AITO's forthcoming vehicles will be built on Changan's next-generation SDA platform, sharing R&D resources with brands like Qiyuan and Deep Blue. Gradually, the CHN platform, a collaboration with Huawei and CATL, will take a backseat.

In future endeavors, Changan and AITO will act as 'Original Equipment Manufacturers' (OEMs), while Huawei will clearly position itself as a 'key supplier'.

By | Lu Yanbo

Edited by | Mao Shiyang

Original content by Autopix (ID: autopix)

01.

AITO Integrates into Changan's 'Family'

On December 12, AITO and Huawei signed a 'Comprehensive Deepened Strategic Cooperation Agreement' at Huawei's Shenzhen headquarters, announcing a deepened collaboration in product development, marketing, and ecological services. Notably, Huawei will support AITO in creating the next generation of vehicle models.

Exclusively, we've learned that AITO anticipates launching at least two new products in 2026: a large six-seat SUV codenamed F618 and an MPV codenamed D706. These will be flagship models in AITO's next-generation lineup, with F618 slated for mass production (SOP) post-June 2026.

These new vehicles signify a shift in AITO's product development strategy.

We understand that Changan is developing the SDA 2.0 platform, with the first batch of products expected in 2026. AITO's next-generation offerings will primarily be based on this new SDA 2.0 platform, with F618 poised to be its inaugural model.

Currently, AITO's products are developed on the CHN platform, nominally exclusive to AITO and jointly developed by Changan Automobile, Huawei, and CATL (C for Changan, H for Huawei, N for CATL).

The new platform does not continue the CHN collaboration model. While Huawei remains a key partner, the nature of the collaboration will evolve. The SDA 2.0 platform is self-developed by Changan and shared by multiple Changan brands. A source close to Changan's R&D system revealed that Huawei's role will resemble that of a 'key supplier' rather than a manufacturing partner.

With the new platform, AITO's product cadence will accelerate. Having relied on the CHN platform for four years, AITO has introduced one new model annually. We understand that AITO 06 will be the brand's sole new product in 2025, joining the existing AITO 11, 12, and 07 models launched in 2022, 2023, and 2024, respectively.

▍AITO 06, to be launched next year

In 2026, AITO will begin introducing vehicles on the SDA 2.0 platform, with two new models planned for that year alone. Post-2026, AITO aims to introduce more than one new model annually.

The exclusive platform setup is partly responsible for AITO's slower product cadence.

Currently, Changan operates four main new energy platforms: EPA1, MPA, CHN, and the first-generation SDA. The MPA platform supports Changan's Yinli and Oushang brands, targeting the low-to-mid-end market with combined annual sales exceeding 2 million vehicles, forming the backbone of Changan's sales.

The EPA1 and SDA platforms primarily support Changan's Deep Blue and Qiyuan brands. Younger than AITO, Deep Blue launched in late 2022 and Qiyuan in late 2023. In the first 11 months of this year, these two brands sold 170,000 and 130,000 units, respectively, nearly three and two times AITO's sales during the same period.

Exclusive to the CHN platform, AITO has the smallest production and sales scale. In the first 11 months of this year, AITO sold over 63,000 units, a significant increase from the previous year but still small enough to hinder independent iterations.

A source close to Changan's R&D system revealed that AITO's exclusive platform results in low R&D reuse efficiency and low parts commonality with other Changan brands, necessitating independent product development teams.

02.

Huawei's Crucial Role

Changan has always positioned AITO as a premium brand. Since inception, Changan has partnered with leading players in critical areas, relying on Huawei for intelligence and CATL for batteries. The brand value these partners bring is a core competitive advantage for AITO.

Unlike the CHN platform, the SDA 2.0 is not exclusive to AITO. AITO will gradually integrate with high-end products from Changan's Deep Blue and Qiyuan brands, raising questions about maintaining AITO's uniqueness.

Huawei's role becomes even more critical. On August 19, 2024, Changan Automobile announced that its subsidiary AITO Technology would invest 11.5 billion yuan to acquire a 10% stake in Huawei Yingwang. On August 20, AITO officially announced the completion of the investment agreement, becoming the second-largest shareholder in Huawei Yingwang, a company established by Huawei's BU to carry its core intelligent vehicle technologies.

All four of AITO's current products, including the launched AITO 11, 12, and 07, and the upcoming AITO 06, are collaborations with Huawei under the 'HI Mode'.

However, this tight partnership has also posed challenges for AITO.

▍Zhu Huarong, Chairman of Changan Automobile

AITO plans to enter multiple overseas markets next year. Currently, AITO 11 is available in a few markets like Thailand, and next year, AITO 11 and 12 will launch in Russia, Southeast Asia, the Middle East, Latin America, and other countries.

In some target markets, it's challenging for Huawei's intelligent solutions to enter simultaneously. We understand that to adapt to certain overseas market rules, AITO has removed or reduced LiDAR sensors on some models. In key intelligence areas, AITO is introducing new suppliers to assist with modifications.

Changan's overseas strategy is pivotal. On April 18, 2023, Changan Automobile launched its globalization plan 'Hai Na Bai Chuan'—investing over $10 billion in overseas markets by 2030 to achieve annual sales of over 1.2 million units and employ over 10,000 people in overseas operations.

AITO aims to capitalize on this. From 2022 to the first half of 2024, AITO incurred a net loss of 7.1 billion yuan, with a debt ratio of 94.5%. AITO targets a turnaround next year, aiming for 220,000 unit sales in 2025. Chen Zhuo, President of AITO Technology, revealed that the Changan Automobile Board of Directors has tasked AITO with aiming for break-even in Q3 and Q4 2025. Additionally, AITO Technology plans to go public in 2026.

AITO's financial and sales targets necessitate overseas market support. AITO products are priced significantly higher overseas than in China. In some markets, AITO 11's pricing exceeds 400,000 yuan, about 1.5 times the Chinese price.

AITO and Huawei must innovate their collaboration. Last week, they further signed a 'deepened cooperation' agreement. Xu Zhijun, Huawei's rotating chairman, stated that AITO represents a groundbreaking practice for Huawei in helping automakers 'build good cars' and 'build great cars'.

While their cooperation will span R&D, marketing, ecology, and other areas, broader and deeper than the 'Hi Mode', AITO's responsibilities as the main entity are clearer. As a Changan premium brand, AITO serves as the OEM, with Huawei as a key intelligence supplier to AITO.

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