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Recently, Yu Chengdong, BU CEO of Huawei smart car, said in an interview with the media: Huawei enters the automobile industry, the goal is to achieve the first, because no one will remember the second.

In addition, it also said that due to the lack of core, it would be difficult for the new car brand AITO to meet its sales target of 300000 vehicles this year, but said the team would do its best to help closely working car companies reach number one in the world. It is worth mentioning that on April 15, Yu Chengdong also wrote that if Shanghai cannot resume work and production, all science and technology / industrial industries involving the Shanghai supply chain will completely stop production after May, especially the automobile industry. The economic loss / cost of the industry will be great. It was also revealed that since mid-April, some companies have begun to cut off supply chains and production due to closures such as Shanghai. It is not difficult to see that the lack of core and the epidemic have had a certain impact on Huawei's new car brand AITO.

The new car brand AITO is a high-end car brand jointly built by Jin Kang Selis and Huawei in December last year. The M5 is its first model, positioned as a medium-sized luxury SUV, with a total of three new models, including 249800 yuan for the standard rear-drive version, 279800 yuan for the four-wheel drive performance version, 319800 yuan for the four-wheel drive flagship version, and 1242km for the longest battery life. According to earlier media reports, the M5 ordered 365 units on the first day of the market, exceeded 2000 on the third day, and reached 6000 on the fifth day. According to the relevant data, the M5 sold 3045 vehicles in March. As for the M5, Yu Chengdong once said that the arrival of the M5 marks a historic transformation of cars from vehicles to intelligent ecology, and is also Huawei's "key link in building the ecology of the Internet of everything". Thus it can be seen that Huawei has high hopes for the M5. On the other hand, Cyrus also held an "oath meeting" and said it would produce 10, 000 AITO M5s in the first quarter of this year. However, in the automobile industry, 300000 yuan is regarded as a watershed for car positioning, with a price of more than 300000 yuan. As it enters the competitive area of luxury cars, the competition will become more and more fierce.

Previously, Yu Chengdong said, "it is planned to use a thousand stores to sell cars by the end of this year. Assuming that each store can sell 30 units a month, the monthly sales will reach 30,000 units. Huawei will challenge the sales target of 300000 units this year. As a result, the annual sales of the cooperative car companies will reach 100 billion yuan." Our goal is to build our partners with Huawei into the most profitable car companies in China. " However, Yu Chengdong also said that at present, Huawei's brand marketing ability, retail channel capacity, and product competitiveness can support the sales target of 300000 units, but considering that the products have just climbed the slope, there are huge risks in the supply chain. Serious shortage in the industry and other problems should not be underestimated, 300000 still has a lot of challenges.

Although Huawei has repeatedly reiterated that it does not build cars, it continues to lay out in the automotive field. In fact, Huawei has been suffering from a shortage of chips since 2019, leading to a decline in the limits of its mobile phone business. According to relevant data, Huawei's market share of mobile phones was nearly 50% in 2019, with shipments of 290 million units, but by 2020 it shipped only 50 million units, a plunge of 80%. In addition, Huawei computers and other products are also unable to supply because of "no core". Huawei has said that the smart car parts business is a long-term strategic opportunity for Huawei. According to relevant data, Huawei's investment in smart car solutions reached US $1 billion in 2021, with a research and development team of 5000 people.

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