GAC GROUP(SH:601238) Xin Lang Cai Jing·2025-11-21 03:57Core Insights - The Chinese automotive market has entered a phase of deep integration and competition, with many companies consolidating their brand lines to maximize scale effects. GAC Group, however, has chosen to start from scratch by establishing a new high-end electric vehicle brand, Qijing, in collaboration with Huawei, which contrasts sharply with the industry's trend towards concentration [1][6]. Group 1: Brand and Product Development - Qijing is positioned in the high-end electric vehicle market, targeting consumers with budgets above 300,000 yuan, with its first model, a shooting brake, set to launch in June next year [1]. - The collaboration with Huawei's Intelligent Automotive Solutions Business Unit (BU) marks a shift where Huawei will take control of product definition and participate in core decision-making from concept to market launch [1][3]. - Qijing aims to meet the unmet needs of young consumers by providing vehicles that are stylish, safe, intelligent, and enjoyable to drive, addressing a gap in the current market [2][4]. Group 2: Market Positioning and Strategy - The target demographic for Qijing includes young, sporty, and fashion-conscious consumers, which aligns with Xiaomi's automotive strategy, both focusing on design, intelligence, and driving experience [2][3]. - The design language for Qijing's first model was determined by Huawei's Milan Aesthetics Research Institute, emphasizing aesthetics and driving performance over merely competing on smart technology [4][5]. - GAC Group's previous attempts to collaborate with Huawei faced challenges, but the establishment of a new company, Huawang Automotive, has revitalized this partnership, with both teams working closely together for nearly a year [6][7]. Group 3: Financial Context and Organizational Changes - GAC Group reported a net loss of 1.774 billion yuan in the third quarter, an increase of 377 million yuan year-on-year, highlighting the urgent need for new successful models to stabilize market share [7]. - The company has initiated the "Panyu Action" to restructure its organization and processes, transitioning from strategic control to operational management, which is seen as a core framework for entering a "wartime state" [7][8]. - A new management team has been appointed to cover key areas such as product development, manufacturing, and branding, ensuring that operational decisions are closely aligned with market demands [8].