SAIC and Huawei: A New Era in Electric Vehicles

The electric vehicle (EV) market in China is set to witness a significant shift with the upcoming launch of a new intelligent electric vehicle brand, Shangjie, a collaboration between SAIC Motor and Huawei Technologies. This strategic partnership aims to leverage the strengths of both companies to create a competitive and innovative product that caters to the growing demand for affordable, intelligent EVs.

SAIC Motor, one of China's largest automakers, has been facing intense competition and declining sales in recent years. The company's fuel vehicle sales have been decreasing, and its new energy brands have not yet grown into major players. Facing this challenging market landscape, SAIC seeks to transform its business and find new growth opportunities in the EV market. The partnership with Huawei offers a promising avenue for SAIC to achieve this transformation.

Huawei, a global leader in telecommunications and consumer electronics, has been expanding its presence in the automotive industry through its Harmony Intelligent Mobility Alliance (HIMA). The alliance has already spawned four vehicle brands: Aito with Seres Group, Luxeed with Chery Automobile, Stelato with BAIC BluePark Energy Technology, and Maextro with JAC Motors. These brands have been priced between CNY230,000 and CNY1 million (USD31,707 and USD137,855), targeting the premium market segment.

The new Shangjie brand, however, will focus on a younger market with vehicles priced between RMB 170,000 and RMB 250,000, making it the most affordable HIMA model to date. This strategic shift allows Huawei to cover both budget and premium models, expanding its market potential and addressing the growing demand for affordable, intelligent EVs.

The first Shangjie model, codenamed ES39, will be based on SAIC's Roewe brand and will feature two pure electric versions using Huawei's cockpit and intelligent driving systems. The car is expected to be launched in the fourth quarter of this year, with a price range of CNY150,000 to CNY250,000 (USD20,678 to USD34,464). This competitive pricing strategy aims to attract a significant number of consumers who value intelligent features and affordability.

Huawei's HarmonyOS and intelligent driving technologies will play a significant role in differentiating Shangjie from other electric vehicle brands. These advanced features are highly sought after by consumers, as demonstrated by the success of other EV brands that have embraced intelligence as a key selling point. By offering a more affordable electric vehicle with advanced intelligent driving technologies and HarmonyOS, Shangjie is likely to attract a substantial share of the market.

The collaboration between SAIC and Huawei presents an opportunity for both companies to consolidate their brands, expand their reach, and leverage each other's strengths to succeed in the competitive electric vehicle market in China. The new electric intelligent vehicle brand, Shangjie, fits into the broader market landscape by targeting a younger market with affordable, intelligent vehicles, addressing the growing demand for sustainable and technologically advanced transportation options.

As the electric vehicle market continues to evolve, the partnership between SAIC and Huawei is poised to shape the future of the industry in China and beyond. The success of Shangjie will depend on the companies' ability to execute their strategic vision, innovate, and adapt to the changing market landscape.