in-depth analysis of huawei's smart car business from the b-end and c-end
2024-09-25
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huawei automotive bu business scale estimation: huawei automotive bu will become the "bosch" in my country's smart car field. the automotive bu business covers the full stack of smart car solutions. after becoming independent, the automotive bu is expected to become the largest smart car solution provider in china with integrated hardware and software. we estimate that its steady-state annual revenue scale is expected to reach 127.5 billion to 165 billion yuan, and its annual net profit scale is expected to reach 19.1 billion to 24.8 billion yuan.huawei smart car business space calculation for each brand:ask the worldit has become a new benchmark for self-owned luxury cars, and new players in smart cars are coming on the scene one after another. wenjie is currently the most successful huawei smart car brand. we estimate that the potential market size of the wenjie series in china is expected to reach 800,000 to 1.2 million units. in addition to wenjie, smart cars jointly developed by huawei and other car companies will also be launched in the second half of 24, such asbaicthe co-developed enjoy s9cherythe cooperating zhijie r7jacthe zunjie, which is jointly developed with jac, will be launched in 2025. the price range of zhijie is relatively large, but the competition is more intense. chery is transforming its new energy vehicles in multiple directions. the current positioning of xiangjie is similar to that of wenjie. xiangjie is an important tool for baic to reverse the sluggish development of its new energy vehicles. if the extended-range version is launched, the monthly sales of xiangjie s9 is expected to exceed 10,000 units. the zhixuan model jointly developed with jac is positioned at the million-yuan level. among independent automakers,bydthere are few other players outside of china, and we estimate the market size potential to be between 50,000 and 100,000 units.sandbox simulation of the future development of huawei's smart car business: with the independence of the car bu imminent, the first priority is to expand the scale and increase the market value as soon as possible. after the independence of the car bu, it may continue to absorb other car companies to invest, so the car bu needs to quickly expand its business scale and increase its market value to facilitate subsequent financing. in addition, the optimization and iteration of high-end intelligent driving also depends on the rapid increase in the production and sales scale of high-end cars. with the increasing number of customers and the investment of new shareholders in the car bu, huawei's car bu will inevitably face resource reallocation after its independence. ifavitaeven if the production and sales scale of supporting customers does not meet expectations, huawei smart car will still be the most important customer resource for the automotive bu.huawei's automotive bu operates independently, with annual revenue potential exceeding 100 billionhuawei's automotive bu operates independently to build the "bosch" of the smart car era. as of early july 2024, the automotive bu's operating income in 2024 will reach 10 billion yuan (according to a recent report by 36kr).changan automobileaccording to the announcement, the transaction documents for changan automobile's investment in huawei's auto bu (shenzhen yinwang) are expected to be signed no later than august 31, 2024.we believe that the automotive bu is expected to become the "bosch" of the smart car era after operating independently. we estimate that the revenue scale of the automotive bu when its business reaches a mature state will be between 127.5 billion and 165 billion yuan. assuming a net profit margin of 15%, the corresponding annual net profit will be between 19.1 billion and 24.8 billion yuan.long-term space estimation of huawei's automotive bu business scale
note 1: assuming the total sales volume of passenger vehicles reaches 30 million units;note 2: as high-end intelligent driving gradually covers the passenger car market with a price of more than rmb 200,000, models equipped with high-end intelligent driving will account for about 1/3 of the total passenger car market. the car bu is one of the few mature suppliers in china with high-end intelligent driving mass production experience, which is relatively scarce. its market share is expected to reach 40%;note 3: the basic version of intelligent driving gradually covers the passenger car market of 100,000 to 200,000 yuan, and the models equipped with the basic version of intelligent driving account for about 50% of the total passenger car market. at present, the basic version of intelligent driving players include horizon robotics, dji, huawei, etc. huawei is expected to become an important player in the basic version of intelligent driving. assuming that its market share reaches 25%, the price of a single vehicle will drop to about 4,000 yuan on the existing basis;note 4: the smart cockpit of the vehicle bu covers a complete range of smart cockpit products. there are few smart cockpit suppliers