Recently, Mengshi Auto, in collaboration with Huawei, unveiled the all-new Mengshi M817. The vehicle is available in five configurations, with pre-sale prices starting at 329,900 yuan and a final recommended retail price (official guide price) from 299,900 yuan—20,000 yuan lower than the entry price of its predecessor.

As Dongfeng Group’s flagship brand for entering the high-end off-road market, Mengshi Auto’s initial model made a lackluster impact in the premium segment. Although sales briefly surged with the launch of the Mengshi M817, equipped with Huawei ADS 4.0, they plummeted in 2026, with only 340 units sold in May—a sharp month-on-month decline of over 60%.

Stock Star observes that beneath these pricing adjustments lies a limited growth potential in the off-road vehicle segment, where competitors have already established technological and ecological barriers. Faced with a narrow product lineup and fragmented pricing strategy, it remains uncertain whether Mengshi Auto’s dual-base approach and intensified collaboration with Huawei can carve out a differentiated competitive edge in this fiercely contested market.

01. High-End Hurdles: Sluggish Sales Performance

Launched in 2022, the Mengshi brand represents Dongfeng Group’s foray into the luxury electric off-road vehicle market. In August 2023, Mengshi Auto’s first mass-produced model, the Mengshi 917, entered the then-nascent new energy off-road segment, with pre-sale prices ranging from 700,000 to 1.6 million yuan.

However, as a cornerstone of Dongfeng Group’s new energy transition, Mengshi Auto struggled to gain traction. Initially planning to sell 1,687 units in a limited 2023 release, only 824 units of the Mengshi 917 had been sold by year-end, at an average transaction price of around 700,000 yuan. Media reports indicate that sales rose to 2,101 units in 2024, averaging roughly 175 units per month. Clearly, Mengshi Auto failed to solidify its market presence, with its brand premiumization falling short of expectations.

In August 2025, the Mengshi M817 debuted with a significantly reduced pre-sale price of 329,900 yuan and a final guide price starting at 319,900 yuan. As the world’s first off-road vehicle fully integrated with Huawei’s Qiankun intelligent solution, it came standard with HarmonyOS Cockpit 5 and ADS 4.0. Leveraging the “Full Huawei” branding, Mengshi Auto’s market performance saw a notable boost. Official brand data reveals sales of 1,450, 2,007, and 3,002 units in October, November, and December 2025, respectively, culminating in annual sales of 10,228 units in 2025.

Stock Star notes that in 2026, Mengshi Auto’s sales collapsed. According to Autohome data, sales plummeted by approximately 66% month-on-month to 1,008 units in January, edged up slightly to 1,033 units in February, rebounded to 2,036 units in March with the Spring Refresh launch event, but then crashed again in April and May, with only 866 and 340 units sold, respectively—representing month-on-month declines of 57.47% and 60.74%. In the first quarter of 2026, Mengshi Auto sold just 4,077 units.

Confronted with stagnant sales growth, Mengshi Auto revised its pricing strategy, extending its price range downward to stimulate demand. The official pre-sale price for the all-new Mengshi M817 starts at 370,000 yuan, with a final guide price spanning 299,900 to 399,900 yuan. The entry price is roughly 70,000 yuan lower than the pre-sale price and 20,000 yuan cheaper than the previous model. Evidently, Mengshi Auto is no longer relying solely on high-end models to shape its brand image but is pivoting toward the lower-tier market.

From the initial luxury pre-sale price of up to 1 million yuan for the Mengshi 917 to the current focus on the 300,000-yuan range for the all-new Mengshi M817, Mengshi Auto’s high-end strategy has faltered, forcing it to move downmarket to secure its position—a passive compromise between brand positioning and survival pressures.

02. Niche Segment Challenges and a Thin Product Lineup

The Mengshi 917’s failed high-end debut failed to persuade consumers of the product’s value relative to its premium price. However, with weak brand influence, whether moving downmarket can drive sales breakthroughs remains uncertain.

From a market perspective, hardcore off-road vehicles occupy a niche segment, with a market penetration rate of about 3% for hardcore off-road SUVs in China in 2025. While the segment has grown rapidly in recent years, the pool of hardcore off-road enthusiasts remains limited, capping the segment’s potential.

Stock Star highlights that within this constrained market, Mengshi Auto faces entrenched competitors, with leading brands like Tank, Fangchengbao, and Beijing Off-Road already well-established. According to May 2026 sales rankings for hardcore off-road models, Tank dominated four of the top six spots, ranking first, third, fifth, and sixth. The Mengshi M817 ranked sixteenth with 340 units sold, while the top-ranked Tank 300 sold 3,595 units—more than ten times that of the Mengshi M817.

Established competitors each boast unique strengths that further raise barriers for Mengshi Auto. For instance, Fangchengbao leverages BYD’s supply chain, developing and producing core technologies in-house to reduce reliance on external suppliers. Tank, meanwhile, continuously participates in the Taklimakan Rally, refining vehicle performance through real-world testing while focusing on building an off-road ecosystem.

In terms of pricing, Tank covers the mainstream 200,000–500,000 yuan range; Fangchengbao employs a dual-line strategy, with the Titan series targeting the 100,000–200,000 yuan market and the Leopard series focusing on the 200,000–500,000 yuan segment. Continuous model launches have cultivated a vast user base, establishing a robust brand foundation.

In contrast, Mengshi Auto’s product lineup is thin, and its pricing strategy is fragmented. Currently, only two models—the Mengshi 917 and Mengshi M817—are available. Sales heavily rely on the Mengshi M817, lacking entry-level volume models to boost brand visibility or multiple models to cater to diverse budgets. This single-product approach leaves the brand far more vulnerable to risks than its competitors.

Faced with intense competition, Dongfeng Group formed a joint venture with Xiangyang State-Owned Assets in September 2025 to produce intelligent light off-road models under the Mengshi brand in Xiangyang, targeting the mainstream 200,000–300,000 yuan market. All models will feature Huawei’s ADS intelligent driving system and HarmonyOS intelligent cockpit. The Xiangyang base plans to launch three new models within three years, with the first set for mass production in September 2026. Meanwhile, the Wuhan base will continue focusing on high-end hardcore off-road models, creating a complementary “luxury heavy off-road + mainstream light off-road” lineup.

Clearly, at the product level, deep collaboration with Huawei has become the cornerstone of Mengshi Auto’s “intelligent off-road” strategy. The all-new Mengshi M817 highlights Huawei’s full Qiankun intelligent system as its key selling point and most distinct differentiator. In May, Mengshi Auto and Yijing, another Dongfeng Motor brand, initiated a comprehensive deepening of strategic cooperation 2.0 with Yinwang Intelligent Technology, aiming to further strengthen their footprint in the intelligent segment.

However, in today’s market, where intelligence is no longer a rare commodity, relying solely on Huawei’s technological support may not suffice to secure long-term competitive advantages. The previous sales recovery of the older Mengshi M817, driven by Huawei’s influence, proved short-lived. Whether continuing to emphasize “Huawei empowerment” can truly revitalize Mengshi Auto and resolve its sales dilemma remains to be seen. (This article was first published on Stock Star, Author | Lu Wenyan)

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