Core Insights - The collaboration between SAIC Motor and Huawei has led to the launch of the new model, Shangjie H5, which initially saw over 80,000 pre-orders but faced disappointing sales after its official launch, with only 10,000 orders in the first hour [2][3]. - The automotive industry is witnessing a trend where multiple car manufacturers are partnering with Huawei, which has established collaborations with over 30 domestic and international car companies [5][6]. - Different levels of collaboration exist between Huawei and car manufacturers, categorized into three models: component supply, HUAWEI INSIDE (HI) model, and HarmonyOS Intelligent Driving model [7][9]. Group 1 - The initial success of Shangjie H5 was short-lived, with lower-than-expected orders raising questions about the effectiveness of Huawei's technology in the automotive sector [3][4]. - Major car manufacturers, including FAW Hongqi and others, are also partnering with Huawei, indicating a broader trend in the industry towards collaboration with tech companies [5][6]. - The varying degrees of collaboration with Huawei reflect the strategic choices of different car manufacturers, with some opting for deeper integration while others maintain more independence [7][12]. Group 2 - The HI model allows car manufacturers to retain control over design and manufacturing while receiving technical support from Huawei, exemplified by the recent partnership between FAW Hongqi and Huawei [9][10]. - The HarmonyOS Intelligent Driving model involves Huawei's deeper participation in product design and quality control, which some manufacturers, like Chery, are adopting to enhance their market competitiveness [10][12]. - The collaboration dynamics vary significantly among manufacturers, with some prioritizing brand independence while others leverage Huawei's technology to enhance their offerings [12][14]. Group 3 - SAIC Motor's CEO emphasized the need for collaboration in a networked automotive ecosystem, highlighting the shift from traditional sales models to an ecosystem-driven approach [29]. - The financial struggles of companies like BAIC and SAIC have prompted them to seek partnerships with Huawei to revitalize their brands and expand their market reach [24][25][28]. - The competitive landscape is intensifying, with companies like BYD and Geely rapidly increasing their market presence, putting pressure on traditional manufacturers to innovate and adapt [20][21]. Group 4 - The HarmonyOS Intelligent Driving model has led to the creation of several new brands, including the "Five Realms," which are positioned to compete in the growing electric vehicle market [11][15]. - The resource allocation among the "Five Realms" is uneven, with some brands, like Seres, receiving more support from Huawei, which affects their market performance [39][41]. - The future success of these collaborations will depend on how well each manufacturer can leverage Huawei's technology while maintaining their brand identity and market position [44][49].

Core Insights - Huawei and SAIC-GM Wuling's collaboration is set to introduce a new price segment in China's smart driving market, with a joint project expected to launch within the year [1] - This initiative likely adopts Huawei's HI model, indicating a deep cooperation rather than mere component supply, with a new SUV priced around 150,000 RMB featuring Huawei's advanced driving system [1][2] Group 1: Market Positioning - If successful, this will mark Huawei's first entry into the high-end driving capabilities below the 200,000 RMB price point, expanding its market reach [2] - SAIC's strategy involves a dual approach across different price segments, with the new brand "Shangjie" targeting the mid-to-high-end pure electric market priced between 150,000 to 200,000 RMB [2] - The collaboration aims to enhance Wuling's brand positioning, with Baojun already attempting to integrate advanced driving features into models priced around 100,000 RMB [2] Group 2: Technology and Supply Chain - The technology route relies on Zhuoyue Technology, which has transitioned from DJI's vehicle division, focusing on cost-effective high-end driving features [2][3] - The introduction of Huawei's ADS into Baojun's higher-end models may lead to more advanced features being available in lower-priced Wuling models, creating a layered supply chain [3] - Huawei's HI model not only provides software and hardware solutions but also engages deeply in system architecture and upgrades, appealing to cost-sensitive consumers seeking high specifications [3] Group 3: Competitive Landscape - The internal structure of SAIC's offerings allows for a division between high-end and low-end markets, optimizing cost and technology reuse within the group [3] - For Huawei, this represents a test of its cost and supply chain capabilities, as entering the 150,000 RMB segment poses challenges related to hardware costs and service systems [3][4] - The competitive landscape in China's smart driving market is evolving, with the ability to balance cost, experience, and scale at the 150,000 RMB price point becoming crucial for Tier 1 positioning [4]