Core Viewpoint - The Chengdu Auto Show in 2025 showcased the absence of ultra-luxury brands, with the highlight being the debut of Huawei's Hongmeng Zhixing featuring a full lineup of vehicles, demonstrating a comprehensive market coverage from mainstream to ultra-luxury segments [1][3]. Group 1: Product Launch and Market Response - Hongmeng Zhixing's exhibition area reached 3,000 square meters, making it one of the most crowded areas at the show, with ten vehicles from the "Five Realms" series on display [3]. - The pre-sale of the new models, including the Zhijie S7 and R7, saw over 10,000 orders within 24 hours, while the H5 model surpassed 50,000 orders in just 18 hours [5]. - The luxury model, the Zunjie S800, achieved over 12,000 pre-orders within three months of its launch, setting new sales records for million-level luxury cars in China [5]. Group 2: Strategic Positioning and R&D Investment - Hongmeng Zhixing's strategy differs from traditional automakers by adopting a "difficult first, easy later" approach, establishing a reputation with high-end products before expanding to broader markets [7]. - Huawei's R&D expenditure reached 96.95 billion yuan in the first half of 2025, accounting for 22.7% of its revenue, indicating a strong commitment to technological advancement [7]. - As of August 2025, Hongmeng Zhixing's assisted driving system has accumulated over 1.67 billion kilometers of driving, preventing more than 215,000 potential collisions [7]. Group 3: Market Differentiation and Ecosystem Development - The introduction of the "Five Realms" brand strategy allows Hongmeng Zhixing to cover diverse user travel needs through a systematic approach, leveraging Huawei's full-stack technology [9]. - The brand aims to penetrate the mass market by accurately identifying core user needs while maintaining cost efficiency, with strong confidence expressed by both Huawei and SAIC regarding the market potential [8][9]. - The differentiation lies in the ability to respond to various user demands through technology, with a focus on safety, space, and cost balance in the mainstream family market [9]. Group 4: Competitive Landscape and Future Outlook - The automotive industry's competitive focus has shifted from mechanical specifications to intelligent capabilities, with Hongmeng Zhixing redefining the value system of smart vehicles [12]. - The company has established a unified architecture that integrates smart cockpit, assisted driving, and electric drive systems, enhancing user experience and enabling rapid iterations [14]. - As the competition enters a new phase, the emphasis is on ecosystem efficiency, with Hongmeng Zhixing's comprehensive system capabilities positioning it to redefine competition rules for the next decade [15].