Key Takeaways
– HarmonyOS Smart Selection (鸿蒙智行) launched the Shangjie H5, its most affordable model yet, priced from CNY 159,800 to CNY 199,800, with over 160,000 pre-orders.
– The new AITO M7 received a comprehensive upgrade, including pure electric and extended-range versions, with pre-orders exceeding 230,000 units, causing a temporary crash on Huawei Mall.
– SAIC Group President Jia Jianxu (贾健旭) praised Huawei Executive Director Yu Chengdong (余承东), nicknamed ‘Yu Dazui’, for driving ambitious product requirements that were successfully met.
– Analysts project HarmonyOS Smart Selection could achieve annual sales of 488,000 vehicles, leveraging these models to penetrate the competitive CNY 150,000-350,000 segments.
– The launches signal Huawei’s intensified focus on leveraging its intelligent driving technology to expand market share amid fierce competition from rivals like Li Auto and Tesla.
HarmonyOS Smart Selection Makes Strategic Push with New Model Launches
The electric vehicle landscape in China witnessed a significant shift as HarmonyOS Smart Selection (鸿蒙智行) unveiled two pivotal models at its autumn product launch event. The introduction of the Shangjie H5 and the全新问界M7 (new AITO M7) underscores Huawei’s aggressive strategy to dominate broader market segments. With pre-order numbers soaring into the hundreds of thousands, these launches highlight the growing consumer appetite for intelligently equipped, competitively priced EVs. The event not only showcased technological advancements but also emphasized the collaborative synergy between Huawei and manufacturing partner SAIC Group (上汽集团). As one of the most anticipated automotive events of the season, the response has set a bullish tone for HarmonyOS Smart Selection’s sales trajectory in the coming quarters.
SAIC Group President Jia Jianxu (贾健旭) highlighted the demanding standards set by Huawei Executive Director and Terminal BG Chairman Yu Chengdong (余承东), whose nickname ‘Yu Dazui’ (余大嘴) references his reputation for ambitious claims. Jia noted that Yu’s high expectations were met through rigorous development, resulting in vehicles that blend affordability with cutting-edge features. This partnership exemplifies how traditional automakers and tech giants are merging expertise to capture evolving consumer preferences. The HarmonyOS Smart Selection ecosystem continues to expand, now encompassing a wider price range to appeal to both budget-conscious buyers and premium seekers.
Shangjie H5: HarmonyOS Smart Selection’s Entry into the Mass Market
The Shangjie H5 represents a strategic move by HarmonyOS Smart Selection to tap into the high-volume CNY 150,000-200,000 segment. As the most affordable model in the ‘Five Realms, Ten Models’ portfolio, its launch is poised to democratize access to Huawei’s intelligent driving technology. With a starting price of CNY 159,800, the Shangjie H5 aims to compete directly with mainstream gasoline-powered SUVs while offering advanced EV capabilities. Industry analysts from Dongfang Securities (东方证券) have labeled the pre-order numbers ‘beyond expectations’, citing the vehicle’s balance of performance, intelligence, and value as key drivers.
Specifications and Pricing Details
The Shangjie H5 is positioned as a midsize SUV, measuring 4780mm in length, 1910mm in width, and 1664mm in height, with a wheelbase of 2840mm. It offers both extended-range and pure electric powertrains. The extended-range version boasts a CLTC comprehensive range of 1,360 km and a fuel consumption of 4.44 L/100 km, while the pure electric variant achieves up to 655 km on a single charge with an energy consumption of 13.4 kWh/100 km. This dual approach caters to consumers seeking flexibility amid China’s evolving charging infrastructure. The pricing strategy places it squarely in the heart of China’s passenger vehicle market, which accounts for approximately 20% of total sales in this price band, according to the China Passenger Car Association (乘联分会).
Market Reception and Pre-Order Analysis
Pre-orders for the Shangjie H5 surpassed 160,000 units within a month of its预售 (pre-sale) period, indicating strong consumer interest. Data from third-party platforms reveal that over 70% of pre-order customers are first-time HarmonyOS Smart Selection buyers, attracted primarily by Huawei’s intelligent technology. The integration of HUAWEI ADS 4 advanced driver-assistance system, featuring a 192-line lidar and 4D millimeter-wave radar, marks the first time this system has been deployed in a sub-CNY 200,000 vehicle. To meet demand, HarmonyOS Smart Selection has initiated pre-production for popular configurations, promising delivery within 1-4 weeks for matching orders. This rapid response strategy aims to capitalize on the initial sales momentum and convert interest into sustained market share.
New AITO M7: Reinventing a Former Best-Seller
The全新问界M7 (new AITO M7) underwent a significant overhaul, with an investment of CNY 4 billion over three years, as disclosed by Yu Chengdong (余承东). This model aims to reclaim its position as a sales leader in the CNY 250,000-350,000 SUV segment, where it previously achieved monthly sales of up to 30,000 units. However, competition has intensified, with rivals like Li Auto’s L6 and L7, Tesla Model Y, and Zhijie R7 eroding its market share. The new AITO M7 addresses these challenges through comprehensive upgrades in design, chassis, dimensions, and intelligent features, including the addition of a pure electric variant. HarmonyOS Smart Selection is betting on these enhancements to rejuvenate sales and strengthen its foothold in the premium segment.
Enhanced Features and Competitive Positioning
The new AITO M7 offers five-seat and six-seat layouts, along with extended-range and pure electric options across 12 variants, priced from CNY 279,800 to CNY 379,800. The pure electric version is equipped with a 100 kWh battery pack, delivering a range exceeding 700 km. This expansion into pure electric power broadens its appeal in a market increasingly favoring full electrification. Ping An Securities (平安证券) notes that the higher starting price, compared to the previous model’s CNY 249,800, reflects enhanced brand value and premium positioning. Despite the price increase, analysts believe the new AITO M7 could become a heavyweight contender in the CNY 300,000 category, leveraging Huawei’s brand equity and technological prowess.
