The partnership between Chery Automobile and Huawei Technologies has created a significant buzz in the electric vehicle (EV) world, with the birth of their joint venture, Luxeed. Their maiden offering, the Luxeed S7, is poised to hit Chinese roads this November, and it comes with an audacious goal – to not just compete with Tesla’s iconic Model S but to surpass it.
Huawei’s Ambitious Move
In light of Huawei’s struggles to penetrate the US market due to geopolitical challenges, the Luxeed S7 signifies a strategic shift. While the exact technical specifications of the S7 remain tightly guarded, Huawei’s CEO, Richard Yu Chengdong, is unabashedly optimistic about its potential. The S7 is strategically aimed at China’s burgeoning middle class, known for its affinity towards cutting-edge technology, including voice-activated controls and autonomous driving.
A Powerful Confluence of Expertise
Luxeed’s allure lies in its unique blend of Chery’s automotive proficiency and Huawei’s technological prowess. Chery, riding high with a 17% surge in EV deliveries last year, brings substantial manufacturing capabilities to the partnership. On the other hand, Huawei, compelled to diversify its portfolio following US sanctions, brings its Huawei HI system into play – a platform that boasts state-of-the-art computing and autonomous driving capabilities.
The Verdict of an Analyst
Independent analyst Gao Shen underscores the significance of the Luxeed brand, describing it as “more than the sum of its parts.” This synergy harnesses the strengths of Chery’s manufacturing capabilities and Huawei’s innovation. As the Chinese EV market prepares for an astounding 55% growth this year, the Luxeed S7 faces a challenging but promising landscape.
Disrupting the EV Arena
China’s EV realm is already teeming with local giants like Nio, Li Auto, and Xpeng, all inching closer to Tesla’s dominance in the premium EV segment. However, the Luxeed S7 is positioned as a wild card entry that could potentially disrupt the status quo. Leveraging its unique parentage, it aims to offer a compelling proposition that combines technical sophistication with a strong local foothold. Only time will tell if Chinese consumers will embrace this bold contender.
Key Takeaways:
Chery and Huawei’s Luxeed joint venture is gearing up to challenge Tesla’s Model S in the Chinese EV market.
Huawei’s strategic move into EVs comes as it faces challenges entering the US market.
Luxeed S7 aims to attract China’s tech-savvy middle class with advanced features like voice controls and autonomous driving.
The partnership leverages Chery’s manufacturing capabilities and Huawei’s cutting-edge technology to create a unique proposition.
The Luxeed S7 enters a competitive Chinese EV market with strong contenders like Nio and Xpeng.
The success of the Luxeed S7 will depend on its ability to combine technological sophistication with local appeal.
