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Huawei smartly follows Xiaomi into the EV market, starting battery production for its partner.

ByYasmeeta Oon

Apr 11, 2024

Huawei smartly follows Xiaomi into the EV market, starting battery production for its partner.

In a significant stride towards electrification, Huawei Technologies, in partnership with Chery Automobile, has commenced the mass delivery of its eagerly awaited luxury electric vehicle (EV), the Luxeed S7. This milestone, announced just days following Xiaomi’s introduction into the EV market, marks a new chapter for both tech giant Huawei and automotive manufacturer Chery in the competitive landscape of electric vehicles.

After navigating through a series of challenges, including semiconductor shortages and manufacturing dilemmas, the collaboration between Huawei and Chery has finally seen the fruition of their efforts. The Luxeed S7 electric sedan, a symbol of innovation and luxury, is now making its way to consumers, with a starting price of approximately $34,600 (249,800 yuan).

The road to mass delivery for the Luxeed S7 has not been without its obstacles. Semiconductor shortages and specific manufacturing issues, particularly around a computing unit supplied by Huawei, initially impeded the vehicle’s production timeline. These challenges led to a delay in delivery and caused friction with Chery, highlighting the complexities of integrating advanced tech components into automotive manufacturing at scale.

However, Richard Yu Chengdong, the chairman of Huawei’s intelligent automotive solution business unit, announced on Weibo the commencement of mass deliveries. This announcement not only signifies a significant achievement for both companies but also showcases their capability to overcome substantial hurdles.

Technical Specifications and Market Reception
ModelLuxeed S7
PriceStarts at approximately $34,600 (249,800 yuan)
PartnershipHuawei Technologies and Chery Automobile
OrdersApproximately 20,000 as of November 28
Major ChallengesSemiconductor shortages, Manufacturing issues
Delivery CommencementPost-announcement by Richard Yu Chengdong

Key Highlights:

  • The Luxeed S7 marks the inaugural model under Chery’s Luxeed EV brand, reflecting a significant step towards expanding its electric vehicle portfolio.
  • Despite initial setbacks, Huawei’s collaboration with Chery has led to the successful rollout of the Luxeed S7, with mass deliveries now underway.
  • The partnership’s success amidst the semiconductor crisis and manufacturing challenges underlines the resilience and innovation capabilities of both companies.
  • Huawei’s smart car unit, amidst navigating US tech sanctions, has been a pivotal growth driver, contributing to Huawei’s fastest revenue growth in four years.

The launch and delivery of the Luxeed S7 are just the beginning of what appears to be a promising journey into electric mobility for Huawei and Chery. Despite the initial production and delivery challenges, the strong pre-order numbers (approximately 20,000) for the Luxeed S7 signify a robust market demand for luxury electric vehicles in China.

Moreover, Huawei’s strategic move to spin off its smart car unit into a separate entity, as announced by Yu, suggests a long-term commitment to the automotive industry. This decision is anticipated to bring financial sustainability to the unit, which has seen significant investment and focus over the past year.

The electric vehicle market in China is at a pivotal point, with traditional automotive manufacturers and tech companies alike vying for a share of the burgeoning sector. The successful mass delivery of the Luxeed S7 by Huawei and Chery stands as a testament to the potential for collaboration between tech giants and automotive manufacturers in shaping the future of transportation.

As the Luxeed S7 begins to reach customers, the industry will be watching closely to see how this model performs in the real world and how it influences consumer preferences towards electric vehicles. With Huawei’s technological prowess and Chery’s automotive manufacturing expertise, the Luxeed S7 could very well set new standards for what consumers expect from luxury electric vehicles.

The journey of the Luxeed S7 from conception to mass delivery encapsulates the challenges and triumphs of integrating cutting-edge technology with automotive excellence. As Huawei and Chery navigate through the complexities of the EV market, their partnership could serve as a blueprint for future collaborations between tech firms and traditional car manufacturers. With the Luxeed S7, Huawei and Chery are not just delivering a luxury electric vehicle; they are driving forward the vision of an electrified, sustainable future.

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Featured Image courtesy of DALL-E by ChatGPT

Yasmeeta Oon

Just a girl trying to break into the world of journalism, constantly on the hunt for the next big story to share.

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