Home » Huawei fully dominates the industry?Netizens with the chrysanthemum logo on the poster: It’s justifiable and justifiable.

Huawei fully dominates the industry?Netizens with the chrysanthemum logo on the poster: It’s justifiable and justifiable.

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Huawei fully dominates the industry?Netizens with the chrysanthemum logo on the poster: It’s justifiable and justifiable.

Huawei fully dominates the industry?Netizens with a chrysanthemum logo on the poster: It’s justifiable

In the future, if you buy a car from Wenjie, you can finally justify the Huawei logo.

The poster released by Wenjie Auto’s official Weibo shows that the LOGO in the upper right corner has been changed from the original “AITO” to “HUAWEI”.

This move has also aroused speculation about Huawei’s car manufacturing, and a screenshot circulated on the Internet shows that Huawei has reached an agreement with the top executives of Celes. It is “Huawei fully dominates”.

It was the exposure of this screenshot that made the topic of #HUAWEI免费卫通问界# rushed into the hot search.

Huawei fully dominates the industry?Netizens with a chrysanthemum logo on the poster: It’s justifiable

Huawei responded, saying that this move only highlights Huawei’s long-term deep empowerment of AITO global brands, and the long-term in-depth cooperation between Huawei and Cyrus has not changed.

This also seems to acquiesce that Huawei is increasing its right to speak to global brands.

Not long ago, Huawei’s car BU has undergone personnel adjustments. Wang Jun, chief operating officer of Huawei’s car BU and president of the intelligent driving solution product line, was exposed to suspension. This series of actions shows that Huawei’s auto business will be at full capacity next.

Strengthen the brand label

In fact, whether the propaganda language has changed is not important to Wenjie Automobile, because Huawei’s label has been imprinted in the brand’s genes since the beginning.

“Although we have also seen this news, we have not received an internal notice, so it is difficult to say more.” In the eyes of a salesman of Wenjie Automobile, regardless of whether the news is true or not, Huawei’s role is very important from the production line to the final sales, and Huawei’s empowerment is also the focus of external publicity.

Huawei fully dominates the industry?Netizens with a chrysanthemum logo on the poster: It’s justifiable

It is worth mentioning that when we received a feedback message from Wenjie Automobile, its owner was also marked with Huawei.

Huawei fully dominates the industry?Netizens with a chrysanthemum logo on the poster: It’s justifiable

Huawei’s system in the world can be seen everywhere, but another partner, Celes, has less and less presence.

In the beginning, with the joint endorsement of Huawei and Celes, Wenjie’s performance could be called a dark horse in the new car-making forces. After delivery began in March last year, it achieved monthly sales of over 10,000 in a few months. In just one month, the cumulative delivery volume exceeded 80,000.

Huawei fully dominates the industry?Netizens with a chrysanthemum logo on the poster: It’s justifiable

The reason why Wenjie can sell well is because of the blessing of the Huawei brand. After all, before this, Cyrus was still a very small new energy brand, and its popularity was far from that of Wei Xiaoli.

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There are three main ways for Huawei to cooperate with external car companies, the parts model, the HI model (Huawei Inside model) and the Huawei smart car model.

The parts supply mode is to provide platform support to auto OEMs, and provide them to OEMs through controllers such as Hongmeng Ecology and smart driving, and to be an incremental supplier of smart cars; development; Huawei’s smart selection ecological model is to use Huawei’s extensive sales network to help car companies sell good cars.

At present, Huawei has established cooperation with many car companies through the HI model, such as GAC Aian, BAIC Polar Fox, and Changan Avita. The Xilisi Wenjie Automobile, which cooperates with Xiaokang, adopts Huawei’s smart selection ecological model.

As more and more models are equipped with Hongmeng smart cockpit, many consumers realize that the status of Cyrus and Wenjie is no longer special.

Perhaps Huawei and Celes are also aware of this problem. Now, by changing some strategies, increasing the proportion of Huawei in the marketing vocabulary, further leveraging Huawei’s influence, and improving the brand value of Wenjie.

Therefore, Huawei’s response has virtually increased the brand empowerment of AITO, and also strengthened Huawei’s endorsement of the smart car model.

all for sales

In 2022, Wen has set a sales target of 80,000, and the final cumulative sales volume is 76,000, which is 95% of the target.

In fact, the new energy industry was turbulent last year. Raw material prices rose in March and production was halted due to the epidemic in April. Few car companies achieved their annual goals. In this situation, Wenjie’s performance is not bad.

Huawei fully dominates the industry?Netizens with a chrysanthemum logo on the poster: It’s justifiable

After entering 2023, Tesla took the lead in launching a wave of price cuts, and car companies had to start a price war. Even car companies that promised not to cut prices could not withstand the pressure and lowered the prices of their vehicles one after another.

On January 18, Wenjie adjusted the prices of some of its models, and the overall reduction ranged from 28,800 to 30,000 yuan. However, unlike Tesla, Wenjie’s price reduction has a certain “humanistic care”. In order to take care of the mood of old car owners, Wenjie provides the first car owner with a total value of 3.3-3.5 million rights and interests, including vehicle warranty, 12 10,000 AITO points, 2 years of basic maintenance.

