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Yu Chengdong: Huawei is not considering launching automotive products below 200,000 yuan for the time being

2024-08-27

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On August 27, at yesterday's press conference, Huawei Intelligent Automotive Solutions BU CEO Yu Chengdong publicly stated that the newly launched M7 Pro model is currently in a state of losing money on each car sold.
Yu Chengdong discussed the cost of the vehicle in detail at the press conference. He revealed that the lowest-equipped version of the new M7 Pro, which has a pre-sale price of 249,800 yuan, will lose more than 20,000 yuan or nearly 30,000 yuan for each car sold. This statement reveals the profitability challenges of this model under the current market pricing.
In fact, this is not the first time that Yu Chengdong has mentioned the losses of Huawei's smart car business. In April this year, he wrote that due to Huawei's large R&D investment in smart driving technology, Huawei's high-end smart driving models priced below 300,000 yuan are actually sold at a loss.
When talking about low-cost cars, Yu Chengdong made it clear that Huawei is not considering launching car products below 200,000 yuan for the time being, because it does not currently have the ability to control costs below 200,000 yuan.
It is worth noting that although Changan Deep Blue S07 is the first model priced below 200,000 yuan and uses Huawei's intelligent driving technology, it uses Qiankun Intelligent Driving (pure vision solution) rather than Huawei's intelligent driving system based on LiDAR solution. Yu Chengdong emphasized that Huawei's intelligent driving system based on LiDAR solution cannot currently achieve such a low cost, at least at the current stage.
Source: Huanqiu.com
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