The new energy vehicle market today is a fiercely competitive landscape. Thalys, once a market dark horse, now finds itself in uncharted waters, grappling with slowing sales growth, executive turmoil, and production bottlenecks. This former capital market favorite appears to be losing its shine.

Tesla, leveraging its brand premium and vertically integrated technology, maintains its top spot in China's new energy vehicle market with a 18.2% share. BYD reigns supreme with a 29.5% share, thanks to its vertical integration and stringent cost control. Meanwhile, newcomers like NIO, XPeng, and Li Auto carve out a niche in the premium market with their intelligent branding. Thalys, on the other hand, hovers on the brink of the second tier with less than 3% market share, lacking Tesla's global appeal and BYD's scale advantage, and trailing behind NIO, XPeng, and Li Auto in the race towards intelligentization.

Moreover, traditional automakers are accelerating their electric transition. Giants like Volkswagen and Toyota are investing heavily in electrification, with Volkswagen's ID series surpassing 500,000 sales in China in 2024. Local brands like GAC AION and Geely's Zeekr leverage their parent companies' supply chain advantages to rapidly scale up production, with Zeekr achieving annual sales of 280,000 units, a 76% year-on-year increase. The industry has shifted from 'new entrants disrupting the tradition' to 'full-scale electrification chaos', further squeezing Thalys' survival space.

'Hit Product Maker' Empowered by Huawei

Amidst the turmoil in the new energy vehicle market, Thalys' collaboration with Huawei stands out as a textbook example of resource integration. Huawei's extensive traffic inlets, technological foundation, and channel dominance have propelled Thalys to prominence as an 'OEM king'. In 2024, Thalys' sales soared 67% year-on-year, with the AITO series briefly rivaling NIO and Li Auto. However, beneath this seemingly seamless partnership lies the question of whether it represents a true technological empowerment or merely an illusion of 'contract manufacturing prosperity'.

First, Huawei's Smart Selection Model: Dual Empowerment of Traffic and Technology

Thalys' deep integration with Huawei is its strongest asset. Huawei not only provides the three-electric system, HarmonyOS cabin, and ADS 2.0 advanced intelligent driving technology but also diverts traffic through its extensive offline and online retail networks. The AITO M7 received over 50,000 orders in its first month, mirroring the success of Huawei's smartphone hit products. With the endorsement of Huawei Consumer Business Group CEO Yu Chengdong, Thalys has become synonymous with 'Huawei content', even being dubbed 'Huawei's Automotive Business Unit'.

Second, Intelligent Experience: HarmonyOS Ecosystem's Dimensionality Reduction Strike

In the race towards intelligentization, Thalys, leveraging Huawei's full-stack technology, has surpassed traditional automakers. HarmonyOS Cabin 3.0 enables seamless multi-device connectivity, and ADS 2.0 covered 90% of China's highway scenarios in 2024, with a user experience score surpassing XPeng's XNGP. Third-party evaluations reveal that the AITO M7's smart cabin interaction efficiency is 30% higher than Tesla's Model Y, making it a compelling choice for family users.

Third, Cost Control: Initial Manifestation of Scale Effect

With the commissioning of the second phase of the Chongqing Liangjiang factory, Thalys' annual production capacity has increased to 500,000 units, reducing the manufacturing cost per AITO M7 by 8% year-on-year. Additionally, Huawei's supply chain bargaining power, such as securing battery procurement prices from CATL that are 5% lower than the industry average, further reduces costs, giving Thalys the confidence to engage in price wars. In 2024, the AITO M5 facelift saw a direct price reduction of RMB 40,000, directly impacting BYD Tang DM-i's market share.

How Far Can Thalys Fly Under Huawei's Wings?

The 'Smart Selection Model' jointly created by Thalys and Huawei was once seen as a shortcut to premiumization, but the decline of the AITO M7 has exposed the fragility of this model. AITO's sales fell for three consecutive months in the first quarter of 2025, with March sales reaching only 13,700 units, a 45.19% year-on-year decline. According to consumer research firm J.D. Power, 61% of potential customers believe that 'Thalys lacks independent premium brand genes,' while Huawei store sales consultants are more inclined to recommend cooperative models like Zeekr and AVITAR, further diluting Thalys' brand recognition.

