Photo source: Duge

Photographed at the Beijing Auto Show in April 2024

Less than a month after its official launch, EnjoyAuto S9, the first model jointly developed by Beijing Automotive Group BluePark New Energy Technology Co., Ltd. (BJEV) and Huawei, was embroiled in a "test" controversy, prompting the official to issue an emergency statement.

The controversy stemmed from a recent "test" conducted by a car blogger with over 2 million followers on Sina Weibo, who performed a high-speed ramp jump on a public road with the EnjoyAuto S9. The blogger claimed that after the ramp jump, the vehicle "could not maintain a straight path and veered to one side," sparking widespread online discussion.

In response, EnjoyAuto quickly issued a statement stating that after data analysis and multiple retests, they deemed the blogger's conclusion to be subjective and misleading to consumers. EnjoyAuto argued that the blogger's "test" involved intentional driver intervention, including turning the steering wheel to the right and then correcting to the left, which caused the vehicle to sway.

With the statement's release, the incident gradually subsided. Taking advantage of the momentum, EnjoyAuto announced another piece of good news on August 26, stating that over 8,000 pre-orders had been received within 20 days of the model's launch.

While this seems like a promising start, pre-orders do not necessarily translate into final sales figures. Prior to EnjoyAuto S9, Huawei's partnership with Chery Automobile resulted in the Zhide S7, which also enjoyed a strong start with over 5,000 pre-orders on its launch day. However, sales have since tapered off, averaging just over 2,600 units per month this year.

The market eagerly awaits to see if EnjoyAuto's sales trajectory will mirror that of Wenjie, which experienced explosive growth, or if it will follow the path of Zhide, which failed to sustain its initial momentum.

1

Multiple comparisons to BBA●

Regarding the EnjoyAuto brand, the National Intellectual Property Administration's website shows that Huawei Technologies Co., Ltd. filed for the registration of the "EnjoyAuto" trademark as early as May last year, under the international classification of "12-Means of Transport."

During the Guangzhou Auto Show in November 2023, Yu Chengdong, Executive Director of Huawei, CEO of Huawei Device BG, and Chairman of Huawei Intelligent Automotive Solutions BU, revealed in an interview with the media that following Wenjie and Zhide, two more "Jie" brands would be introduced, one from BJEV and the other from JAC Motor.

Around the same time, the 1865th Trademark Announcement of the Trademark Office of the National Intellectual Property Administration showed that Huawei Technologies Co., Ltd. had transferred multiple "STELATO" trademarks to BJEV, and the transfer/assignment application had been approved. At the time, sources claimed that "STELATO" was the English name of Huawei's smart selection brand in partnership with BJEV.

Subsequently, in February this year, BJEV eagerly announced on its investor interaction platform that its first "EnjoyAuto" series model, developed in partnership with Huawei's smart selection mode, would be launched into the market that year. In March, the Ministry of Industry and Information Technology disclosed the declaration information for the EnjoyAuto model, naming it EnjoyAuto S9.

Everything progressed smoothly, and in July, EnjoyAuto S9 officially debuted in Huawei stores. On August 6, EnjoyAuto S9 was officially launched, with the EnjoyAuto S9 Max priced at 399,800 yuan and the EnjoyAuto S9 Ultra priced at 449,800 yuan. As Beijing's first executive luxury flagship sedan in the automotive industry, it fills a gap in the market.

During the launch event, EnjoyAuto S9 was repeatedly compared to established luxury automakers such as BMW and Mercedes-Benz. "People used to say 'drive a BMW, ride a Mercedes-Benz,' but now you can do both with the S9," Yu Chengdong remarked, believing that EnjoyAuto S9 lived up to the phrase "far ahead."

Yu Chengdong even shared his personal experience while introducing the zero-gravity seats in the rear of EnjoyAuto S9, stating that while he used to struggle to sleep in a Maybach, he slept very well in the rear of EnjoyAuto S9 during a recent business trip to Beijing, thoroughly enjoying the experience.

In fact, not only on the day of its official launch but also during the pre-launch hype, Yu Chengdong repeatedly mentioned that EnjoyAuto S9 was positioned to compete with the Mercedes-Benz S-Class, BMW 7 Series 750Li, and Audi A8L. The top luxury sedans from BBA were all named.

He was also quite confident about EnjoyAuto S9's future performance. During a June livestream, when asked about when HarmonyOS Intelligent Driving would surpass BBA in all aspects, Yu Chengdong said that Wenjie M9 was already the top choice in the over 500,000 yuan segment, and he believed that once EnjoyAuto S9 entered the market, it would join Wenjie M9 as the first choice in the high-end vehicle segment.

However, it is a well-known fact that high-end pure electric vehicles are difficult to sell, and high-end pure electric sedans are even more challenging. While EnjoyAuto S9 aims to compete with BBA's fuel-powered vehicles, it may also want to consider the sales performance of competitors like NIO ET7, BMW i5, and Mercedes-Benz EQE, which have not been impressive. Achieving the top spot in the high-end sedan segment will not be easy.

2

New hope for BJEV●

Compared to Huawei's confidence, BJEV, the company behind EnjoyAuto, may be more apprehensive. After all, in addition to EnjoyAuto, Huawei also has Wenjie in partnership with SF Motors and Zhide in partnership with Chery, as well as an upcoming partnership with JAC Motor for Aojie. However, BJEV does not have a stronger "chip" to play.

BJEV is an innovative technology company focused on new energy vehicles. Its subsidiary, Beijing Electric Vehicle Co., Ltd. (BJEV), is China's first independently operated company and the first to obtain a new energy vehicle production license. BJEV previously had two new energy vehicle brands: BEIJING and ARCFOX.

