01

Zenith Tests the Waters in the Million-Yuan Luxury Car Market

For a long time, there has only been one luxury car with an initial "S" in the hearts of Chinese consumers, and that is the Mercedes-Benz S-Class.

In the million-yuan luxury sedan market, the competition among brands such as Mercedes-Benz S-Class, Mercedes-Benz Maybach S-Class, BMW 7 Series, Rolls-Royce Ghost, Bentley, and others is not overly intense. Each brand operates within its own territory. These models not only represent the pinnacle of their respective brands but also embody the highest level of the luxury car market.

At this time, the luxury model Zenith S800, jointly launched by Huawei HarmonyOS Intelligent Drive and JAC, marks HarmonyOS Intelligent Drive's first foray into the million-yuan luxury sedan market, undoubtedly an important step towards exploring the ultra-luxury automotive segment. A few days ago, HarmonyOS Intelligent Drive released a 45° rear-side view photo of the Zenith S800, which will be officially unveiled at Huawei's Mate brand event this afternoon. Although specific models and detailed data have not been fully announced, based on available information, the length of the Zenith is approximately 5.5 meters (the Mercedes-Benz Maybach S 480 is 5469mm long). For other details such as design, configuration, and intelligence, let's enjoy them together at the launch event.

02

Does a Hero Need a Pedigree?

The terms "Huawei," "JAC," and "million-yuan luxury car" have already stirred up public opinion (roughly half are encouraging, and half are critical). In fact, a hero should not be judged by their origins; otherwise, it would be like Yuan Shu in the Tiger Firm Pass, who mocked Guan Yu, saying, "Just a mere archer, throw him out!" Everyone knows how that story ends.

Currently, sales of the Wenjie M9 have already surpassed those of the locally produced BMW X5. In view of this, can Huawei and JAC also create a miracle?

Global Electric Vehicle Sales in Q3 2024

Over the past five to six years, the price floor of domestic cars has been continuously raised, especially in the price range of 200,000 to 500,000 yuan. Consumers' recognition of domestic brands' premium pricing is increasing, which is the underlying reason why HarmonyOS Intelligent Drive wants to test the waters in the million-yuan luxury sedan market: technological innovation and R&D investment, coupled with the global shift towards electric vehicles.

According to public data, the market share of domestic cars in the 200,000 to 500,000 yuan price range has increased year by year. Taking 2024 as an example, compared with 2021, the share of domestic cars in the 200,000 to 300,000 yuan price range has increased by about three times, and in the 300,000 to 500,000 yuan price range, it has increased by more than four times.

As the price range shifts upwards, domestic car brands have also launched more high-end and intelligent models. These models have reached international advanced levels in terms of configuration, performance, and quality, meeting consumers' demands for high-quality and personalized driving experiences. It can be seen that the continuous rise in the price floor of domestic cars is backed by technological innovation and R&D investment, coinciding with the global shift towards electric vehicles.

Quality Improvement and Material Costs: Domestic cars have made significant progress in production processes and quality control, with higher standards for component quality.

Brand Upgrading and Market Positioning: Domestic car brands enhance their brand image and value by launching high-end models and creating luxury sub-brands.

Changes in Consumer Demand: With the improvement of living standards and shifts in consumption concepts, consumers' demand for automobiles has shifted from basic transportation to a more comfortable, luxurious, and personalized driving experience. This change in demand has driven the rapid development of the high-price vehicle market.

The simultaneous rise in quantity, price, and quality is a microcosm of China's automotive development and the explosion of new energy vehicles over the past decade.

03

Domestic Cars Challenging the Million-Yuan Price Point

Hongqi L5

Positioning: Luxury Sedan

Price: Starting at approximately 5 million yuan

The flagship model of the Hongqi brand, launched early on for the high-end market

Hongqi LS7

Positioning: Luxury SUV

Price: Approximately 1.3658-1.4658 million yuan

A high-end luxury SUV from the Hongqi brand

AITO U8

Positioning: New Energy Off-Road SUV

Price: Starting at 1.098 million yuan

One of the flagship models of BYD's premium brand AITO

Aion SSR

Positioning: Pure Electric Sports Car

Price: 1.2860-1.6860 million yuan

The first supercar from GAC Aion's premium brand Aion

Hongqi Guoya

Positioning: Luxury Executive Sedan

Price: Starting at 1.4 million yuan

A super-luxury executive sedan from the Hongqi brand

AITO U9

Positioning: New Energy Supercar

Price: Starting at 1.68 million yuan

Another heavy-hitter from the AITO brand, with outstanding acceleration performance

Xiaomi SU7 Ultra

Positioning: New Energy Coupe

Price: 814,900 yuan

A high-end model from Xiaomi Motors, with top-notch performance and configuration

The above models represent domestic automakers' foray into the million-yuan luxury car market. Due to the late start of China's automotive industry and a lack of historical accumulation, we can see that besides the Hongqi brand, other models mainly focus on technological luxury as their selling point, leveraging the power, intelligence, and autonomous driving advantages of electric vehicles for differentiated competition in the ultra-luxury segment.

However, ultra-luxury cars require more than just technological configurations; they also need brand strength, historical accumulation, texture, craftsmanship, and other multi-dimensional highlights. Every traditional luxury car has undergone centuries of historical accumulation and market testing:

Mercedes-Benz S-Class: Emphasizes nobility and comfort, serving as the flagship model of the Mercedes-Benz brand and representing the highest level of Mercedes-Benz in the luxury car market.

BMW 7 Series: Pursues the combination of sportiness and luxury, emphasizing driving pleasure and vehicle handling.

Rolls-Royce: Renowned for its ultimate luxury and bespoke handcraftsmanship, representing the glory of the British automotive industry and synonymous with top-tier luxury cars.

Bentley: Also characterized by luxury and bespoke handcraftsmanship but places more emphasis on sportiness compared to Rolls-Royce.

Mercedes-Benz Maybach S-Class: As a premium sub-brand of Mercedes-Benz, Maybach incorporates even more luxurious elements while retaining the essence of Mercedes-Benz, positioning itself above the regular Mercedes-Benz S-Class.

These luxury car brands all place great emphasis on vehicle design and craftsmanship, with an abundance of luxurious elements. Therefore, in addition to leveraging their technological advantages, domestic ultra-luxury cars also need to rid themselves of impetuosity, fully precipitate their brand and craftsmanship, in order to truly create luxury artworks.

The line from the historical records, "Records of the Historian" by Sima Qian, "Are kings, dukes, generals, and ministers born to their positions?" has inspired countless Chinese who do not believe in fate. As long as we continue to develop steadfastly without wavering, who can deny that, given time, the next million-yuan luxury car brand will emerge from a Chinese automotive brand?