"There's a massive pit up ahead. Others have already taken the plunge, but Deepal refuses to believe it and dives in headfirst. Once inside, they realize it's a colossal pit indeed." In early January 2026, an internal employee of Deepal Auto vented their frustrations to Mirror Pro. The 'pit' in question refers to the endeavor of emulating Huawei and adopting its business model. Back in September of the previous year, Deepal Auto embarked on a comprehensive journey to learn from Huawei, transitioning from initial product collaboration to bringing in executives from the Huawei ecosystem and implementing Huawei's organizational framework, marketing system, and other strategies in a bid to replicate Huawei's prowess and break through current market barriers.

This transformation was underscored by a change in CEO. On September 5, 2025, Deepal Auto announced a shake-up in its core management team: former CEO Deng Chenghao was elevated to chairman, while Jiang Hairong, ex-CMO of Honor in China, stepped in as CEO. Prior to Jiang Hairong's arrival, Deepal was a key partner in Huawei's HI mode, promoting the catchphrase 'Left hand Deepal super extended-range, right hand Huawei Qiankun intelligence' during the launch of multiple products. Subsequently, to fully align with Huawei, Deepal not only switched to Huawei's systems across its product range and significantly reduced reliance on self-developed systems but also brought in executives from the Huawei ecosystem to overhaul its 'core' operations.

The rationale behind Deepal Auto's approach is not hard to fathom. From an industry standpoint, Huawei is currently the gold standard for intelligent technology and a wellspring of new traffic. Many automakers have staged a remarkable turnaround by fully embracing Huawei. Even automakers like Voyah, which are not part of the Harmony Intelligent Mobility Alliance, have witnessed rapid sales growth after pivoting their product strategies to align with Huawei. In contrast, Deepal was among the earliest adopters of Huawei's HI mode, yet its current market presence pales in comparison to the five brands under the Harmony Intelligent Mobility Alliance.

Moreover, from a practical perspective, Deepal is also under significant pressure. On the market front, Deepal Auto's sales surpassed 333,000 units in 2025, marking a 36.6% year-on-year increase, with 30,999 units sold in December alone. Although the sales growth seems substantial, the underlying pressure is immense: by 2025, Deepal Auto will have seven product models in its lineup, yet only one entry-level model, the S05, boasts monthly sales exceeding 10,000 units. Three models have monthly sales below 1,000 units, and the remaining two hover around the 2,000 to 3,000 unit mark. Notably, the S09 and G318 models have fallen far short of expectations. Additionally, Deepal's sales in November and December were even lower than the same period the previous year, with a continuous downward trend.

From a target achievement perspective, Deepal initially set a lofty goal of 500,000 units, which was later revised down to 360,000 units, but ultimately fell short. Due to the persistent failure to meet sales targets, Deepal Auto has not effectively alleviated its operational pressures, and losses continue to mount.

On December 25 of the previous year, Deepal Auto secured Series C financing, with this round of capital increase jointly funded by Changan Automobile, Chongqing Yufu Holding Group Co., Ltd., and CMB Financial Asset Investment Co., Ltd., totaling 6.122 billion yuan. The impetus for this financing remains Deepal Auto's urgent financial situation.

According to Deepal Auto's annual audit reports for the past three years, its operating revenue from 2022 to 2024 was 15.677 billion yuan, 26.926 billion yuan, and 37.224 billion yuan, respectively; net profits were -3.196 billion yuan, -3.107 billion yuan, and -1.571 billion yuan, respectively. The latest financial data reveals that as of October 31, 2025, Deepal Auto's total assets stood at 31.474 billion yuan, operating revenue at 39.797 billion yuan, and net profit at -1.025 billion yuan. From 2022 to October 2025, Deepal Auto has racked up cumulative losses of 8.899 billion yuan.

As of October 2025, Deepal Auto's total assets were 31.47423 billion yuan, and total liabilities stood at 35.98594 billion yuan. This indicates that Deepal Auto has been in a state of insolvency for three consecutive years.

Given this scenario, rapidly expanding the market is of paramount importance. Especially with the establishment of the Harmony Qiankun ecosystem and the launch of Huawei's distinctive 'X Jing' series brands, Deepal and others find themselves at a disadvantage in terms of brand recognition. 'Strongly bundling with Huawei' has thus become an inevitable choice. So, after nearly four months of Huawei-affiliated executives joining Deepal, what changes have transpired, and can they propel the company towards its goals of upward momentum and innovation?

