Luxeed, the exciting collaboration between state-owned Chery Automobile and telecommunications equipment giant Huawei Technologies, is gearing up to unveil its inaugural production model this November. Named the S7, this electric vehicle (EV) boasts a sleek coupe-like design and will be constructed on Chery’s E0X platform, specially crafted for two-motor all-wheel-drive EVs.
Setting the Stage
While the specifics concerning price, range, and intelligent features remain under wraps, Richard Yu Chengdong, the head of Huawei’s automotive division, confidently asserts that the S7 will outshine Tesla’s Model S in various critical aspects. This bold claim positions Luxeed in direct competition with a range of premium EVs that have found favor among China’s burgeoning middle-class demographic, thanks to their cutting-edge digital technologies, encompassing autonomous driving, self-parking capabilities, and intuitive voice-activated controls.
A Powerful Alliance
Industry analysts are viewing Luxeed as a highly promising venture, harnessing the amalgamation of Huawei’s technological prowess and Chery’s formidable manufacturing expertise. Chery, headquartered in Anhui province, is strategically pivoting towards EVs in response to their rapid adoption, both domestically in China and globally. In 2018, they established Jetour, a subsidiary exclusively dedicated to the EV market. Jetour reported a remarkable achievement in 2022, delivering over 180,000 EVs, marking a 17 percent upswing compared to the preceding year.
Huawei’s Steady Drive into the EV Realm
Despite grappling with U.S. sanctions, Huawei has been making substantial inroads into the EV industry. In April 2021, the company introduced its cutting-edge Huawei HI intelligent automotive solution, offering car manufacturers a comprehensive suite of computing systems, 4D imaging radar technology, autonomous driving platforms, and intelligent thermal management solutions. Huawei has also been actively supplying automotive chips, lidar sensors, and state-of-the-art internet connectivity technologies to various car manufacturers.
In a bid to further solidify its presence in the EV market, Huawei joined forces with carmaker Seres, giving birth to the Aito brand in late 2021. Together, they are set to produce luxury EVs available exclusively in Huawei stores throughout mainland China. The Aito M9, a full-size luxury electric sport-utility vehicle, is slated to make its debut in the mainland market this December.
The Crowded Chinese EV Landscape
While China’s automotive and EV market is undeniably experiencing unprecedented growth, with battery-powered vehicle sales poised to surge by a remarkable 55 percent in 2023, it’s important to acknowledge that the market is becoming increasingly crowded, with approximately 200 players vying for attention.
Tesla, particularly with its locally manufactured Model 3, continues to reign supreme in the premium EV sector. However, it now faces robust competition from emerging Chinese EV startups such as Nio, Li Auto, and Xpeng. These companies have gained recognition for their advanced intelligent features, which have garnered significant attention from consumers.
In conclusion, Luxeed’s imminent entry into the EV market, powered by the formidable alliance of Chery and Huawei, has the potential to disrupt the status quo. With their ambitious claims of outperforming Tesla’s Model S and the backing of cutting-edge technology, Luxeed is poised to make waves in the ever-expanding world of electric vehicles. As the Chinese EV landscape continues to evolve, competition intensifies, promising more innovation and choices for consumers than ever before.
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