On the evening of November 9th, Huawei broke the news again, and officially released Huawei’s smart travel solution, and announced that the first smart electric vehicle Zhijie S7 jointly built by Huawei and Chery Automobile officially opened for pre-sale, in which Huawei’s smart travel solution is a strategic upgrade of Huawei’s smart car selection mode. Zhijie S7 is the first car in Huawei’s smart car selection mode, and it is equipped with HarmonyOS4 HarmonyOS system and ADS2.0 high-level intelligent driving system for the first time. The pre-sale price starts at 258,000 yuan and will be officially released on November 28th.
"With the release of the intelligent S7, we have to redefine the new form, new space, new performance and new wisdom of smart cars." Yu Chengdong, chairman of BU, Huawei’s smart car solution, said at the scene.
Interestingly, regarding the price of Zhijie S7, Yu Chengdong said: "We discussed the price repeatedly internally, and finally found that we all lost money in the pricing of the four versions of this car. We can only expect the heavy shipment of this car in the later period to make up for the loss."
Smart car selection mode is upgraded to smart travel solution.
A few years ago, Huawei’s terminal business put forward a "1+8+N" smart life development strategy, in which 1 refers to mobile phones, 8 refers to 8 kinds of smart terminals such as tablets and PCs, and N refers to IOT devices.
On the evening of November 9th, Yu Chengdong reiterated that "1+8+N" smart life is Huawei’s long-term development strategy, and Huawei will stick to this strategy in the next decade. At the same time, Yu Chengdong recently announced that Huawei has officially released a smart travel solution.
Yu Chengdong said that Huawei’s smart travel solution is a strategic upgrade of Huawei’s smart car selection model. It aims to make use of Huawei’s incremental parts products and technical solutions for smart cars in the ICT field over the past 30 years and Huawei’s excellent experience in quality control, sales service and brand marketing accumulated in consumer business over the past 10 years to deeply empower partners and create a new era of smart cars.
It is understood that Huawei Smart Travel has deep technology accumulation in digital platform, full-scene interconnection, intelligent driving, intelligent vehicle control and all-dimensional security. Among them, Huawei iDVP digital platform can be regarded as the "black land" to realize software-defined cars and the "nerve center" of smart car products. Huawei’s self-developed three operating systems, such as intelligent cockpit, intelligent driving and intelligent vehicle control, make smart cars have a smart brain and make them smarter and smarter.
"Huawei should take the core technologies such as intelligent driving, intelligent cockpit and intelligent driving control to the root, continue to lead the strongest technological innovation of smart cars, and promote the intelligent development of the automobile industry; It is even more necessary to smash the experience and provide users with the ultimate smart travel experience with good technology and good products! " Yu Chengdong said that Huawei Smart Travel will empower partners with Huawei’s integrated product development and integrated product marketing service system, build the most advanced process management system in the industry, and greatly improve product development efficiency.
Zhijie S7 opens pre-sale.
It is understood that there are three modes of cooperation between Huawei and car companies: parts mode, HI mode and intelligent car selection mode. Among them, intelligent car selection mode is a relatively rapid and mature mode for Huawei to land in the automobile business at present. It is led by Huawei Terminal Business Group, and Huawei leads product definition research and development, and vehicles are sold in terminal channels. Wenjie is the first brand launched by Huawei Intelligent Car Selection mode, which was jointly launched by Huawei and Chongqing Xiaokang Group Celes, and has already launched M5 and M7 models.
At the press conference, Yu Chengdong revealed that there are currently four automobile partners in Huawei’s smart car selection model, namely Celeste, Chery, BAIC and JAC. Up to now, the cumulative delivery of the M5 has exceeded 120,000, the M7 has broken 87,000, and the booking volume of the M9 has exceeded 30,000. "We are making every effort to increase production capacity. I hope you will wait patiently, because the order volume is indeed much larger than previously expected."
In addition, with the appearance of Zhijie S7, the second brand "Zhijie" launched by Huawei Intelligent Car Selection Model was born.
According to reports, at present, Zhijie S7 has officially opened the pre-sale, with a total of four models, with a pre-sale price of 258,000 yuan. Zhijie S7 is the first car in Huawei’s smart car selection business. It was jointly built by Huawei and Chery, and produced on a brand-new platform built by Huawei’s full-stack smart car solution. It was first equipped with Huawei’s Turing smart chassis and HarmonyOS 4 smart cockpit, and Huawei’s ADS 2.0 advanced intelligent driving assistance system, with a 3D car control desktop. In addition, the smart voice assistant Xiaoyi was connected to the Pangu model, which will be officially released on November 28th.
Yu Chengdong said that Huawei’s ADS 2.0 advanced intelligent driving system has the leading perception ability, obstacle recognition and processing ability, advanced intelligent driving and intelligent parking ability, and will take the lead in realizing the intelligent driving experience that is independent of high-precision maps and can be driven all over the country at the end of the year, and the leading functions such as "intelligent summoning and parking" can help accelerate the popularization of intelligent driving.
Yu Chengdong: All four versions are losing money.
Interestingly, Yu Chengdong said, "We are all losing money in pricing the four versions of Zhijie S7, and we can only expect the heavy shipment of this car in the later period to make up for the loss."
Previously, in July last year, Yu Chengdong said frankly: "The automobile business is a money-burning business. Huawei invests more than one billion dollars in research and development every year, and it is currently the only loss-making business of Huawei." At Huawei’s internal meeting on December 8 last year, Yu Chengdong even said that Car BU is a project that Huawei has been burning money, and it will be profitable in 2025.
In the 2022 annual report, Huawei disclosed the revenue of smart car business for the first time. In the whole year, the revenue of smart car solution business was 2.077 billion yuan. In the first half of this year, the revenue of Huawei’s smart car solution business was 1 billion yuan.
In this regard, Huawei said that since the establishment of the smart car solution BU, the accumulated investment has reached 3 billion US dollars, and the R&D team has reached the scale of 7,000 people. The smart car solution business is Huawei’s long-term strategic opportunity.
As for the supply chain, it is understood that Luxshare, a A-share listed company, has been involved in Chery’s new car industry chain, and is one of the suppliers of smart car models cooperated by Chery and Huawei. In addition, Songyuan also has projects in the smart electric car models cooperated by Huawei and Chery. In addition, Junsheng Electronics has also entered Huawei’s automobile supply chain.
Proofreading: Gao Yuan