Core Viewpoint - The article discusses the competitive dynamics between Xiaomi and Huawei in the electric vehicle market, highlighting Xiaomi's rapid success with its SUV model YU7 and contrasting it with Huawei's struggles in the automotive sector due to its "no car manufacturing" strategy. Group 1: Xiaomi's Success - Xiaomi's first SUV model YU7 was launched at a starting price of 253,500 yuan, featuring a range of 835 kilometers, leading to over 200,000 orders within 3 minutes and 289,000 orders within an hour [2][3] - The rapid sales growth of Xiaomi's YU7 reflects its effective market strategy, with a significant increase in sales targets from 300,000 to 350,000 units for 2025 due to high demand [35] Group 2: Huawei's Challenges - Huawei's sales of its smart vehicle brand, Zhijie, have seen a dramatic decline, dropping from 15,900 units in December 2022 to 5,689 units in May 2023 [6][10] - Huawei's internal debate over whether to enter car manufacturing has led to a firm stance against it, with CEO Ren Zhengfei emphasizing the need to avoid resource waste and maintain partnerships with established car manufacturers [15][19][21] Group 3: Strategic Differences - Xiaomi has adopted a comprehensive approach by leveraging its existing brand equity from the smartphone market to penetrate the automotive sector, while Huawei has fragmented its brand into multiple sub-brands, diluting its market recognition [30][39] - The article notes that Huawei's strategy of not entering the low-end market has limited its reach, while Xiaomi's "high configuration at low price" strategy has attracted younger consumers [36] Group 4: Future Outlook - The competition between Xiaomi and Huawei represents a broader battle of business models, with Xiaomi focusing on direct consumer engagement and vehicle manufacturing, while Huawei aims to be a technology supplier [44][45] - Despite current challenges, Huawei still possesses significant technological advantages in smart driving and cockpit systems, but it must address production capacity issues to improve its market position [42][43]