Huawei has started its teasing game for the first model under the electric vehicle brand “Shangjie” with Chinese automaker SAIC, on Monday publishing preview images of a sporty crossover that will compete for customers in the country’s very competitive mid-range car space.
Why it matters: The H5, Huawei and SAIC’s first Shangjie EV with an expected price range of RMB 170,000 to RMB 250,000 ($23,698 to $34,850), will help Huawei and its partner expand the large, lower-price segment of the EV market, where BYD, Geely, and Leapmotor have already established leadership positions.
- Both Huawei and SAIC, China’s biggest manufacturer of gas-powered vehicles, expect the Shangjie H5 to be a hit, especially among the large pool of young Chinese customers. SAIC has been struggling with declining sales and sliding profits since consumers have begun transitioning to smart, electric cars.
- Huawei has primarily focused on the upper-end EV segment, where it already sees slowing demand, with its brand portfolio under the so-called “Harmony Intelligent Mobility Alliance (HIMA),” co-developed with four Chinese state-owned automakers including Chery, JAC, and BAIC.
- It may also attract customers away from higher-priced competitors such as the Tesla Model Y and Audi Q5L.
Details: The first few shots, published by the companies on the Chinese microblogging platform Weibo, show some interesting details about the H5 sports utility vehicle, such as a lidar sensor mounted on the car’s roof and a camera perched on the side of the vehicle body.
- That means at least the top-end version will come with innovative tech features such as advanced driver assistance systems, as commented on by Huawei’s consumer business chairman Richard Yu on Weibo. The 4.0 version of Huawei’s Advanced Driving System will be accessible on the H5, according to Liu.
- The sleek, less bulky SUV features a coupe-style body shape. Yet, as a crossover, it is said to be practical and comfortable, providing an open, roomy experience for rear-seat passengers with its long wheelbase, according to Sun Shaojun, founder of consumer behavior research agency CarFans.
- The car is scheduled for release this autumn.
Context: The Huawei-SAIC partnership has symbolized the growing significance of Huawei as an auto parts and software maker in the industry. SAIC made a U-turn after former chairman Chen Hong, who retired last July, said at the company’s shareholder meeting in mid-2021 that a car with all-in-one tech features from a sole supplier like Huawei was equivalent to a body without a soul, reported Caixin.
- The companies first announced their partnership in February to develop new “globally competitive” smart EVs, TechNode reported, and said in April that a dedicated plant will be established in Shanghai’s Lingang area, where Tesla’s factory is located. SAIC’s new chairman Jia Jianxu said the automaker will invest RMB 6 billion in the project in the initial stage.
- SAIC reported an 88.2% plunge in net profit as well as a 15.4% decline in revenue last year, mainly due to the poor performance of partners Volkswagen and General Motors. It was dethroned as China’s biggest carmaker last year after nearly two decades at the top, with BYD overtaking the state-owned automaker with shipments of EVs rising 41% to nearly 4.3 million units.
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