similar to huawei's vehicle bu in china. assuming that the market share of the smart cockpit business of the vehicle bu reaches 25%, it corresponds to 7.5 million units per year. considering that different models can be equipped with different product combinations of huawei's smart cockpit, the price of each vehicle varies greatly. here, 5,000 to 10,000 yuan per vehicle is taken as the basis for calculation;note 5: in addition to smart driving and smart cockpit businesses, other businesses of the automotive bu cover a wide range, including automotive optical business (products such as ar-hud, smart lights, etc.), smart vehicle control business (products such as "tuling chassis") and smart vehicle cloud business. the prices of different product combinations vary greatly. here, we take 5,000 yuan/vehicle and 3 million units per year as the basis for calculation. it is estimated that the annual revenue of other businesses will reach 15 billion yuan.the car bu was previously huawei's only loss-making business segment, but it has turned losses into profits in the first quarter of 2024. huawei's car bu was established in 2019 and was positioned as a core supplier of incremental components for intelligent connected vehicles in its early days. at present, huawei's car bu business covers five major solutions: intelligent driving, intelligent cockpit, intelligent vehicle-mounted, intelligent vehicle control, and intelligent vehicle cloud. according to huawei's 2023 annual report, since the establishment of huawei's car bu, the cumulative r&d investment has exceeded 30 billion yuan, the r&d team has reached 7,000 people, and huawei's car bu achieved operating income of 4.74 billion yuan in 2023. the car bu was previously huawei's only loss-making business segment. huawei's yu chengdong previously stated that huawei's car bu lost 6 billion yuan in 2023. in a recent interview, yu chengdong said that due to the hot sales of the ask the world series, huawei's smart car business and huawei's car bu have turned losses into profits in the first quarter of 2024.summary of huawei automotive bu's main businesses
the intelligent driving product line is the largest business segment of the car bu. huawei's intelligent driving products mainly include ads systems, intelligent driving computing platforms and sensors (lidar and millimeter-wave radar). according to huawei's intelligent automotive solutions official account, the number of people in huawei's car bu intelligent driving product line is close to 5,000, of which the ads system r&d team accounts for more than half of the total number of intelligent driving teams. huawei's high-level intelligent driving has been iterated to version 3.0 and will be first installed in the enjoy s9 in august 2024. huawei's car bu released the qiankun ads se (cancelling the laser radar and adopting a pure visual solution) in april 2024, which can realize high-speed noa and intelligent parking functions.huawei intelligent driving system hardware cost estimation and perception hardware change trends
the cost of ads 1.0 system is about rmb 80,000.alpha sthe hi version was launched as the first cooperative model of huawei inside. a total of two configurations were launched, priced at 397,900 yuan/429,900 yuan respectively. the price is about 50,000 yuan higher than the alpha s of arcfox, which was launched at the same time with similar configuration but not equipped with huawei's intelligent driving solution. if the difference in battery costs between the two is excluded, we estimate that the cost of huawei's ads 1.0 system in 2022 will be around 80,000 yuan.the cost of ads 2.0 has been greatly reduced, and the hardware cost has dropped by more than 50% compared to ads 1.0. the ads 2.0 system was first installed in the m5 in 2023. the current models include the m5/m7/m9 and the s7. compared with the 1.0 version, the hardware cost has dropped, the number of laser radars has been reduced from 3 to 1, the number of cameras has been reduced from 13 to 11, and the number of millimeter-wave radars has been reduced from 6 to 3, and it is no longer dependent on high-precision maps. when the m5 is launched in 2023, the price of the m5 smart driving edition will be 30,000 yuan higher than the standard version. we expect the hardware price of ads 2.0 to be around 30,000 yuan. in terms of software price, the current standard one-time purchase price of huawei's ads advanced function package is 36,000 yuan (but the landing price of the intelligent driving package in different periods varies due to changes in discounts. the current actual activation price of ads 2.0 is 10,000 yuan), the monthly package price is: 720 yuan/month, and the annual package price is: 7,200 yuan/year.the cost of intelligent driving hardware continues to decline. in the long run, the cost of high-end intelligent driving hardware is expected to drop to around 10,000 yuan. according to cao xudong, founder of momenta, the cost of intelligent driving hardware follows moore's law, and the cost of hardware is reduced by half every two years.xiaopengat the china electric vehicle hundred people forum (2024), it was stated that if high-end intelligent