Core Viewpoint - Toyota's joint venture GAC Toyota is setting a precedent for foreign brands by collaborating with local tech giants Huawei and Xiaomi, indicating a shift in the approach of foreign automakers towards local partnerships in the competitive Chinese market [4][5][10]. Group 1: Collaboration and Market Strategy - GAC Toyota's recent event showcased a collaboration between Huawei, Xiaomi, and Momenta, highlighting a significant shift in the attitude of foreign automakers towards local tech companies [4][5]. - GAC Toyota has upgraded its partnership with Huawei to a full-scale collaboration, which may encourage other joint ventures to follow suit [5][10]. - The upcoming GAC Toyota model, the Platinum Smart 7, will be the first to integrate Huawei's DriveONE motor, HarmonyOS cockpit, and Xiaomi's ecosystem, showcasing a comprehensive tech integration [7][10]. Group 2: Market Performance and Trends - In the first five months of the year, GAC Group's total sales reached 605,225 units, a year-on-year decline of 13.48%, while GAC Toyota's sales increased by nearly 3% to 273,600 units [8][9]. - The collaboration with tech companies is expected to attract both Huawei and Xiaomi's customer bases, potentially boosting GAC Group's sales performance [10][20]. - The changing consumer preferences, with a significant portion of users opting for traditional brands over new entrants, presents an opportunity for foreign automakers to regain market share [19][20]. Group 3: Industry Dynamics - The automotive industry is witnessing a transformation as foreign automakers recognize the importance of local technology partnerships to enhance their competitiveness in the Chinese market [12][16]. - The collaboration between traditional automakers and local tech firms is seen as a rapid way to improve their smart technology capabilities, which are becoming essential in the current market landscape [14][16]. - The shift in strategy among joint ventures, as exemplified by GAC Toyota, serves as a model for other foreign automakers in adapting to the evolving market demands in China [16][20].

Group 1 - GAC Toyota will launch extended-range versions of the new generation Highlander and Sienna, creating two exclusive platforms for Chinese users [2][5] - The collaboration with Huawei will expand from point-to-point vehicle-machine cooperation to a more diversified partnership, including HarmonySpace 5 cockpit and Huawei DriveONE motor [4][6] - GAC Toyota will also integrate into the Xiaomi automotive ecosystem, becoming the first international automaker to establish substantial cooperation with Xiaomi [7][9] Group 2 - GAC Group's flying car, GOVY AirCab, was unveiled with a price not exceeding 1.68 million RMB, featuring a carbon fiber composite body and multiple redundancy safety designs [10][13] - The GOVY AirCab aims to start demonstration operations in the Guangdong-Hong Kong-Macao area this year, with deliveries expected by the end of 2026 [13][15] Group 3 - Leap Motor opened its first store in Hong Kong, marking its entry into the market and competing with brands like BYD and Xpeng [16][17] - The company plans to accelerate its expansion into Southeast Asia and the Middle East, leveraging Stellantis Group's sales channels [17] Group 4 - Lynk & Co announced its first mid-to-large plug-in hybrid sedan named Lynk & Co 10 EM-P, featuring a 1.5T+DHT Evo+ dual-motor all-wheel drive system with a maximum power of 390kW [18][19] - The Lynk & Co 10 EM-P will be equipped with the latest NVIDIA Thor chip and laser radar, boasting a computing power of 700 TOPS [19]