BUSINESS

Huawei Launches New Auto Brand as Rivals Pull Ahead

Published: Apr. 17, 2025 5:48 p.m. GMT+8

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Huawei consumer business group Chairman Richard Yu and SAIC Motor President Jia Jianxu speak at Shangjie's brand launch event in Shanghai on Wednesday. Photo: Huawei

Huawei Technologies Co. Ltd. and state-owned SAIC Motor Corp. Ltd.’s (600104.SH) new electric vehicle (EV) brand will debut its first model this fall, joining China’s crowded auto market.

Shangjie, unveiled by Huawei’s consumer business group chairman Richard Yu at a Shanghai launch event on Wednesday, is the fifth under Huawei’s Harmony Intelligent Mobility Alliance.

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Huawei and SAIC Motor launched "Shangjie," their first joint EV brand, investing 6 billion yuan with a 5,000-person team.
Huawei’s auto sales face growth challenges due to high price points, with segment sales dropping in China’s under-300,000 yuan market.
SAIC aims to regain market relevance, targeting 1.7 million vehicle sales in 2026 and leveraging its scale for competitive pricing.

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Who’s Who

Huawei Technologies Co. Ltd.: Huawei Technologies Co. Ltd. is expanding into the EV market through a partnership with SAIC Motor, debuting the new Shangjie brand this fall. Positioned as a tech-forward, fashion-conscious venture under Huawei’s Harmony alliance, it reflects Huawei's growing role in China's automotive industry. The alliance, despite sluggish sales, integrates Huawei's expertise in product development and sales. High pricing remains a challenge, but SAIC’s scale may enable Shangjie to compete in lower market segments against dominant players like BYD.

SAIC Motor Corp. Ltd.: SAIC Motor Corp. Ltd. is a state-owned Chinese automaker that partnered with Huawei to launch the Shangjie EV brand. Formerly China's top carmaker, it has invested 6 billion yuan and assembled a 5,000-person team for the venture. The company aims to leverage its scale and supply chain to compete in the competitive EV market, including going downmarket. After losing its top-selling position in 2024, SAIC set ambitious sales targets of 100,000 monthly units by late 2025 and 1.7 million vehicles in 2026.

Seres Group Co. Ltd.: Seres Group Co. Ltd. (601127.SH) collaborates with Huawei on the Aito brand under the Harmony Intelligent Mobility Alliance. In March, Seres sold 18,805 EVs, marking a 42% year-over-year decline, reflecting challenges despite Huawei's involvement. The Aito brand faces price positioning issues, with models priced above 200,000 yuan, limiting competitiveness in the fastest-growing segment of China's auto market.

Chery Automobile Co. Ltd.: Chery Automobile Co. Ltd. is a partner of Huawei under the Harmony Intelligent Mobility Alliance, collaborating on the Luxeed brand.

BAIC BluePark New Energy Technology Co. Ltd.: BAIC BluePark New Energy Technology Co. Ltd. (600733.SH) is a partner in Huawei's Harmony Intelligent Mobility Alliance under the Stelato brand. The partnership reflects Huawei's strategy to collaborate with various automakers to enhance its presence in China's automotive value chain by integrating smart and connected systems.

Anhui Jianghuai Automobile Group Corp. Ltd.: Anhui Jianghuai Automobile Group Corp. Ltd. (600418.SH) is one of Huawei's partners under the Harmony alliance model, collaborating on the Maextro brand.

Zhejiang Leapmotor Technology Co. Ltd.: Zhejiang Leapmotor Technology Co. Ltd. is an emerging EV player in China. In March 2025, it outperformed Huawei's EV sales, selling over 30,000 cars. This highlights Leapmotor's stronger presence in the competitive Chinese electric vehicle market.

Li Auto Inc.: The article mentions Li Auto Inc. as one of the emerging EV players in China. In March, the company sold more than 30,000 cars, outperforming Huawei's auto ventures in sales.

XPeng Inc.: XPeng Inc. is mentioned as one of the emerging EV players in China. Unlike Huawei's Harmony alliance brands, XPeng sold more than 30,000 cars in March 2025, showcasing stronger performance in the competitive EV market.

BYD Co. Ltd.: BYD Co. Ltd. (002594.SZ) is a leading player in China’s EV market and a dominant competitor. It operates in the fastest-growing segment of the market, focusing on vehicles priced below 200,000 yuan. BYD’s success contrasts with Huawei’s Harmony alliance, which faces challenges due to higher price points and slower sales growth. The article suggests that SAIC and Huawei’s new Shangjie brand may leverage SAIC’s scale to compete with established companies like BYD.

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