assisted driving is to quickly occupy the market, the cost needs to be controlled within 10,000 or 20,000 yuan. the intelligent driving model launched by xiaopeng motors in the second half of 2024 will reduce the assisted driving hardware cost by 50%. therefore, we believe that it is a reasonable assumption that the hardware cost of high-end intelligent driving systems will drop to around 15,000 yuan by 2025 or 2026. in the long run,teslathe cost of fsd can be used as the ultimate cost reduction target for domestic high-end intelligent driving players. dazhuo intelligent ceo gu junli (who has worked for tesla and xiaopeng motors) said in an interview that the cost of tesla's intelligent driving is us$1,000. based on the above, we believe that the hardware cost of domestic high-end intelligent driving players, led by huawei, is expected to drop to around 10,000 yuan.the basic version of intelligent driving (ads se) will be launched in the passenger car market below 200,000 yuan. currently, huawei ads se has been first installed in the entry-level model of zhijie s7. the price of zhijie s7 equipped with huawei ads se is 249,800 yuan, which is 20,000 yuan lower than the price of zhijie s7 with the same configuration and ads 2.0. based on this, it is estimated that the current hardware cost of ads se is about 10,000 yuan. deep blue automobile announced that deep blue s07 will be equipped with huawei qiankun ads se in the second half of 24 years, with an estimated price of around 150,000 to 200,000 yuan, which means that huawei's intelligent driving solution ads se for the mid-range market will be launched in the market below 200,000 yuan.the smart cockpit business is the second largest business of the car bu. according to huawei's intelligent car solution official account, the car bu smart cockpit product line is responsible for implementing the application of the hongmeng system in the car. car companies can choose to purchase only the hongmeng car system based on the kirin chip, or they can purchase the hongmeng cockpit that integrates the hongmeng car system, qiankun audio, qiankun car smart screen, and hongmeng cockpit ecosystem. according to the data of the official account wandian auto, the price of purchasing a hongmeng car system alone is several thousand yuan, and the main customers are avita, baic arcfox, etc., while the price of each hongmeng cockpit is between 10,000 and 20,000 yuan, and the main customers are the cooperative manufacturers of zhixuan car.analyzing the development potential of huawei smart car "four realms"2.1 wenjie sets a new benchmark for independent luxury cars, and new players in smart car selection appear one after anotherthe "wenjie" series has become a new benchmark for independent luxury, and other smart models will be launched one after another. according to the sales data of the china passenger car association, the cumulative sales of the hongmeng zhixing series from january to june 2024 reached 197,000 units, topping the sales of china's new power brands in the first half of the year. the cumulative sales of the "wenjie" m7 in the first half of the year reached 106,000 units. according to the data disclosed by hongmeng zhixing, the cumulative orders of the "wenjie" m9 reached 110,000 units in 7 months after its launch, becoming the first in sales of models priced above 500,000 yuan. the "wenjie" series has become a new benchmark for domestic independent luxury. in addition to the "wenjie" series, the smart cars that huawei cooperates with other car companies will also debut in the second half of 2024. for example, the "xiangjie" s9 (executive flagship sedan) in cooperation with baic will be launched in august 2024, and the second model of the "zhijie" suv "zhijie" in cooperation with chery will also be launched in the second half of 24. the model in cooperation with jac will also be launched in 2025. changes in the sales structure of huawei smart cars huawei smart cars has announced the price range of its models
huawei's smart cars are mainly aimed at the mid-to-high-end market of more than 200,000 yuan, and the positioning of each model is different. huawei's yu chengdong said at the china automotive blue book forum in june 2024: hongmeng zhixing's models are loss-making as long as they are priced below 300,000 yuan, and currently do not have the cost capacity for models below 200,000 yuan. therefore, hongmeng zhixing models are mainly aimed at the mid-to-high-end market of more than 200,000 yuan. judging from the positioning of the smart models that huawei cooperates with the four car companies, the askjie in cooperation with seres mainly focuses on the suv series; the zhijie in cooperation with chery is positioned in the mid-range and mid-to-high-end, covering sedans and suvs; the enjoyjie in cooperation with baic blue valley focuses on executive high-end users, suitable for business and family; the zunjie in cooperation with jac is positioned as a million-level luxury model, benchmarking maybach and rolls-royce.comparison of huawei smart selection's "four realms" vehicle model positioning, production capacity and scale potential
huawei smart car sales and revenue forecast from 2024 to 2026
