliances and complementary advantages. In April 2024, JAC revealed that it signed a strategic cooperation agreement with Huawei Digital Energy to carry out comprehensive and in-depth strategic cooperation on various aspects such as vehicle, engine, and charger trinity for new energy vehicles and the development and application of NEV models/platforms, the application and development and manufacture of intelligent electric components, and the internationalization of new energy vehicles. In May 2024, Yu Chengdong, executive director of Huawei and chairman of Huawei Smart Car Solution BU, mentioned in an exclusive conversation with Tencent Auto that the new model cooperated by JAC and Huawei may sell for more than 1 million, positioning it as “more luxurious, more high-end, and more comfortable”, targeting millions of models that surpass traditional top international luxury car brands, such as Maybach and Rolls-Royce Phantom models.
The Huawei BU has entered the harvest period. Since Huawei announced its entry into car construction, it has cooperated with Cyrus, Chery, JAC, and BAIC car companies to successfully launch brands such as “Inquire”, “Inquire”, and “Enjoy” the automobile industry; “Inquire about the “full range of SUVs” and “explore” the automotive industry; “Inquire and explore” the automotive industry; and “Intelligent World” cars and SUVs have positioned the middle and high-end markets with differentiated boundaries to meet the needs of different user groups; “Enjoy the world” has positioned two groups of executive users and businesses. Use. Among them, in an interview with Tencent Auto's “High Light,” Yu Chengdong said that sales were good. Smart Select BU and Car BU fully turned losses into profits in the first quarter, speeding up Huawei's car construction into a harvest period.
Investment advice: At present, Huawei's smart car selection business has gradually entered a healthy path. Cyrus has already achieved profits in the first quarter of this year, and the company's cooperative models are positioned at the million-level category. There are few competing models in this range, and the profit level is high. It is expected to push the company's passenger car business to a new level and maintain an “increase” investment rating.
Risk warning: 1) New model development progress falls short of expectations; 2) Demand for new models falls short of expectations.