Huawei Yu Chengdong: Hongmeng Smart's low-priced models are difficult to make a profit, and there are no plans for the market below 200,000 yuan.

This morning, June 14, 2024, at the high-profile China Automobile Blue Book Forum, Yu Chengdong, Huawei’s Managing Director, Chairman of Terminal BG, and Chairman of Smart Car Solutions BU, made a speech on the cost of Hongmeng Zhixing cars. Insights.

Yu Chengdong said frankly that most of the models currently launched by Hongmeng Intelligent Technology Co., Ltd. under 300,000 yuan are facing losses. However, he also pointed out that the company's high-end products accounted for more than 80%, effectively supporting the overall business profitability. According to statistics, from January 1 to June 9 this year, Hongmeng Zhixing’s sales have reached 159,100 vehicles, and the average sales price is close to 400,000 yuan. Consumers are more inclined to choose models with higher configurations, which has brought considerable profits to Huawei and its partner car companies.

Although sales figures are not outstanding compared to some competitors, Yu Chengdong remains optimistic. He laughed and said that although the sales of these 159,100 vehicles were not many, the average price of each vehicle was as high as 400,000 yuan, which cannot be ignored. He further explained that in China, the annual sales volume of the passenger car market worth more than 300,000 yuan can reach three to four million units, of which the market share is mainly the market share of traditional luxury car brands such as BBA (Mercedes-Benz, BMW, Audi).

The 150,000 cars sold by Hongmeng Zhixing were won in competition with traditional luxury car brands.

When talking about the low-cost car market, Yu Chengdong made it clear that

Hongmeng Zhixing will not launch models below 200,000 yuan for the time being

. He admitted that Hongmeng Zhixing currently does not have the ability to control costs below 200,000 yuan. In this speech, Yu Chengdong did not use the word "far ahead" that he usually used in the past to describe Huawei's industry status. On the contrary, he focused more on emphasizing Huawei's advantages as a system and stated that it will continue to work hard in aspects such as product quality to achieve the "those four words" leading position in the industry.

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