wenjie: the competition landscape of high-end hybrid suv is good, and wenjie has gained a place in the high-end suv market. seres will also take wenjie, which is in cooperation with huawei, as the company's future strategic direction. we expect the sales volume of wenjie to be 408,000/525,000/655,000 units in 2024-2026. in the long run, we expect the potential market size of the wenjie series in china to reach 800,000-1.2 million units.zhijie: mainly competing with tesla, zeekr, and xiaomi, zhijie faces a more intense competitive environment, but chery itself has a complete new energy transformation strategy, covering high, medium, and low-end as well as pure electric and hybrid power routes. the development of new energy is the company's future strategic focus. zhijie can serve as a supplement to the company in the mid-to-high-end new energy field. we expect zhijie's sales volume to be 67,000/200,000/280,000 units from 2024 to 2026.xiangjie: xiangjie is aimed at high-end executive users, taking into account both commercial and home use. the first model, xiangjie s9, is benchmarked against traditional luxury cars. for baic, cooperation with huawei is an important measure for baic to get rid of the unfavorable situation of new energy development in the short term. xiangjie focuses on high-end cars and can complement wenjie. there is considerable potential for development. we expect the sales volume of xiangjie to be 8,000/120,000/280,000 units in 2024-2026.zunjie: zunjie is positioned as a million-level luxury car, and the first model will be launched in 2025. we expect zunjie's sales volume to be 10,000/30,000 units in 2025-2026. under optimistic expectations, zunjie's long-term scale potential is expected to reach the market size of porsche in china. if the brand sells models at lower levels (similar to porsche macan), its market potential is expected to be close to 100,000 units. if the models are not sold at lower levels, the market size is expected to reach about 50,000 units.2.2 seres: the potential for subsequent development in the industry is still hugethe wenjie series in cooperation with huawei is the strategic focus of seres in the future. wenjie is currently the most successful brand among huawei's smart cars. wenjie in cooperation with huawei is also the focus of seres' future development. zhang xinghai, the actual controller of seres, has also publicly stated that "seres is determined to take the road of joint cross-border cooperation, not the road of fighting alone." seres and huawei want to build aito wenjie towards the goal of "a world-class new luxury car leading brand." in terms of production capacity, seres has currently prepared three smart factories for wenjie. seres smart factories are smart factories built according to the standards of industry 4.0 and the requirements of the industrial internet. among them, the liangjiang smart factory produces wenjie m5, the fenghuang factory produces wenjie m7, and the newly built seres super factory produces wenjie m9.for huawei, wenjie is the most successful smart car brand at present. when the other "three realms" have not yet proven themselves and the hi model customers have not yet increased in large numbers, wenjie is still huawei's most relied upon smart car model room.the high-end hybrid market in which wenjie is located is gradually expanding, and the competition landscape is good. in the medium and long term, the domestic market potential of the wenjie series can reach about 1 million. at present, the penetration rate of high-end hybrid vehicles is rapidly increasing. according to the statistics of the china passenger car association, the penetration rate of plug-in hybrid vehicles in the passenger car market above 200,000 yuan from january to april 2024 is 20.6%, an increase of about 5 percentage points compared with 2023. at present, the main players in the high-end hybrid market are ideal and wenjie, and there are fewer players involved. in the process of transforming from fuel vehicles to new energy, hybrid is undoubtedly a technical route that users are more likely to accept. at present, there are still many models with monthly sales of more than 10,000 in the field of fuel vehicles, which provides a broad growth space for high-end hybrid players such as wenjie. assuming that the retail scale of passenger cars with a price of more than 200,000 yuan in my country reaches 8 million units, of which suvs account for about 50%, the total market volume faced by the wenjie series is about 4 million units. assuming that wenjie occupies 20%~30% of the market capacity, the scale potential of the wenjie series in china can reach about 800,000~1.2 million units.2.3 chery automobile: zhijie helps chery develop mid-to-high-end new energy vehiclesthe initial delivery of the zhijie s7 was difficult, and its sales after the second listing still fell short of expectations. zhijie's first model, the zhijie s7, was launched in november 2023. according to data disclosed by huawei hongmeng zhixing, the number of orders for the zhijie s7 exceeded 10,000 units one month after its launch, but due to delivery difficulties, the monthly delivery