AutoBeta(AutoBeta.net)03/02 Report--

Last week, Reuters reported that Huawei plans to build its own-brand electric vehicles and is discussing the contract manufacturing of Huawei electric vehicles with automakers such as BAIC Langu and Changan Automobile. At that time, Huawei reiterated that it would not build cars, but aimed to help car companies build good cars.

BAIC Langu said publicly that BAIC Langu has been cooperating with Huawei for more than three years, and the content of the cooperation is not "contract manufacturing" as described by foreign media, but the launch of a joint model ARCFOX HBT. It is understood that ARCFOX α S HBT, the first model jointly built by BAIC Langu and Huawei, will be unveiled at the Shanghai International Auto Show in April 2021. Officially, "HBT" means HUAWEI BLUEPARK TOGETHER.

Affected by the news, BAIC Blue Valley pulled up the sealing plate in a straight line on the same day, rising by more than 9% at one point. By the end of the day, BAIC Langu reported a rise of 6.89%, or 8.84 yuan per share.

According to officials, Huawei currently has three lidar boarding schemes, including single lidar, two lidar and three lidar. BAIC Langu ARCFOX α S HBT model will adopt the most advanced lidar carrying scheme. HBT will also be equipped with 6 millimeter wave radars, 12 cameras, 13 ultrasonic radars, as well as Huawei chips with computing power up to 352Tops, to form a self-driving solution above the L3 level.

It is understood that BAIC Langu and Huawei started cooperation as early as 2017, and the relationship and content of cooperation between the two companies continued to upgrade from 2018 to 2019. ARCFOX α T, equipped with Huawei Intelligent Network and Smart Electric, was delivered in October 2020, while ARCFOX α S HBT, which will be unveiled at the Shanghai Auto Show in April 2021, is the result of further cooperation between the two companies.

As for BAIC Langu and Huawei jointly built models can be recognized by the market, the attitude is still relatively conservative. In October last year, ARCFOX α T, the first model of BAIC Blue Valley's high-end brand, was officially launched. It was expected to reverse BAIC's persistently sluggish sales performance, but the final result was "unexpected". Only 709 cars were sold in the two months from October 24 to December 31.

BAIC's "Huawei version", a partnership with Huawei, will be launched in April 2021 and is scheduled to go on sale in November. Although the new car is blessed by Huawei technology at the technical level and has a certain competitive advantage in intelligence, it is a new energy vehicle after all. As a high-end new energy model, after listing, consumers will choose Huawei's technological advantage or BAIC's product quality, Huawei's high-end price or BAIC's people-friendly price. it is really hard to imagine what kind of spark will happen after the joint products launched by the two companies.

As we all know, the current market performance of BAIC Blue Valley is not optimistic, whether it is performance or sales performance. According to previous reports, BAIC's cumulative sales of 25914 vehicles in 2020, down 82.79% from the same period last year, is expected to make an annual net loss of 6 billion yuan to 6.5 billion yuan, the first loss in four years.

Lian Qingfeng, deputy secretary of the party committee of BAIC New Energy, has said that 2020 is the worst year for BAIC Blue Valley, but a series of reforms and adjustments, and even some measures to survive without arms, will be basically completed in 2020. Perhaps the worst year for the manager has given BAIC Langu a stronger foothold in 2021.

In the first month of the year, a number of car companies got off to a good start, while BAIC Blue Valley fell again. BAIC Blue Valley sold only 1072 vehicles in January 2021, down 46.56 per cent from a year earlier, according to the data.

Perhaps, as executives say, there have been a series of internal adjustments, and BAIC Blue Valley may usher in new development opportunities this year. However, for BAIC Blue Valley, which has an annual loss of more than 6 billion yuan, this year's challenge is also enormous.

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