Is Yu Chengdong really happy that the milestone of 100,000 vehicles has been reached?

On May 27th, in the final assembly workshop of Sailisi Liangjiang Smart Factory, the 100,000th production car of AITO was officially rolled off the assembly line.

At the scene, Zhang Xinghai, Chairman of Celeste Group, and Yu Chengdong, Managing Director of Huawei, were all smiles. It took 15 months to complete the production of 100,000 vehicles, becoming the fastest growing brand of new energy vehicles.

In the lively atmosphere, Yu Chengdong claimed that he "didn’t like to brag and advertise", but he boasted to the outside world again that he would sell 100,000 vehicles a month in the future, but this time he added that it would take some time.

The current situation in the world really can’t support Yu Chengdong’s boasting too much.

Since 2023, the market sales volume of Wenjie has been in the doldrums. From January to May this year, the deliveries were 4,469 vehicles, 3,521 vehicles, 3,625 vehicles, 2,437 vehicles and 5,629 vehicles respectively, with a cumulative delivery of 19,700 vehicles.

Although the sales volume rebounded in May, it was still far from the market performance in 2022. The overall sales volume in 22 years rose month by month, and it remained at a high level of about 10,000 vehicles from August. According to this growth momentum, the time for the production of 100,000 vehicles in the industry could have come earlier.

So why did the sales growth of the world suddenly step on the brakes after entering 2023?

Why can’t you sell it?

In January this year, with the withdrawal of the state subsidy policy for new energy vehicles, the superimposed Spring Festival holiday was in the off-season of sales, and new energy vehicles suffered a collective sales decline. In the face of market pressure, Tesla took the lead in reducing prices, which made the new energy vehicle market experience an extremely difficult winter.

From this point of view, it seems that the sales volume of the media in January is indeed caused by an unfavorable objective environment.

However, in February and March, when the sales of new energy car companies such as Zero Run and Nezha began to pick up, the sales of the sector declined instead of rising, which only showed that the market competitiveness of the sector declined.

In 2022, with the support of Huawei’s intelligent technology, the world of inquiry was favored by many consumers, especially some Huawei powder.

However, in 2023, the competition of new energy vehicles is becoming more and more fierce. Many car companies have strengthened the layout of automobile intelligent technology, and the new models launched are also equipped with intelligent cockpit, intelligent driving and intelligent network connection system with diverse technologies and outstanding highlights.

The competitive advantage of the world is no longer obvious, but the shortcomings in other aspects of the product are becoming more and more prominent.

In the 25% offset collision experiment of China Insurance Research Institute in November last year, the M _ 7 of Wenjie appeared the bending deformation of A-pillar, but it still got the excellent rating of the project. Although Huawei engineers later came forward to explain the principle, it still caused great controversy, and many people questioned the quality and safety of the world.

The cramped space of the two models in the world has also been criticized. After all, space has greatly affected the ride comfort.

In terms of after-sales service, the industry has also received many bad reviews. The after-sales service of Wenjie Automobile is the responsibility of Cyrus Automobile. Many car owners complain that the after-sales service attitude is average, the after-sales treatment efficiency is low, and the after-sales service network is not perfect, so the cost of car owners seeking after-sales maintenance is high.

Defects in safety, comfort and after-sales service of several key products have made the reputation of the world decline.

In order to save the sales decline, Wenjie Automobile once wanted to further use Huawei’s aura.

Since February this year, the communication terminology in the communication field has started to strengthen its connection with HUAWEI, including the use of "Huawei Communication" in offline terminals and online communication.

However, this operation only lasted for more than a month, and an internal decision signed by Ren Zhengfei, the founder of Huawei, was released, which shattered the illusion of asking the world.

The decision once again emphasizes that Huawei does not build cars, and it is valid for 5 years. It also makes strict regulations on the exposure of Huawei logo in automobile design, and emphasizes that "Huawei /HUAWEI" cannot be used in vehicle publicity and appearance.

Although Yu Chengdong subsequently responded, "The accurate explanation is that Huawei does not build cars alone, but we do intelligent driving solutions, which are to build cars with car companies, build good cars and build the best cars." However, Huawei’s vacillation in decision-making has greatly shaken the purchasing psychology of some potential consumers.

The deep link between Wen Jie and Huawei failed to go further, and Wen Jie’s identity as Huawei’s only "son" has also been lost.

The cooperation modes between Huawei and car companies include TIer 1 mode of parts, HI(Huawei Inside) mode and intelligent car selection mode, and Huawei’s participation in the cooperation has deepened in turn.

Wen Jieben is the only brand that Huawei strives to build and has a high "Chinese content". However, in the past few months, Huawei has established cooperative relations with Chery, Jianghuai and Jihu, and will jointly build cars by adopting the smart car selection model. This means that the unique "Huawei brand bonus" in the world no longer exists.

Under the smart car selection mode, Huawei is deeply involved in product definition and vehicle design, and products enter Huawei channel sales. In 2022, the world of inquiry relied on Huawei’s huge sales terminal network all over the country, and once realized the rapid expansion of sales.

However, Huawei’s sales terminal was originally selling mobile phones, which was not suitable for selling cars, so the decline in sales gradually emerged.

Can the world see the future?

Although the current market performance of the industry is not good, in the long run, the sales volume of the industry still has a great chance to revive the market sales.

In view of the current sales situation of the company, Yu Chengdong once explained that the company is currently in the stage of upgrading its products, including iterating high-end intelligent driving models. Since the large-scale test drive and delivery have not yet started, it has had a certain impact on the sales during this period. As the capacity of Cyrus climbs, the sales volume will also improve.

Indeed, as Yu Chengdong said, M7 and M5 currently on sale in the world have been on the market for more than half a year, which makes it hard to bear the huge impact brought by many new products.

The new version of Wujie M5 Intelligent Driving will be delivered in June. It will be equipped with HUAWEI ADS 2.0 Advanced Intelligent Driving System and HarmonyOS Intelligent Cockpit 3.0 System, which is officially called "Double Intelligent Ceiling".

The large SUV, the Audi M9, will also be launched in the fourth quarter of this year. The Audi M9 is positioned as a medium and large SUV with an estimated price range of 500,000-600,000 yuan, which will be the most expensive car in the world, and is called "the best SUV within 10 million" by Yu Chengdong.

Wenjie is a relatively successful brand under Huawei’s deep cooperation mode. I believe that Huawei has come up with enough technology to improve the sluggish sales of Wenjie.

Huawei’s strong strength in automotive intelligent technology will bring a good endorsement to the industry. At a time when consumers are paying more attention to the automotive intelligent experience, the selling point of the industry is still very attractive, and it is expected to usher in a high market fever.

What is the intelligent experience represented by advanced intelligent driving, and whether the defects in other aspects of the product can be made up, largely determines the future market performance of the industry.