Huawei's Yu Chengdong on Hongmeng Smart Mobility's Cost and Market

TapTechNews, June 14. At the 2024 China Auto Blue Book Forum this morning, Yu Chengdong, Executive Director of Huawei, Chairman of the Terminal BG, and Chairman of the Intelligent Vehicle Solution BU, gave a speech and talked repeatedly about the cost issues of the Hongmeng Smart Mobility vehicles.

Yu Chengdong disclosed that basically the models under 300,000 Chinese yuan of Hongmeng Smart Mobility suffer losses, but fortunately, the proportion of high-end products is more than 80%, and the sales volume of Hongmeng Smart Mobility is 159,100 units from January 1 to June 9 this year, with an average sales price close to 400,000 (more than 390,000) Chinese yuan, and people are more willing to choose the high-end version, so Huawei and its cooperative auto companies can still make a profit.

Yu Chengdong said: This sales volume is actually very small, it's self-consolation. Others sell several hundred thousand units a month, and we sold 150,000 units in five months, which is nothing at all. But we don't need to be too humble either. Our average price is almost 400,000 Chinese yuan. In China, in the passenger car market above 300,000 Chinese yuan, there is an annual volume of three to four million units, mainly the BBA market, and these 150,000 units mainly snatched the traditional luxury car market of BBA.

When it comes to low-cost vehicles, Yu Chengdong indicated that they temporarily do not consider launching vehicles under 200,000 Chinese yuan because they currently do not have the ability to achieve a cost under 200,000 Chinese yuan.

TapTechNews noticed that Yu Chengdong still didn't mention far ahead when speaking. He indicated that the Huawei system will do better, and product quality, etc. should achieve those four words.