Recently, GAC Motor and Huawei jointly unveiled their first concept car, “1 Concept.” The official announcement stated that the production version will be delivered in the first quarter of 2025.

    It is understood that the 1 Concept is expected to be positioned as a large flagship sedan, equipped with GAC Motor's i-GTEC 2.0 engine, Huawei's Kunlun Intelligent Driving ADS 3.0 system, a new generation of HarmonyOS cockpit, and the latest “GAC Super Extended Range” power system.

    In fact, as early as July 2022, GAC Aion and Huawei had already collaborated on the joint development of the AH8 model. According to the plan, both parties will leverage GAC Motor's GEP3.0 chassis platform and Huawei's CCA to build a new generation of intelligent automotive digital platforms, incorporating Huawei's full-stack intelligent automotive solutions. Together, they aim to develop a series of future-oriented smart cars.

    However, in March of last year, GAC Group announced that Huawei would no longer participate in the joint development of the GAC Aion AH8 project, and the two sides would retain their relationship solely as supplier and purchaser.

    Now, GAC Motor and Huawei have rekindled their collaboration, coming full circle.

    Since the launch of its first model in 2019, GAC Aion's annual sales have doubled year after year. In 2023, GAC Aion achieved annual sales of 480,366 units, a year-on-year increase of 77.02%, with cumulative sales exceeding 1 million units, making it the fastest automaker to reach this milestone in new energy vehicle sales.

    At that time, GAC Aion was at the peak of its performance in the automotive market. Furthermore, GAC Aion set itself an ambitious challenge – to sell at least 700,000 units and strive for 800,000 units in 2024.

    However, no one anticipated that after last year's high growth, GAC Aion's sales seem to be on a downward trend this year.

    In August, GAC Aion sold only 31,772 new energy vehicles, a year-on-year decline of 29.44%, marking the seventh consecutive month of declining sales. In the first eight months of this year, GAC Aion sold only 186,388 units, a year-on-year decline of 37.74%. Currently, GAC Aion's target completion rate is only 26.63%, leaving it uncertain whether the annual target will be met.

    The saturation of the ride-hailing market has impacted GAC Aion's sales.

    Public data shows that approximately 220,000 of GAC Aion's 2023 sales went to the ride-hailing market, accounting for 45.8% of its total sales. In the ride-hailing market, GAC Aion's models accounted for approximately 25% of new additions, meaning that one out of every four new ride-hailing vehicles is from GAC Aion.

    However, with the issuance of ride-hailing capacity saturation warnings in many regions, the demand for ride-hailing vehicle procurement has declined sharply, directly affecting GAC Aion's sales.

    More importantly, competition in the domestic automotive market has reached a fever pitch, with automakers vying fiercely for market share. To gain a competitive edge, many automakers are launching new products. In the 100,000-180,000 yuan price range, GAC Aion's popular Y and S models were previously dominated by the fuel vehicle market. However, with the entry of more electric vehicles into the competition, GAC Aion's first-mover advantage has diminished.

    Furthermore, the new energy vehicle sector is undergoing rapid differentiation. As pure electric vehicle sales gradually weaken, plug-in hybrid and extended-range electric vehicle sales are surging.

    It is noteworthy that Volkswagen, Volvo, and BBA have all announced delays in their full electrification strategies, shifting focus to hybrid vehicle development. Domestic automakers NIO, AITO, ARCFOX, ZEEKR, and XPeng have also announced their entry into the extended-range electric vehicle segment.

    Against this backdrop, GAC Aion must adapt to this trend.

    Earlier, GAC Aion's General Manager Gu Huinan stated, “Aion will introduce plug-in hybrid and extended-range models based on market changes and is currently planning for extended-range vehicles.”

    In April 2024, GAC Motor and Huawei jointly announced the “Innovation” collaboration plan at the Beijing Auto Show. According to the plan, the two parties will combine GAC Motor's i-GTEC 2.0 engine, Huawei's Kunlun Intelligent Driving ADS 3.0 system, and the new-generation HarmonyOS cockpit to create a series of all-new flagship models, including sedans, SUVs, and MPVs.

    The 1 Concept is the first product to materialize from the GAC Motor-Huawei “Innovation” collaboration plan, expected to be positioned as a large flagship sedan.

    Additionally, the 1 Concept will be equipped with GAC Motor's latest new energy technology, the “GAC Super Extended Range,” which offers a three-motor distributed four-wheel drive system and a four-motor independent drive electric powertrain layout. According to the official introduction, the “GAC Super Extended Range” is paired with a 56 kWh, 800V, 5C fast-charging battery pack specifically designed for extended-range electric vehicles, providing an all-electric driving range of over 300 kilometers.

    In recent years, as the growth of pure electric vehicles has slowed, extended-range electric vehicles have gained popularity. However, despite many manufacturers seeking a share of this market, the discourse remains largely controlled by leaders such as LIXIANG ONE and AITO.

    This presents a challenge for other manufacturers to overcome.

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