The sole bright spot comes from the new model AITO M8, which surpassed 50,000 orders within four days of its launch and exceeded 60,000 within 13 days. Furthermore, the AITO M8's monthly order volume has surpassed similar models like the Li Ideal L8 and NIO ES8, becoming the sales champion in the RMB 300,000-400,000 price range. However, this achievement was offset by the AITO M7's decline, with annual sales falling 51% year-on-year. Hence, there are concerns in the market that the M8's popularity may be a short-lived phenomenon under Huawei's influence.

Today's new energy vehicle price war has escalated to an all-out battle. Tesla's Model Y Long Range version has seen an official price reduction of RMB 40,000, BYD Qin PLUS EV's starting price has dropped to RMB 119,800, and NIO has indirectly reduced prices across its entire lineup by up to RMB 60,000. Thalys is forced to fight on two fronts: in the premium market, the AITO M9 introduces a 'RMB 50,000 Intelligent Driving Benefits Package' as an indirect price reduction; in the mid-range market, the SF5 sees a direct price reduction of RMB 28,000, hitting a historic low of RMB 156,000. Thalys' sales figures paint a mixed picture: while the AITO M8 enjoys a fleeting moment of glory, the AITO M7 continues to struggle; while benefiting from Huawei's technological empowerment, Thalys also grapples with the repercussions of brand dependency. As Huawei's Smart Selection partners expanded to five automakers in the first quarter of 2025, Thalys' 'privileged dividends' may soon diminish.

Industry Competition Pressure Mounts

The new energy vehicle industry has always been one of the most fiercely competitive sectors, and 2024 marked a peak in this rivalry. Thalys faces stiff competition from numerous domestic and foreign players, with its market share under severe pressure.

In the domestic market, giants like BYD and Tesla continue to dominate with their robust technological prowess and brand influence. BYD, leveraging its deep expertise in battery technology and vehicle manufacturing, has launched several popular new energy vehicle products, achieving a 32% market share in 2024 and securing the top spot in China's new energy vehicle market. Tesla, with its edge in intelligent driving and brand marketing, attracts a vast consumer base, achieving an 18% market share and ranking second in China's new energy vehicle market.

Simultaneously, emerging new energy vehicle brands are on the rise, posing new threats to Thalys. Brands like NIO and XPeng have swiftly captured market share with their innovative business models and high-quality product services. NIO appeals to high-end consumers through its premium brand image and comprehensive user service system, while XPeng continues to make breakthroughs in intelligent driving and Internet of Vehicles technology, introducing multiple competitive products. The ascent of these emerging brands has further complicated the competitive landscape of the new energy vehicle market, compressing Thalys' survival space even further.

Conclusion

Thalys' slowing business growth poses a significant challenge in its development journey, but it is not insurmountable. In the rapid evolution of new energy vehicles, Thalys has achieved remarkable milestones with its innovative technology and keen market insight. However, it now confronts pressures from market competition, internal management, and other facets. This scenario recalls many once-prominent new energy vehicle enterprises that gradually lost their market competitiveness and even declined due to strategic missteps, poor internal management, and other issues during their rapid growth.

Thalys' future is fraught with both opportunities and challenges. Amidst fierce market competition, it must adhere to its original aspirations, return to the core of user needs, and create greater value for users through technological innovation and model transformation. Simultaneously, Thalys must strengthen internal management, optimize resource allocation, enhance operational efficiency, and cultivate a healthier and more sustainable corporate ecosystem.

The second half of the new energy vehicle era is an ultimate contest of intelligentization, globalization, and ecologization. If Thalys fails to break free from its 'Huawei dependency syndrome' and swiftly establish an independent technology system and brand moat, it risks marginalization as Huawei embraces the next 'Thalys'. 'Riding the tide is easy, but standing on one's own feet requires strength.' In this race against time, Thalys needs more than just Huawei's traffic; it needs a profound self-revolution.