of the zhijie s7 within three months after its launch still did not exceed 1,000 units (according to statistics from the china passenger car association). the zhijie s7 was launched for the second time in april 2024, but the market landscape faced by the zhijie s7 at this time has changed significantly compared to when it was first launched. xiaomi su7 has become a phenomenal model in the price range of 200,000 to 300,000 yuan. so far, the highest monthly sales of the zhijie s7 are around 5,000 units, which has not met previous expectations.the new energy market where zhijie is located has a large space, but the competition is more intense. in an interview with the media, huawei's yu chengdong said: "zhijie is positioned in the broad mid-range and mid-to-high-end, covering sedans and suvs, which are cars that a wide range of people can afford." judging from the two cars that zhijie has launched or released, its target market is in the mid-to-high-end market of 250,000 to 350,000 yuan, and its benchmark models or main competitors are tesla, zeekr, xiaomi, etc. we believe that the new energy vehicle market capacity in the price range where zhijie is located is large, but this track presents the characteristics of many players, product homogeneity, and bottlenecks in the penetration rate of high-end pure electric vehicles.chery's mid-to-high-end new energy transformation is a two-legged walk, and the product planning of its own brand xingjiyuan and zhijie has a high degree of overlap. xingtu's xingjiyuan series and zhijie are both built on the e0x platform. the models of zhijie and xingjiyuan have a certain overlap in price and positioning, which may cause xingjiyuan's potential customers to be diverted by zhijie. as the sister car of zhijie s7, xingjiyuan es has never sold more than 1,000 units per month after its launch. in terms of intelligent driving, in addition to cooperation with huawei, chery established dazhuo intelligent in 2023 and invited gu junli, who was the vice president of autonomous driving r&d at xiaopeng, to serve as the ceo of dazhuo intelligent. chery automobile has a relatively complete brand matrix and a clear new energy transformation strategy. we believe that developing its own new energy may be chery's more important task at present. zhijie, which cooperates with huawei, can serve as an important supplement to chery in the mid-to-high-end new energy field. at the same time, chery must balance the allocation of resources between its own new energy transformation and zhijie.2.4 baic bluepark: cooperating with huawei to seek breakthroughs in new energythe cooperation with huawei has entered the smart selection mode, and the first cooperative model, xiangjie s9, is positioned as a high-end sedan. in august 2023, baic blue valley announced that baic new energy will carry out smart selection cooperation with huawei terminal co., ltd. on the basis of its existing strategic cooperation with huawei. huawei's yu chengdong disclosed that the xiangjie, a cooperation between huawei and baic blue valley, focuses on executive high-end users. the first model of the cooperation between the two parties, xiangjie s9, is a medium-to-large sedan with a business orientation. it is built on baic new energy's existing be22 platform, with a pre-sale price of 450,000 to 550,000 yuan, and will be officially launched in august 2024.baic new energy acquired the equipment assets of the miyun factory of its affiliated company foton motor and implemented technical transformation of the production line, and leased the land, factory buildings and ancillary facilities of the miyun factory to meet the production requirements of huawei smart car, with a planned production capacity of 120,000 units per year.whether the pure electric version of xiangjie s9 can break the curse of high-end pure electric vehicles being difficult to sell remains to be seen. we judge that if the s9 launches an extended-range version, its monthly sales are expected to exceed 10,000 units. we believe that xiangjie s9 is another heavyweight high-end pure electric model after ideal mega in 2024, but the current development of high-end pure electric vehicles is generally lower than expected. according to sales data from docar, the average monthly sales of pure electric vehicles with a starting price of more than 400,000 yuan are generally less than 1,000 units. the failure of ideal mega and the delay of ideal auto's subsequent pure electric vehicles also indicate to a certain extent that high-end pure electric vehicles will not grow rapidly in the short term. at present, the sales of wenjie, which has a good sales performance, are mainly extended-range vehicles. therefore, we are cautious about the sales expectations of the pure electric xiangjie s9. if xiangjie s9 launches an extended-range series in the future, referring to the current sales scale of wenjie m9, we expect its monthly sales scale to reach more than 10,000 units.the cooperation with huawei is an important measure for baic to get rid of the unfavorable situation of new energy vehicle development, and the potential development space is considerable. baic blue valley has switched to