Huawei Invests 500 Million in New M7 Upgrade: A Crucial Move to Turn the Tide

On September 12th, the AITO Wanjie’s new M7 was launched. Although it’s just an annual minor upgrade, the new M7 claims to have invested 500 million yuan in its development, generating significant anticipation.

“500 million yuan is enough to develop an entirely new car model,” said an automotive industry insider to 36Kr. Judging from various aspects of the new M7, aside from the exterior design, it has undergone substantial changes inside and out, including seats, bodywork, power systems, software systems, and more.

Notably, the new M7 has been upgraded in many aspects such as intelligence and spatial design, including the addition of HUAWEI ADS 2.0 advanced intelligent driving systems. It also introduced a 5-seat version on top of the previous 6-seat version.

Huawei has consistently strived for excellence in various aspects, including intelligent driving and cabin design. The new M7 is equipped with Huawei’s latest ADS solution, which doesn’t rely on high-precision maps but instead adds algorithms like Road Connectivity Reasoning (RCR) to identify road information.

During the launch event, Yu Chengdong, CEO of Huawei Consumer BG and CEO of Intelligent Automotive Solutions BU, also announced the latest plan for ADS 2.0: Urban Navigation Assistance (NCA) for intelligent driving will be available in all cities across the country in December this year.

This is nearly the most aggressive pace in the industry. Previously, companies like Ideal Auto and XPeng Motors announced that similar features would be available in 100 and 50 cities in China this year, respectively.

The opening pace for urban NCA has gone from 45 cities within the year to covering all cities nationwide, demonstrating Huawei’s accelerated pace. It’s evident that Huawei aims to convert its technological advantages into product capabilities and boost sales.

“Although the current sales are not ideal, with the entire auto industry in turmoil and various voices such as price competition today and feature competition tomorrow, we have a firm belief that Huawei’s technology will surely win in the future,” said Wang Yanmin, President of Huawei Consumer BG’s Smart Car Business Department, in an interview with 36Kr and other media outlets.

In terms of sales strategy, Huawei has no reservations this time. The starting price of the new M7 has been lowered to 249,800 yuan, a 40,000 yuan reduction compared to the previous generation, with additional limited-time discounts during the initial sales period. Backed by Huawei, Wanjie has also engaged in joint marketing efforts, reportedly allowing customers who place orders before October 7th to have priority access to purchase Huawei’s popular “Mate60 series” smartphones.

This is a battle that cannot afford to fail. Wanjie is a brand deeply involved by Huawei, a shining achievement in Huawei’s “indirect” car manufacturing efforts. However, Wanjie’s sales have been lukewarm this year. According to production and sales data released by its partner Saic-Iveco Hongyan Commercial Vehicle Co., Ltd., sales of Saic-Iveco vehicles reached 33,264 units from January to August this year, a year-on-year decrease of 15.64%.

The new M7’s entry into the “large five-seater” market is also one of the models among Wanjie’s new cars this year that is most likely to generate volume. Can it carry the weight of this responsibility?