Compared with the dissatisfaction caused by the price reduction models of auto companies such as Tesla, Jikrypton, and Xiaopeng, the online reviews of Wenjie’s price reductions are full of praise. But in reality, price reduction is also a last resort.

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In January 2023, Wenjie delivered only 4,475 vehicles, a sharp drop of 56% month-on-month. This sales volume was not only lower than that of Wei Xiaoli, but also overtaken by Nezha.

Huawei fully dominates the industry?Netizens with a chrysanthemum logo on the poster: It’s justifiable

On the evening of January 30, Cyrus released the 2022 annual performance pre-loss announcement. It is expected to achieve operating income of 33.5 billion to 35 billion yuan in 2022, an increase of 100.38% to 109.36% over the same period last year. It also increased year-on-year.

While the revenue is doubling, the loss of Cyrus is also increasing. In 2022, Cyrus is expected to achieve a net profit loss of 3.5 billion to 3.95 billion yuan attributable to the parent company, and the loss will increase by 91.90% to 116.57% year-on-year; deducting non-net profit The estimated loss is 3.85 billion yuan to 4.3 billion yuan, and the loss has expanded by 37.83% to 53.94% year-on-year.

The “Seres model” of cross-border cooperation with Huawei’s joint business has been verified and has achieved remarkable results, but as losses continue to expand, how to boost sales is also a problem.

Huawei fully dominates the industry?Netizens with a chrysanthemum logo on the poster: It’s justifiable

In addition, the sales volume of Wenjie was not good in the first year, and the purpose of Huawei’s increase in “appearance rate” is not only for sales. Recently, Yu Chengdong frequently appeared in Cyrus, and many netizens are also speculating whether they are preparing for the release of M9.

A number of spy photos of Wenjie’s new car M9 have been exposed before. It is expected to be a full-size large flagship SUV equipped with more new technologies such as intelligent assisted driving. As for this 500,000 RMB SUV, the direct rivals are Ideal L9 and Weilai ES8. It is not known whether the “higher-end, more luxurious” positioning will attract potential owners of Ideal Weilai.

Many new forces, such as Ideal and Xiaopeng, had a low sales period when they released new cars or updated their models. After Wenjie’s sales fell in half this time, Huawei’s operation may usher in the next peak.

Next up: Profit

In May 2019, Ren Zhengfei of Huawei issued a document on organizational changes, confirming the establishment of a BU department for smart car solutions, and officially sounded the clarion call to enter the automotive industry.

In this document, Huawei made a clear positioning for its role after entering the automotive industry: Huawei does not build cars, but focuses on ICT technology, helps companies build good cars, and becomes a provider of automotive incremental components.

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Huawei fully dominates the industry?Netizens with a chrysanthemum logo on the poster: It’s justifiable

It is worth noting that at the end of this document it is written that “this article takes effect from the date of publication and is valid for 3 years”.

At this time, there are still 8 months before the agreement not to build cars expires.

Combined with the previous rumors that Wang Jun was suspended, although Yu Chengdong explained this as a normal personnel change, it will not change Huawei’s development in the automotive business. But in this personnel adjustment, many people seem to think that Yu Chengdong wants to “monopolize the power”.

Huawei fully dominates the industry?Netizens with a chrysanthemum logo on the poster: It’s justifiable

Within Huawei, although Wang Jun and Yu Chengdong are both in the car BU, they are in charge of two different businesses. Wang Jun is in charge of the HI model. The first model under this cooperation model-Jihu Alpha S, this car will be released in 2021. It will debut in 2022, but deliveries won’t begin until July 2022. Sales after delivery were poor, and the cumulative sales of Jihu in 2022 will only be 11,895.

Because of this, the industry speculates that Wang Jun’s suspension is related to the failure of the Huawei Inside model he led.

In contrast, the smart selection model led by Yu Chengdong has been recognized by the market, while Huawei’s smart selection model is more inclined to “build a complete car”.

Coinciding with this critical time node, Huawei handed over the car BU to Yu Chengdong, a “car maker”, and the meaning behind it is hard not to let people think too much.

Huawei fully dominates the industry?Netizens with a chrysanthemum logo on the poster: It’s justifiable

According to “Later Auto”, at Huawei’s internal meeting on December 8 last year, Yu Chengdong stated that the car BU will achieve profitability in 2025.

Prior to this, Yu Chengdong said that the automobile was Huawei’s only loss-making business, and it spent more than one billion US dollars on research and development every year.

According to statistics, Huawei has directly invested 7,000 people in the car BU business, and indirectly invested more than 10,000 people. 70% of the R&D personnel are in the research and development of intelligent assisted driving, but the huge cost investment is not directly proportional to the income.

Although Che BU is still regarded by Ren Zhengfei as temporarily ignoring losses, as an enterprise, it cannot always do business that loses money.

Huawei is now the only business that does not make money, and it has to consider making profits next.

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