Recently, rumors circulated regarding Huawei’s automotive business and its intentions towards some of its current partners. The company was rumored to have split from Seres, its manufacturing partner, and was looking to build its own car factory for Huawei-branded electric cars. However, Huawei CEO, Richard Yu, took it upon himself to deny all the rumors and defend Huawei’s current business model and strategy.
Unlike its competitor, Xiaomi, Huawei has taken a more conservative approach to the car business. The company has a three-pronged approach, acting as an auto part manufacturer, providing its Huawei Inside software suite to automakers, and through its Smart Selection program, getting involved in vehicle development and sales. Huawei does not manufacture its own cars, and according to Yu, it has no intention to do so.
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Yu confirmed that Huawei has neither car production lines nor personnel qualified to set them up. Instead, the company focuses on providing software, design, and quality control solutions. Seres was the first company to partner with Huawei through the Smart Selection program, and according to Yu, it has benefited greatly from its association with Huawei.
Recent articles in the local Chinese press have claimed that Huawei is pulling its R&D teams away from Seres, looking for new factories, and replacing AITO logos with Huawei. However, according to Richard Yu, none of these claims are true. In fact, Huawei is increasing its investment in Seres and still planning to sell AITO M5, M7, and the M5 EV through its showrooms. The company has over 5,000 experience stores and an additional 60,000 retail outlets. Over the last two years, Huawei has been preparing its sales staff to sell cars.
See also: Seres 5 Make Debut in Europe As Premium Sport Electric SUV
Interestingly, Huawei is planning to consolidate its showroom network rather than expand it. The company understands that selling cars is quite different, and rather than blindly adding outlets, it will focus on enriching its sales experience. Huawei promises that its smart car division will be profitable by the end of 2025, but to achieve that, it has to sell over 1 million cars along with its partners. The company has no intention of selling cars below the RMB 200,000 ($29,000) and will focus on high-end vehicles instead.