the cooperation model of huawei smart carthis is an important measure for baic to get rid of the unfavorable situation of new energy development. in terms of subsequent model planning, according to the "beijing new energy automobile co., ltd." published on the official website of baic blue valley,according to the information disclosed in the environmental impact report of the company's pure electric passenger vehicle project, the second model of the miyun plant is a luxury station wagon based on the current s9.the body size and wheelbase are basically the same as s9, and the third product is positioned as a b+ class suv. from the current market positioning, xiangjie is the brand closest to wenjie.focusing on high-end suvs, xiangjie can establish its influence in the high-end sedan field through s9 and complement wenjie.2.5 jac motors: joining hands with huawei to tap into the luxury car marketjoin hands with huawei to build a luxury new energy platform (x6 platform). in december 2023, jac motors and huawei terminal co., ltd. signed the "smart new energy vehicle cooperation agreement". the two parties will cooperate in product development, production and manufacturing, sales, services and other fields based on huawei's smart car solutions, and strive to build luxury smart connected electric vehicles. according to the announcement, jac motors will become huawei's fourth smart selected cooperation car company.according to the "environmental impact report of the construction project of jac's annual production of 200,000 mid-to-high-end intelligent pure electric passenger vehicles" announced by the anhui provincial department of ecology and environment, jac motors will create mid-to-high-end new energy products and build two pure electric platforms (de and x6). the de platform meets the domestic economic and improvement market needs, and its products cover sedans, suvs and mpvs. the x6 platform is empowered by huawei's intelligent technology and actively seizes the domestic high-end market. the models covered are basically b-class to d+-class, and can adapt to the common platform development of various models such as sedan, suv, mpv, crossover, sporty, etc. the "report" shows that jac motors plans to sell more than 500,000 passenger cars in the next five years, of which the newly added de and x6 platform products will achieve a production and sales scale of more than 200,000 vehicles. in order to ensure the realization of production and sales targets, jac motors decided to implement the "jac annual production of 200,000 mid-to-high-end intelligent pure electric passenger car construction project". the project is located in taohua industrial park, feixi county, with a total investment of 3.98 billion yuan. after the project reaches full production, it will produce 200,000 new energy passenger vehicles (including extended-range) annually.the positioning of the models of the cooperation between jac and huawei has reached the million-level. according to yu chengdong's previous interview with the media, the models of the cooperation between huawei and jac are positioned as ultra-high-end and priced at millions. from the perspective of the overall market size, the scale of the high-end market of millions is relatively small. the domestic market is basically occupied by high-end foreign brands, and it is basically dominated by traditional fuel vehicles. porsche is one of the best-selling super luxury brands in china. according to data released by porsche, porsche's delivery volume in china in 2023 was 79,000 units. at present, among the domestic independent car companies, only byd is looking forward to entering this market. at present, the price of byd u8 is 1.098 million yuan. according to statistics from the china passenger car association, the cumulative sales of byd from january to june 2024 were 5,500 units, with an average monthly sales of less than 1,000 units.the million-class luxury cars supported by huawei have the potential to break through the ceiling of the industry scale, and its market scale is expected to reach 50,000-100,000 units in the medium and long term. the million-class luxury car market has high barriers to entry and strong brand premium, and it is a track that domestic new energy players have not cultivated deeply. however, from the perspective of market scale, million-class luxury cars are a relatively niche market. from the perspective of single model sales, annual sales of more than 20,000 units are already hot-selling models. from the perspective of brand ceiling, porsche is one of the best-selling super luxury brands in china (including porsche's relatively low-priced macan). we believe that with huawei's technical support and influence, the million-class models cooperated by huawei and jac have the potential to challenge the industry's top. under optimistic assumptions, the long-term market scale potential is expected to reach porsche's domestic market scale. if the brand sinks the model (similar to porsche macan), its market potential is expected to be close to 100,000 units. if the model does not sink, the medium and long-term market scale is expected to reach about 50,000 units.at the