Wenjie, Zhijie, and Xiangjie, though originating from different joint venture partners, Huawei seems to want to give each "Jie" a unified style.

For instance, the Xiangjie S9, which debuted in 2024, seems to bear some resemblance to the Wenjie S9 or Zhijie S7 in terms of headlight design. Since it inherits the headlight design of the Wenjie M9, it naturally includes a million-pixel smart projection headlight.

Overall, the Xiangjie S9 boasts dimensions of 5160mm×1987mm×1486mm, a wheelbase of 3050mm, and an available interior space of up to 3460mm, positioning itself against the long-wheelbase versions of the Mercedes-Benz S-Class, BMW 7 Series, and Audi A8. Its price is also positioned in the luxury segment, with a pre-order price ranging from 450,000 to 550,000 yuan.

Although the product has not yet been officially launched, preparations for manufacturing-related matters are already in full swing. BAIC BJEV plans to upgrade and transform its Beijing factory, dedicated to producing Xiangjie models.

Will the Xiangjie, expected to hit the market in August this year, compete with the Zhijie S9?

01. The Two-way Partnership between Huawei and BAIC BJEV

Regarding the design of the Xiangjie, we can gain some insights from previously leaked spy shots: a low and flat profile, along with a slender hood, aligns with most consumers' expectations for the appearance of an executive sedan.

Inside the new car, a light-colored interior is adopted, with a double-layer design for the instrument panel. The layout of other parts is similar to that of the previously released Zhijie S7.

In addition, the Xiangjie S9 debuts with Huawei's advanced intelligent driving system ADS 3.0, which was released at the Beijing Auto Show in April this year. It supports Navigation Cruise Assistance (NCA) from parking space to parking space, eliminating the need to memorize parking spaces and routes. Intelligent driving can be achieved by simply using navigation to reach any parking space or route.

Meanwhile, ADS 3.0 also incorporates valet parking and valet charging functions, allowing the vehicle to autonomously find charging stations, charge, and return to its parking space.

Of course, there's much more than just these cutting-edge technologies. Features like a high-strength Xuanwu frame body, integrated die-cast rear body, Tuling intelligent chassis, HarmonyOS 4.0 smart cabin, nationwide ADS 2.0 advanced intelligent driving assistance system, and AR-HUD head-up display are likely to be standard on this 500,000-yuan-level vehicle.

However, as BAIC BJEV actively layouts its business, the sales pressure on BAIC BJEV's new energy vehicles is gradually becoming apparent.

Relevant data shows that in 2023, BAIC BJEV sold 92,172 vehicles throughout the year, representing a year-on-year increase of 83.69%. Although the growth is rapid, the sales figures are not impressive in the overall new energy vehicle market.

Most importantly, among these sales figures of over 90,000 vehicles, the vast majority came from BEIJING-branded pure electric models, which are mainly targeted at the B-end market.

If we review BAIC BJEV's performance over the past four years, it's not difficult to find that the company has accumulated losses of over 22 billion yuan. Combined with sales figures, BAIC BJEV loses more than 50,000 yuan for every vehicle sold.

BAIC BJEV attributed its continuous losses to:

Firstly, the increasingly fierce competition in the new energy vehicle market. The company has been continuously investing in technology research and development and channel construction to enhance its comprehensive strength, which has had a certain impact on its short-term performance.

Secondly, the company's product sales are still in the growth stage, with high costs and incomplete manifestation of economies of scale.

However, for Huawei, its partnership with BAIC BJEV undoubtedly complements its intelligent driving products.

Combined with existing models, HarmonyOS Intelligent Selection has covered sedans and SUVs, building a product matrix ranging from 200,000 to 500,000 yuan. With the upcoming release of the second Zhijie model, Huawei's product barriers will be further strengthened.

To continuously resist the onslaught of Tesla's FSD, Yu Chengdong stated that Huawei employees have compared Tesla's FSD and Huawei's ADS high-level intelligent driving systems in cities like San Francisco, USA, and Toronto, Canada. Huawei is confident in "beating its competitors" in the competition after Tesla's FSD enters the Chinese market.

As Huawei's Intelligent Selection vehicle business and Intelligent Vehicle BU achieved profitability in the first quarter of this year, Huawei will continue to invest more research and development resources to maintain its leading technological advantages.