Initially, BJEV was a pioneer among domestic new energy vehicle companies. When new energy vehicles were not yet widespread and new forces had not yet emerged, BJEV leveraged its strong "national team" background and the development dividend of ride-hailing services to quickly establish a foothold in the B-end market, including taxis and ride-hailing vehicles.

In 2019, BJEV sold 150,600 pure electric vehicles, securing the top position in domestic pure electric vehicle sales and maintaining this position for seven consecutive years. Unfortunately, this achievement failed to hold steady as the market evolved.

Subsequently, ARCFOX, BJEV's high-end smart new energy vehicle brand, also struggled to gain a foothold in the new energy vehicle market. Last year, ARCFOX sold 30,016 new vehicles, averaging only around 2,500 units per month. This year, ARCFOX has made significant progress, with sales exceeding 8,000 units in June and again in July.

However, even so, ARCFOX still struggles to compete with other players that sell tens of thousands of vehicles per month, and BJEV continues to face losses.

Data shows that BJEV's net profits attributable to shareholders for 2020-2023 were -6.482 billion yuan, -5.244 billion yuan, -5.465 billion yuan, and -5.4 billion yuan, respectively, amounting to cumulative losses of approximately 22.6 billion yuan over four years. This trend has continued into the first half of this year, with a net loss of 2.571 billion yuan.

In this context, EnjoyAuto's importance becomes even more apparent. BJEV urgently needs EnjoyAuto to open up the high-end new energy vehicle market and drive sales, ultimately turning losses into profits.

At the EnjoyAuto S9 launch event, Zhang Jianyong, Chairman of Beijing Automotive Group, stated, "In this collaboration with Huawei, we have prioritized our core strategies, leveraging all the advantages of BJEV's R&D, production, parts services, and trade across the entire industrial chain to fully support EnjoyAuto S9."

Furthermore, Zhao Ji, BJEV's Secretary of the Board, emphasized the company's commitment to Huawei, noting that their interests are deeply intertwined, and future cooperation will be further deepened. Currently, BJEV's EnjoyAuto Super Factory has a reserved capacity of 300,000 units.

It is undeniable that in recent years, Huawei, which does not manufacture cars, has made rapid strides in the automotive market, and the popularity of Wenjie has heightened market expectations for Huawei's smart selection model. However, it remains to be seen whether the third "Jie" brand can help BJEV reverse its fortunes.

3

Can it become a blockbuster?●

According to the environmental impact assessment report previously disclosed by Beijing Electric Vehicle Co., Ltd., EnjoyAuto S9's sales targets for 2024 to 2028 are 60,000, 120,000, 120,000, 96,000, and 84,000 units, respectively, totaling 480,000 units over five years.

This is not a small number, and for BJEV, EnjoyAuto S9 has the potential to catalyze a resurgence in its position.

Firstly, with Huawei's empowerment, EnjoyAuto S9 has already garnered significant attention, laying the foundation for it to become a popular model. Secondly, from a product perspective, every design aspect of EnjoyAuto S9 is aimed at competing with BBA, including its distinctive appearance, spacious cabin, and advanced Huawei high-level intelligent driving system. Many key indicators are superior to those of established luxury cars.

However, EnjoyAuto S9 faces numerous challenges. Firstly, the market segment it belongs to is still relatively niche. Secondly, there are many competitors vying for the same space.

In recent years, while the new energy vehicle market has experienced explosive growth, and the market share of luxury electric vehicles has continued to increase, many new and established players are stepping up their layouts. Nevertheless, the share of pure electric sedans remains unsatisfactory, and luxury pure electric sedans are even more difficult to sell.

Take NIO ET7 as an example. It is considered one of the leading luxury pure electric sedans priced above 350,000 yuan. However, according to Autohome data, NIO ET7's cumulative sales this year have only reached 4,069 units, equivalent to an average monthly sales volume of only three digits. Other models like Mercedes-Benz EQE have even seen monthly sales dip into single digits.

For EnjoyAuto S9, even if it lives up to the hype in all aspects as advertised, and has secured over 8,000 pre-orders within 20 days of its launch, it is still uncertain whether it can surpass NIO and become the next Wenjie in terms of future sales. After all, it takes time to build brand influence and reputation.

For comparison, we can look at Wenjie M9's pre-order data. Since its launch six months ago, Wenjie M9 has surpassed 100,000 pre-orders, setting a new record for luxury car orders in the Chinese market and firmly establishing itself as the top luxury car priced above 500,000 yuan. Compared to Wenjie M9's impressive pre-order figures, EnjoyAuto S9's seem relatively modest.

Furthermore, time will tell whether EnjoyAuto S9 can avoid repeating the mistakes of Zhide S7. Launched and delivered in November last year, Zhide S7 was highly anticipated at the time, with Yu Chengdong claiming that it surpassed models like Tesla Model S and Mercedes-Benz EQE in specifications. The market also responded positively, with over 5,000 pre-orders placed on the launch day alone.

Unfortunately, Zhide S7 encountered delivery issues soon after its launch, with problems such as factory relocations and supply shortages leading to a lack of momentum. Even the announcement of a second launch in April this year failed to revive sales. In the first seven months of this year, Zhide S7 sold a cumulative total of 18,500 units, averaging only around 2,639 units per month.

EnjoyAuto must remain vigilant and avoid overconfidence. The recent high-speed ramp jump "test" may just be a small test, and there is still much work to be done on the path to becoming the next blockbuster.

Author: Lili

Source: CarVisibility

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