critical juncture, huawei's intelligent vehicle business development sandbox simulationhuawei's smart car business for b-end and c-end will undergo major changes in the short term.on the b-side, according to a previous announcement by changan automobile, the final transaction documents for changan's investment in huawei's automotive bu are expected to be officially signed before the end of august 24, and huawei's automotive bu will soon operate independently.on the c-end, in addition to the askjie, more smart models will join the hongmeng intelligent driving ecosystem. at present, we have made the following sandbox simulations on the development of the subsequent car bu and huawei smart car:1. huawei will gradually fade out the huawei inside label.in april 2024, huawei's automotive bu released a new brand of intelligent car solutions with intelligent driving as the core - huawei qiankun, and fully upgraded solutions such as "qiankun ads", "qiankun car control", and "qiankun car cloud". the launch of huawei qiankun means that huawei is gradually fading the previous huawei inside label, and "huawei qiankun" and "hongmeng cockpit" will serve as the two core brands of huawei's intelligent car solutions.2. transfer of relevant intangible assets. huawei no longer owns the vehicle brand.according to the announcement made by seres in july 2024, seres intends to acquire the intangible assets related to wenjie from huawei for rmb 2.5 billion, and the assessed price of these assets is rmb 10.2 billion. the transfer of wenjie-related assets was due to national regulations. in addition, the transfer of assets occurred on the eve of the independence of huawei's automotive bu, or it may be to further clarify the relationship between huawei and vehicle manufacturers. huawei no longer owns a vehicle brand.3. for most car companies, embracing huawei's smart car technology is a wise choice.in the past few years, vehicle manufacturers have gone through stages such as the "hardware arms race" and "full-stack self-research" of intelligence. at present, the expected results have not been achieved. the piling up of hardware has led to increased costs, but has not brought any benefits to consumers' intelligent experience. for most car companies, the lack of high-end car brands with production and sales scale has led to the high-cost self-research intelligent solutions becoming a tree without roots and water without a source. at the current point in time, most traditional car companies are trapped in the dilemma of high-end brands being difficult to scale up and the small number of intelligent solutions installed. huawei smart car has entered the scale effect period. more smart cars mean more huawei intelligent car solutions installed, which means better and faster iterations and better consumer experience, as well as lower cost advantages.4. after huawei's automotive bu becomes independent, its first priority is to quickly expand the supporting scale and thus increase the market value of the automotive bu.after becoming independent, the car bu may continue to attract other car companies to invest. therefore, for the car bu, expanding the revenue scale as soon as possible is more conducive to improving its own valuation. we believe that before reaching a certain revenue scale, most of the car bu's business will be positioned as the tier 1 role of car companies, and the degree of self-development and self-production of intelligent products will be relatively high. however, as the revenue scale expands, huawei's car bu will pay more attention to profitability, and supporting businesses will gradually focus on core technology links, thereby releasing some industrial nodes to the supply chain, such as domain controller oem business. in addition, as high-end intelligent driving solutions gradually move towards end-to-end, training computing power + data volume gradually become core barriers, the survival space of intelligent driving solution providers may become smaller, and hardware suppliers are more inclined to the oem role.if the business expansion of the car bu does not meet expectations after the independent operation, huawei still has a strong motivation to develop huawei's smart car business. currently, huawei's smart car is the largest customer of the car bu. if the business expansion of the car bu goes smoothly after the independent operation, and the models equipped with the car bu solution achieve good sales, the importance of smart car to the car bu will be relatively reduced, and the necessity for huawei to develop smart car may be reduced. however, if the business development of the car bu does not meet expectations after the independence, that is, the production and sales scale of other vehicle brands supporting the car bu is not as expected, and it is difficult to achieve economies of scale, then huawei's smart car business is still needed to ensure the positive cycle of huawei's car bu business.5. after the car bu operates independently, it will inevitably face the reallocation of resources.huawei smart selection automotive is currently the most important customer of huawei automotive bu, and has previously received more