According to Mirror Pro, following Jiang Hairong's ascension as CEO, significant adjustments have been made within Deepal. Firstly, Jiang Hairong has brought in a slew of individuals with Huawei backgrounds to key positions at Deepal, including product marketing, public relations, and other roles. Secondly, Jiang Hairong has reorganized the organizational structure, with a core focus on integrating a Huawei-style GTM (Go to Market) approach. However, the current reforms have already sparked clashes between the existing system and the new system. For instance, the GTM team can conduct performance evaluations of other teams, but the GTM team itself is not subject to evaluation by other teams.

It is reported that during multiple meetings in 2025, Jiang Hairong repeatedly lost his temper and used strong language, believing that personnel from Deepal's existing system were not supportive of his reforms, creating a highly awkward situation. This can be seen as a manifestation of the clashes between the two sides.

In reality, the emergence of such issues cannot be simply attributed to clashes between systems and cultures but rather to the deeper question of whether it is suitable for Deepal. Prior to Deepal, several automakers, including Leapmotor, Li Auto, and Zeekr, had already attempted to learn from Huawei. Among them, Li Auto had been learning from Huawei from 2022 to 2025, bringing in executives from the Huawei system and implementing Huawei's management system to a far greater extent than Deepal. However, from the results, all three automakers have abandoned learning from the Huawei model. Li Auto even announced in early 2026 that it would shift its benchmark from Huawei to Toyota.

Of course, this does not imply that the Huawei model is flawed but rather raises questions about its suitability. For instance, Li Auto CEO Li Xiang clearly addressed this at a third-quarter meeting last year. He believed that learning from Huawei's model is essentially a professional manager model, but this model does not align with the current unstable market environment and Li Auto's actual situation. In the third quarter of last year, executives from the Huawei system gradually faded from management, and Li Auto's entrepreneurial team began to regain control. If we solely consider sales, a directly observable indicator, Li Auto has declined from its peak and has not been able to achieve an ideal start in the electric vehicle market.

Another case in point is Zeekr. Zeekr had also brought in executives from Honor, attempting to address shortcomings in marketing and communication, but ultimately, Zeekr returned to its own path. Interestingly, Zeekr's two blockbuster models were not developed under the leadership of executives from the Honor system. For example, the recently popular Zeekr 9X can be seen as a testament to Zeekr's in-house capabilities. A pertinent question arises: at a time when others have abandoned learning from Huawei and bringing in executives from the Huawei system, why has Deepal once again embarked on this path? Compared to Li Auto and Zeekr, Deepal may believe that it is better suited to adopt Huawei's mechanisms and strategies.

However, Deepal is currently in the throes of this reform. For instance, the establishment of GTM has added an extra layer of management to the entire sales system, causing confusion in the previously streamlined management structure. Simultaneously, severe resource allocation issues have surfaced, causing problems at the dealer level. However, what is even more troubling for Deepal Auto is the issue of product and brand positioning and strategy.

In terms of products, Deepal fully shifted to Huawei in 2025 and discontinued its previous self-developed system products, leading to an overall increase in product prices. For Deepal's users, who are generally priced below 200,000 yuan, a price hike of over 10,000 yuan significantly increases costs, ultimately resulting in a sharp decline in product sales—most notably the S07. This product was once a pillar of Deepal's sales, but after switching entirely to Huawei's advanced intelligent driving system in October last year, its sales plummeted by over 50%. On the other hand, the S05, which retains the previous self-developed system, has successfully broken through. This indicates a problem with Deepal's positioning and product strategy. For instance, some dealers have reported that the pricing of models with Huawei's advanced intelligent driving system is relatively high, deviating from the core demands of the consumer group in the brand's current main price range (100,000-180,000 yuan).

Given this, bundling with Huawei also necessitates considering one's own positioning and products. Currently, the cheapest product from the Huawei system is priced between 150,000 and 200,000 yuan, offering Deepal an opportunity to elevate its brand and achieve a breakthrough. However, before that, it should address the internal friction caused by Huawei's reform—it remains uncertain how long this will persist. Of course, there is also a possibility that the Huawei model is highly suitable for Deepal, and after working through the differences (run in), they will unleash new vitality. As for which outcome is more likely, only time will tell.