Consumer Response and Sales Projections
Pre-orders for the new AITO M7 exceeded 230,000 units by September 22, prompting Yu Chengdong (余承东) to describe the response as ‘超乎想象’ (beyond imagination). The surge in interest temporarily crashed the Huawei Mall (华为商城), underscoring the model’s popularity. Guosheng Securities (国盛证券) anticipates that the new AITO M7 will contribute significantly to fourth-quarter sales, helping HarmonyOS Smart Selection rebound from a slowdown that saw year-to-date sales of approximately 42,000 units through July. To incentivize upgrades, HarmonyOS Smart Selection is offering a CNY 40,000 discount for existing owners of non-smart driving versions, a move likely to foster loyalty and drive adoption of newer technologies.
HarmonyOS Smart Selection’s Broader Market Strategy
The simultaneous launch of the Shangjie H5 and new AITO M7 illustrates HarmonyOS Smart Selection’s layered approach to market penetration. By covering both entry-level and mid-to-high-end segments, the brand aims to maximize its addressable market. The ‘Five Realms, Ten Models’ framework is designed to create a comprehensive product matrix that caters to diverse consumer needs. With cumulative sales reaching约296,000 units (approximately 296,000) in the first eight months of 2024, and August sales of around 46,000 vehicles, HarmonyOS Smart Selection is building momentum. The addition of models like the尊界S800 (Zunjie S800),问界M9 (AITO M9), and问界M8 (AITO M8) further enriches its portfolio, positioning the brand for sustained growth.
Expansion into New Segments
HarmonyOS Smart Selection is venturing into previously untapped segments with the Shangjie H5, achieving a ‘破圈’ (breakthrough) effect by attracting new customer demographics. The brand’s ability to leverage Huawei’s intelligent technology, marketing reach, and retail network, combined with SAIC Group’s manufacturing expertise, creates a formidable competitive advantage. Dongfang Securities (东方证券) estimates that the Shangjie brand could capture a meaningful share of the CNY 200,000-level market, enhancing overall profitability. This expansion is critical as Chinese EV competition intensifies, with brands racing to offer superior value propositions.
Sales Targets and Analyst Outlook
Conservative projections from brokerage firms suggest HarmonyOS Smart Selection could achieve annual sales of 488,000 vehicles in 2024. The brand’s focus on volume models like the Shangjie H5 and new AITO M7 is expected to drive this growth, supported by continuous product iterations and strategic pricing. Jiaolong International (交银国际) points out that the CNY 250,000-350,000 SUV segment is particularly competitive, but HarmonyOS Smart Selection’s technological edge could differentiate it. The successful launch events have reinforced confidence in the brand’s ability to execute its vision, though execution risks remain in scaling production and maintaining quality.
Industry Implications and Expert Insights
The launches have broader implications for China’s automotive sector, highlighting the convergence of technology and traditional manufacturing. Huawei’s deepening involvement in EVs through HarmonyOS Smart Selection signals a shift toward software-defined vehicles, where intelligent features become key selling points. Experts note that this trend is reshaping competitive dynamics, forcing incumbents to accelerate innovation. The emphasis on advanced driver-assistance systems (ADAS) and connectivity underscores the growing importance of tech integration in achieving market leadership.
Analyst Perspectives on Market Impact
Dongfang Securities (东方证券) emphasizes that the Shangjie H5’s success could disrupt the mainstream SUV market, while Ping An Securities (平安证券) views the new AITO M7’s pricing as a test of brand premiumization. Analysts agree that HarmonyOS Smart Selection’s ability to scale will depend on sustaining consumer interest beyond initial pre-orders. The high pre-order numbers indicate strong demand, but converting these into sustained sales requires efficient supply chain management and after-sales support. The competitive landscape, with players like Li Auto (理想) and Xiaomi (小米) launching rival models, means that continuous innovation is essential for maintaining momentum.
Competitive Dynamics and Future Outlook
The Chinese EV market is characterized by rapid product cycles and intense rivalry. HarmonyOS Smart Selection’s strategy of frequent updates and model expansions aims to stay ahead of curves. However, challenges such as pricing pressures and regulatory changes could impact profitability. The brand’s collaboration with SAIC Group provides manufacturing scale, but success hinges on executing a cohesive strategy across marketing, distribution, and technology deployment. As the market evolves, HarmonyOS Smart Selection’s focus on intelligent technology could become a key differentiator, potentially setting new standards for the industry.
Strategic Takeaways for Investors and Market Watchers
The launch of the Shangjie H5 and new AITO M7 marks a pivotal moment for HarmonyOS Smart Selection, demonstrating its capacity to innovate and capture market share. The strong pre-order numbers validate consumer confidence in Huawei’s technological ecosystem, while the expanded product range enhances the brand’s competitive positioning. For investors, these developments signal potential growth opportunities in China’s EV sector, though careful monitoring of execution and market response is advised. The coming quarters will be critical in determining whether HarmonyOS Smart Selection can translate initial excitement into lasting success.
Market participants should watch for sales data releases and competitive reactions to gauge the long-term impact. HarmonyOS Smart Selection’s ability to maintain its technological edge while managing costs will be key to sustaining growth. As the brand continues to evolve, its strategies could offer valuable insights into the future of intelligent electric vehicles in China and beyond. Stakeholders are encouraged to stay informed through official channels and analyst reports to make data-driven decisions in this dynamic landscape.