At 2:30 pm last Sunday, Yu Chengdong, Executive Director, CEO of the Consumer Business Group, and CEO of Huawei’s Intelligent Automotive Solution Business Unit, spoke with media at Huawei’s Shenzhen headquarters.
Yu Chengdong revealed that, “The cooperation between Huawei and SERES is very deep. SERES is responsible for the R&D, manufacturing and production of the AITO M5. Huawei does not build cars. Huawei’s role is to help with product modeling, design and brand marketing.”
He also stressed that, “Huawei provides assistance to car companies that cooperate with us in depth to help them become the most profitable and commercially successful brands.”
Why does Huawei sell cars?
When asked why Huawei wants to sell cars in its stores, Yu Chengdong pointed out three reasons:
On the one hand, after Huawei was sanctioned by the US, the lack of 5G chips has severely affected the shipments of its high-end smartphones. Selling vehicles can help Huawei salvage its retail stores and help retailers make money.
On the other hand, the retail system has formed a network centered on shopping malls and online stores. If a new car company wants to build a retail system, the rental cost and labor cost will be very expensive. With Huawei’s mature retail system and service network, car companies can save a lot of money. This will also drive the large-scale sales of auto parts to achieve a win-win situation for the whole industry.
Finally, helping car companies to succeed will also make Huawei’s smart travel ecosystem grow rapidly and enhance the user experience of other terminal products. “The HarmonyOS smart console, for example, can connect with smartphones and cars. This is a huge advantage of Huawei’s ecosystem.”
300,000-unit sales target for 2022
With the AITO M5 and the medium and large SUV to be released later this year, Yu Chengdong said, “We plan to deploy 1,000 stores to sell automobiles by the end of this year. Assuming that each store can sell 30 units per month, the monthly sales volume could reach 30,000 units. This year, Huawei will challenge the sales target of 300,000 units so that the annual sales volume of cooperating car companies will reach 100 billion yuan. Our goal is to turn our long-standing partners into the most profitable car companies in China. “
In addition, Yu Chengdong added that Huawei’s brand marketing capability, retail channels and product competitiveness can help to reach the annual sales target of 300,000 units. However, given that the new products have just been listed, in addition to the huge risks in the supply chain and a serious overall shortage in the industry, there are still many challenges lying in front of Huawei’s 300,000-unit target.