After Xiaomi, Huawei now eager to jump into EVs, starts manufacturing batteries for partner manufacturer

After encountering setbacks due to semiconductor shortages and manufacturing issues, the Luxeed S7 electric sedan the result of a collaborative effort between Huawei Technologies and Chery Automobile, has finally started getting delivered en masse to buyers, according to a senior Huawei executive.

Richard Yu Chengdong, chairman of Huawei’s intelligent automotive solution business unit, announced the progress in a Weibo post on Saturday. He mentioned that a significant number of Luxeed S7 vehicles have been manufactured and are now en route for delivery to customers.

Earlier reports indicated that Huawei had anticipated resolving the delivery hitches for the premium electric vehicle by April. The delays stemmed partly from production challenges related to a computing unit provided by Huawei, which resulted in complaints from Chery.

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The S7 sedan marks the debut model for Chery’s Luxeed EV brand and has garnered approximately 20,000 orders as of November 28. Its price starts from 249,800 yuan (or approximately US$34,600).

Despite these challenges, Huawei’s revenue witnessed its fastest growth in four years in 2023, largely attributed to a resurgence in its consumer segment and income from emerging businesses such as smart car components. These developments reflect Huawei’s ongoing efforts to navigate through US tech sanctions.

Furthermore, Huawei had previously announced plans to spin off its smart car unit into a separate entity. Yu indicated that the unit is expected to achieve profitability from April onwards, following substantial losses incurred over the past year.

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The successful rollout of the Luxeed S7 electric sedan despite initial obstacles underscores the resilience and determination of both Huawei and Chery amidst a challenging market environment. With the commencement of mass delivery, customers can now anticipate receiving their orders, marking a significant milestone in the development of electric vehicles in the Chinese market.

(With inputs from agencies)