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Currently, data released by Chongqing Xiaokang and BAIC New Energy, which cooperate with Huawei, show that their car sales from May to July were not very optimistic, and their attempts to sell cars through Huawei's halo have suffered setbacks. This is also a significant blow for Huawei, which strives to make a difference in the automotive industry.

According to data disclosed by the media, from May to July this year, the sales volume of the Celis SF5 launched by Chongqing Xiaokang was 100, 414, and 303, respectively. The sales volume of the Jihu Alpha launched by BAIC New Energy from May to July this year was 123, 179, and 491, respectively, which was not significantly improved compared to their sales volume last year.

BAIC BJEV has made remarkable achievements in the domestic new energy vehicle market. In early years, it competed with BYD for the top spot in the domestic new energy vehicle market. However, after reducing subsidies for new energy vehicles in the second half of 2019, BAIC BJEV rapidly declined; Chongqing Xiaokang was formerly a van company that has sought transformation to enter the new energy vehicle market in recent years, but its performance has not been ideal.

Since the third quarter of 2020, due to well-known reasons, Huawei's largest business, the mobile phone business, has rapidly declined, while developing its automotive business as an important new business. As a strong company, it has successively spread rumors with many automotive companies, and finally reached cooperative relationships with Chongqing Xiaokang and BAIC New Energy. The two automotive companies hope to develop their new energy vehicle business through Huawei's popularity in the domestic market.

Among them, the cooperation between Chongqing Xiaokang and Huawei is quite in-depth. Huawei not only provides technical support, but also quickly renovates several Huawei mobile phone retail stores to help sell the Celes SF5. However, from the above sales data, it can be seen that the sales of new energy vehicles by both automobile companies are not ideal.

This may be due to the fact that domestic consumers still pay more attention to the technology of the car itself when selecting and purchasing cars, and consumers still prioritize the engine, vehicle quality, and automotive brand information. Huawei, Chongqing Xiaokang, and BAIC New Energy, which have less influence in the automotive industry, are cautious.

Consumers do not attach much importance to Huawei's emphasis on autonomous driving technology and Internet technology. In fact, even the first TSLA car to apply autonomous driving technology to actual use has not received much recognition from consumers. According to analysis, only about 30% of TSLA car consumers have purchased autonomous driving technology in markets outside China, and only about 10% of TSLA consumers in China have purchased autonomous driving technology, This may also lead consumers not to excessively consider Huawei's autonomous driving technology and Internet technology additions when choosing and purchasing Celis SF5 and BAIC Jihu.

The sluggish development of Huawei's and its partners' smart car business has had a significant impact on Huawei. The development of the smart car business is very important for Huawei. The results released by Huawei in the second quarter of this year show that revenue fell 38% year-on-year. The important reason is the rapid decline of the smart phone business, which was originally developed to compensate for the losses of the smart phone business, Today, Huawei is naturally disappointed by the poor development of the smart car business.

For this reason, Huawei has recently made significant adjustments to the personnel of its smart car business. Wang Jun, the former head of the smart car business and president, has changed his position to COO and reported to Yu Chengdong, which means that Yu Chengdong has taken full responsibility for Huawei's smart car business. Huawei may hope that Yu Chengdong, who has made outstanding achievements in the smart phone market, can turn the tide and promote the development of the smart car business, After all, both the automotive business and the smartphone business are 2C businesses. Perhaps Yu Chengdong's relevant experience in the smartphone market can help promote the development of the smartphone business.

Considering Huawei's past achievements in developing new businesses, such as servers, PCs, smartphones, and wearable businesses, it may be that Huawei will make a difference in the new energy vehicle market after adjustment. After all, it has achieved excellent results in previous times of adversity, and temporary setbacks will not discourage it.

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