AutoBeta(AutoBeta.net)03/31 Report--

On March 31st, a # Ren Zhengfei post reiterated that Huawei does not build cars # rushed onto the Weibo hot search list and became the focus of the industry's attention.

Ren Zhengfei, founder and CEO of Huawei, issued an internal announcement to re-emphasize that "Huawei does not build cars" and extended the validity period for another five years. In this internal announcement, in addition to emphasizing that "Huawei does not build cars", Ren Zhengfei also put forward strict requirements for the exposure of Huawei logo in car design. Ren Zhengfei stressed that Huawei / HUAWEI can not be used in the vehicle promotion and appearance, and stressed: "can not use 'Huawei Jijie', 'HUAWEI AITO'."

In response to the above news, Huawei said that in order to avoid being misunderstood by the outside world as "Huawei car-making", Huawei issued a "resolution on Huawei not building cars" today. The business model and cooperation strategy of ecological automobile will not change.

In fact, in the past few years, despite Huawei's repeated statements that it does not build cars, the industry's speculation that "Huawei wants to build cars" has never stopped. In September 2019, Huawei set up the Smart car Solutions Division to "provide incremental components." since then, there has been frequent news that "Huawei is going to build a car." for this reason, in November 2020, Ren Zhengfei issued a similar document that does not build a car. and stressed that "Huawei does not build cars", which mentioned that "who will build cars in the future, interfere with the company, can be transferred from the post, and look for another job, which is valid for three years." Now that the document has not yet expired, Ren Zhengfei once again stressed that "Huawei does not build cars" and extended the validity period to five years, and once again made clear Huawei's position in the auto business.

After the integration of Huawei's auto business division and consumer business group in 2021, Yu Chengdong took over Huawei's auto business and became the head of the company. Since then, Huawei's layout in auto-related business has been very radical, so the speculation of "Huawei car-making" has once again become the topic of after-dinner chat. In particular, on March 8 this year, Huawei and Cyrus jointly built the AITO car and posted posters on the official Weibo and Wechat official account platforms, using the new slogan "HUAWEI World", while the well-known "AITO World" did not appear. In addition, at Huawei's flagship new product launch in the spring of 2023, Huawei Managing Director, terminal BG CEO and smart car solution BU CEO Yu Chengdong also directly used the expression "Huawei asks the boundary", so the industry believes that Huawei's automobile business is in the stage of high-speed acceleration, which may be a sign that Huawei is further dominating the development of AITO cars.

It is understood that AITO and its LOGO trademark belong to Chongqing Jiankang Enterprise Management Consulting Co., Ltd., which is owned by Cyrus, and Beijing Yongan Shida Science and Trade Co., Ltd., which has done business with Huawei related enterprises for many times. However, Huawei and Cyrus responded quickly on the same day when the slogan of AITO was changed to "HUAWEI". "HUAWEI is a Huawei eco-car brand and a new business model pioneered by Huawei," Huawei said. Cyrus, the other side of the company, also said: "the long-term and deep cross-border cooperation relationship and cooperation model between the company and Huawei have not changed." The two sides will further deepen joint business cooperation and launch more new and competitive products that are popular with users in the future. "

Auto Industry concern noted that on the evening of March 30, in the HarmonyOS3 upgrade announcement released by AITO Automobile on the official Weibo, the slogan "HUAWEI ask the boundary" was still used in the promotion picture, and the "HUAWEI question line" slogan had not been updated as of press time.

At present, there are three modes of cooperation between Huawei and automobile companies, namely, selling soft and hard parts to automobile companies, that is, Huawei is simply acting as an upstream supplier; Huawei Inside (HI) model, that is, cooperating to develop customized complete self-driving and intelligent cockpit solutions; and Huawei smart car selection mode, that is, Huawei is deeply involved in product definition, vehicle design and channel sales. Among them, Cyrus and Huawei have the most in-depth cooperation, after signing a business deepening cooperation agreement, according to the regulations, the joint business goal of the two sides is to achieve the production and sale of 1 million vehicles by 2026, and the first flagship model based on the new platform will be released in 2023.

AITO is one of Huawei's key auto brands. At present, its models on sale are M5, M7 and M5 EV versions. In 2022, AITO delivered more than 75000 new cars, making it the fastest growing brand of new energy vehicles. However, after entering 2023, although Huawei's binding with the boundary has further deepened, sales have declined. Data show that from January to February in 2023, AITO delivered a total of 7980 vehicles, of which 4475 were delivered in January, down 55.88% from the previous month. 3505 vehicles were delivered in February, down 21.7% from the previous month, and there has been a month-on-month decline for two consecutive months. The industry believes that the change in internal strategy and the unprecedented "price war" in the car market may bring new tests to AITO.

At Huawei's 2022 annual report meeting held today, Xu Zhijun, Huawei's rotating chairman, also stated once again that Huawei clearly does not build cars, but helps car companies build good cars. As for the validity period, Huawei's internal documents are valid for up to 5 years, so the internal documents issued by Ren Zhengfei today are valid for 5 years. In fact, Huawei will not build cars for ten years. And Huawei's auto strategy will not be changed over and over again. In addition, in the interview session, Xu Zhijun stressed: "some departments and partners in the abuse of Huawei brand, Huawei has been in the process of investigation." We will not let the Huawei brand be abused. Huawei does not build cars, nor does it have any brand of cars. In the latest document released by Mr. Ren, Huawei explicitly demanded that the Huawei brand be prohibited from appearing in front of or as a car brand. We will clean up and rectify the existing materials in all flagship stores and sales stores so that they can return to our strategic positioning. "

At the same time, Huawei also disclosed revenue from digital energy, smart cars and other businesses for the first time. In 2022, Huawei earned 50.8 billion yuan from digital energy business, 45.3 billion yuan from Huawei cloud business, 2.1 billion yuan from smart car solution BU, 354 billion yuan from ICT infrastructure business and 214.5 billion yuan from terminal business.

Yu Chengdong has previously suggested that Huawei BU to be profitable in 2025, and to achieve profitability in 2025, it must first help car companies sell 1 million vehicles.

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