However, the unpredictable nature of the new energy vehicle industry means that only by continuously avoiding mistakes and collaborating with manufacturers with high innovative capabilities can Huawei ensure that its technological advantages translate into actual results, which will become a factor in sustaining high sales of its products.

02. Is BAIC BJEV, Huawei's old partner, relying on Huawei for its survival?

As Huawei's old partner, BAIC BJEV attaches great importance to this new collaboration.

Previous announcements stated that to further deepen the partnership, BAIC BJEV will engage in intelligent selection cooperation with Huawei Terminal Co., Ltd., based on its existing strategic cooperation with Huawei Technologies Co., Ltd.

To meet production and operation needs, BAIC BJEV purchased equipment assets from BAIC Foton Motor Co., Ltd.'s Beijing Multi-function Plant and implemented production line technical transformations. It also leased land, plants, and ancillary facilities from the Miyun Plant to meet the company's new product production planning requirements.

Based on BAIC BJEV's previously released production and sales reports, BAIC BJEV's new energy vehicles are not as robust as before, but they have not reached the point of being discontinued.

For example, in the case of the ARCFOX brand, according to data from the China Passenger Car Association (CPCA), the Alpha S and Alpha T combined sold around 3,000 vehicles in the first quarter of last year. However, these two models have practically disappeared from the market in the first quarter of this year, replaced by two less expensive ARCFOX models, the Kala and Alpha T.

Therefore, a good product may turn things around, and the Huawei Xiangjie S9 may just be BAIC BJEV's "dream car".

Some have described BAIC's current situation with four words: "too big to fail." As a state-owned enterprise in the automotive industry, why hasn't BAIC advanced with the help of the new energy track, but instead regressed?

Judging from the current situation, BAIC's sluggish performance seems to be temporarily "slacking off," waiting for Huawei to administer a strong dose of medicine.

So, will Xiangjie really help BAIC achieve its dream of taking off from the ground?

The old Wenjie M7 experienced a rapid surge in sales during its initial launch, but then quickly declined, leaving it unattended by early 2023. Sales only rebounded after the new model emerged.

Currently, the Wenjie M5, which is still on sale and positioned lower than the M7, should theoretically have higher sales. However, in reality, sales for this model in January and February were less than 1,000 vehicles.

Various indications suggest that Huawei is not a "magic wand." Its product design can also encounter issues, and not every collaboration with major manufacturers will be successful. Therefore, there is no guarantee that the Xiangjie S9 will completely triumph.

After all, in the Chinese automotive circle, perhaps only Thalys has fully entrusted its dominance to Huawei. Shortly after the launch of the Zhijie S7, rumors of disagreement emerged between the two manufacturers, and the same applies to Changan and Huawei.

Large traditional manufacturers already have a mature new energy vehicle technology system, and it is indeed unlikely for them to fully hand over their reins to Huawei.

However, as a state-owned enterprise, BAIC may encounter another problem.

The news of "separately calculating the new energy business of national auto companies" is gaining momentum. First Automotive Works (FAW), Shanghai Automotive Industry Corporation (SAIC), and Guangzhou Automobile Group (GAC) have greater autonomy and fewer burdens in developing new energy vehicles. Under such circumstances, these manufacturers have a stronger desire to control their own "soul." Although BAIC is also a member of the national team, it may not necessarily accept being dominated by Huawei.

If BAIC continues to rely on its own technology without Huawei's support, it may be difficult to achieve results. However, if it expands its cooperation with Huawei, as a state-owned enterprise, the operational difficulties will increase, and what should it do with its accumulated new energy-related assets?

The success of Wenjie may be difficult to replicate for Xiangjie.

References:

Huawei HarmonyOS Intelligent Mobility welcomes a new member, Xiangjie, with a starting price of 400,000 yuan. — Aifanr

New Wenjie M7 Ultra starts at 289,800 yuan, and the Xiangjie S9 is expected to be released in August this year. — Tian Zhe, Zuiqianxian

Huawei Intelligent Selection Vehicle Xiangjie S9 Exposed, Can It Replicate the Success of Wenjie M9? — TechFox

The bumpy road of ARCFOX, with revenues of 1.5 billion yuan and losses of 1 billion yuan, BAIC BJEV is once again suffering heavy losses! — Cheyou Guancha