Lead | Introduction

JIYUE Auto, which began with a high - profile launch as a Baidu - Geely joint venture, has now found itself in a tough spot, delivering just over 10,000 units annually. In a bid to revitalize its assets, it has initiated pre - reorganization proceedings, aiming to bring in new strategic investors. This move is akin to a 'financial lifesaver', as it gives the company more time under court protection to negotiate with potential investors and avoid the domino effect of direct bankruptcy. For JIYUE Auto, this is a strategic pause to catch its breath. Can this automaker, once full of dreams, find its way through the fog and achieve a turnaround with the help of capital?

Published by | Heyan Yueche Studio

Written by | Cai Yan

Edited by | He Zi

Full text: 1,750 characters

Reading time: 3 minutes

Once dubbed the 'Chosen One', JIYUE Auto is now going through the pain of a fall from grace. This cross - border project, which carried Baidu's dream of intelligent driving and Geely's automotive know - how, has seen the capital market shift from enthusiasm to rationality in just four years. Ultimately, it has stumbled in the fiercely competitive race of smart electric vehicles (EVs).

△ 'Chosen One' JIYUE Auto Falls from Grace

Why Has JIYUE Auto, the 'Chosen One', Underperformed?

Backed by the combined 'aura' (the Chinese term is retained for cultural context, but translated conceptually here) of Baidu and Geely, JIYUE Auto's launch was met with high expectations. It was seen as a prime example of cross - border collaboration between a tech giant and an automotive leader. In 2021, JIDU Auto (JIYUE's predecessor) made a splashy debut. It leveraged Baidu's AI algorithms, Apollo autonomous driving technology, and Geely's SEA architecture. It quickly moved from registration and financing to unveiling the 'car robot' concept car ROBO - 01. In August 2023, it officially rebranded as JIYUE and launched two mass - produced models, JIYUE 01 and JIYUE 07, showing an impressive start.

However, the market didn't warm up to JIYUE's advanced 'car robot' concept, and its performance quickly took a nosedive. In the first 11 months of 2024, the cumulative sales of all JIYUE models reached only about 14,000 units, with the inaugural model JIYUE 01 selling just 9,388 units. The JIYUE 07, launched in September 2024, saw sales drop to 1,936 and 1,030 units in October and November respectively, consistently ranking at the bottom of the industry. This poor performance directly triggered a severe capital chain crisis. In December 2024, Baidu stopped further funding, leaving a planned RMB 3 billion financing unfulfilled. The company faced a 'dissolution crisis', with nationwide dealerships closing, a large number of employees leaving, and ultimately, a desperate move to seek pre - reorganization.

△ Late 2024: Nationwide Closure of JIYUE Dealerships

It's no overstatement to say that JIYUE was a fleeting phenomenon. JIYUE Auto CEO Xia Yiping later reflected that underestimating capital requirements, internal friction caused by frequent personnel changes, and a management style that dampened team vitality were the key factors behind the company's downfall. In contrast, Huawei, another tech player in the smart EV arena, took a completely different approach. Instead of following Baidu's joint - venture model, Huawei partnered with Seres, Chery, and others through its HI and HarmonyOS Smart Travel modes. It was deeply involved in product definition, intelligent technology solutions, and sales channels without seeking control. This approach allowed Huawei to export its core technologies while leveraging the strengths of traditional automakers in manufacturing, supply chains, and market expansion.

△ JIYUE 01 Currently Suspended from Sales

Can JIYUE Auto Survive?

Amid the accelerating shakeout in the smart EV industry, JIYUE Auto's initiation of pre - reorganization is a critical self - rescue attempt to cross the survival threshold. However, when we look at the current trends in smart automotive development and the logic of the capital market, JIYUE's path to a genuine revival is still full of challenges.

On the one hand, JIYUE's core technological assets, especially Baidu's Apollo - powered advanced intelligent driving, the pure vision technology route, and its future collaboration with NVIDIA based on the DRIVE Thor platform, still hold significant appeal and imagination for potential investors who are eager to enhance their intelligent capabilities.

On the other hand, JIYUE faces enormous and tangible obstacles to a rebirth. First, a staggering RMB 7 billion debt hole is the primary hurdle for any potential acquirer. Second, the collapse of brand trust is a nearly irreparable internal wound. From stranded after - sales service for owners and broken promises on rights and benefits to unpaid employee salaries and supplier debts, JIYUE's overall credibility is on the verge of collapse. Even with a new capital infusion, rebuilding confidence among consumers, partners, and the market will be an enormous challenge. Moreover, the competitive landscape has changed dramatically. During JIYUE's hiatus, leading intelligent driving systems like Huawei ADS and XPENG XNGP have rapidly evolved, narrowing JIYUE's window of technological lead. Coupled with a capital market that now evaluates new EV players with increasing rationality and strictness, prioritizing self - sufficiency and clear profitability prospects over mere technological stories, JIYUE faces an uphill battle.

JIYUE Auto's case serves as a stark warning to all smart EV contenders: automakers must have extreme foresight and strict control over their capital chains to endure the long R&D and market cultivation periods. Stable and reliable user experiences and robust after - sales service are prerequisites for consumers to choose premium new energy vehicles.

△ JIYUE Faces Immense and Tangible Obstacles to Rebirth

Commentary

JIYUE's case reflects the collective dilemma of current new EV makers. For the rapidly evolving automotive market, capital and technology are merely entry tickets; the real test lies in building a sustainable business ecosystem. Despite being initially placed on a high pedestal, JIYUE's journey shows that automaking is a marathon. How much capital, technological accumulation, and market - user respect are truly needed? Are 'JIYUEs' building cars or chasing dreams?

(This article is original to Heyan Yueche and may not be reproduced without authorization.)