resources from the automotive bu. however, after the automotive bu operates independently, as its customer resources gradually increase and the number of stakeholders involved increases after the automakers become shareholders, the limited r&d resources of the automotive bu will inevitably face redistribution. in the short term, there may be a contradiction between the resource allocation of huawei smart selection and the hi model. in addition, the automotive bu's customer resources are gradually enriched, which will also lead to further dispersion of its r&d resources.comparison of four smart car companies from multiple dimensionsfrom the perspective of equity structure, the four car companies huawei cooperates with are all state-owned or state-controlled car companies. the second largest shareholder of seres is dongfeng motor, one of the three major central enterprises; chery automobile is a local state-owned automobile company controlled by wuhu state-owned assets supervision and administration commission and participated by anhui state-owned assets supervision and administration commission; baic bluepark is controlled by beijing state-owned assets supervision and administration commission; jac motors is controlled by anhui state-owned assets supervision and administration commission. from the perspective of the founder's control over the company, the actual controller of seres is the founder zhang xinghai, and chery automobile chairman yin tongyue is one of chery automobile's major shareholders and has a great influence on chery's operations and management.seres - a private automobile company with state-owned shares.seres was first established in 1986. in the early days, the company mainly produced springs, and then entered the fields of motorcycle shock absorbers and motorcycle production. in 2003, the company and dongfeng motor jointly established "dongfeng yu'an vehicle co., ltd.", marking the company's entry into the automobile industry. dongfeng yu'an mainly produces small vans, and later dongfeng yu'an was renamed dongfeng xiaokang. in 2020, seres introduced dongfeng motor through a private placement and purchased 50% of dongfeng xiaokang's equity held by dongfeng motor through equity swap. since then, seres has achieved 100% control of dongfeng xiaokang, and the company has also changed from a previous private enterprise to a state-owned shareholding enterprise. the actual controller zhang xinghai holds approximately 14.0% of seres' equity. the company's second largest shareholder is dongfeng motor group co., ltd., which holds 21.68% of seres' equity.chery automobile - a state-owned automobile company controlled by the wuhu state-owned assets supervision and administration commission. chairman yin tongyue has a great influence on chery automobile. chery automobile was founded in 1997 and is headquartered in wuhu city, anhui province. it is a local state-owned automobile company with a stake. according to tianyancha data, yin tongyue, chairman and general manager of chery automobile, directly or indirectly benefits from approximately 18.9% of the shares, the wuhu state-owned assets supervision and administration commission ultimately benefits from 19.4%, and the anhui state-owned assets supervision and administration commission ultimately benefits from 5.2%. in february 2022, luxshare precision's (002475.sz) controlling shareholder luxshare co., ltd. invested in chery automobile, holding a total of approximately 15.6% of chery automobile's shares.baic bluepark - affiliated to beijing state-owned assets supervision and administration commission, it is the main carrier of baic new energy's transformation. baic bluepark is affiliated to baic group, which is controlled by beijing state-owned assets supervision and administration commission. its subsidiary beijing new energy automobile co., ltd. was established in 2009. it is the first independent operation and the first enterprise to obtain new energy vehicle production qualification in my country. in september 2018, baic bluepark became the first domestic new energy vehicle stock through asset reorganization.
jac motors - affiliated to the anhui provincial state-owned assets supervision and administration commission, volkswagen holds a 50% stake in its controlling shareholder, jac holdings. jac motors was formerly the hefei jac automobile manufacturing plant founded in 1964. it is a comprehensive automobile manufacturer integrating commercial vehicles, passenger vehicles and powertrains. it is affiliated to the anhui provincial state-owned assets supervision and administration commission and was listed on the shanghai stock exchange in 2001. in 2020, volkswagen became a shareholder of jac holdings (anhui jac automobile group holdings co., ltd.), the controlling shareholder of jac motors. after the completion of the transaction, volkswagen and the anhui provincial state-owned assets supervision and administration commission each hold 50% of the shares of jac holdings, and the anhui provincial state-owned assets supervision and administration commission maintains control over jac holdings.-- END --
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