Huawei, the Chinese tech giant, and Chery Auto have reached a significant milestone with the start of mass deliveries of their Luxeed S7 electric sedan. This comes after overcoming challenges related to semiconductor shortages and production issues, as stated by Richard Yu, Managing Director and Chairman of Huawei’s smart car solutions, in a recent post on the Weibo social media platform.
The Luxeed S7, the first model under Chery’s Luxeed EV brand, had garnered significant interest with approximately 20,000 orders recorded as of November 28. This premium electric vehicle (EV), priced starting from 249,800 yuan (approximately 142,930 AED), combines advanced technology with luxury, positioning it as a noteworthy entrant in the EV market.
Huawei had previously acknowledged the difficulties in delivering this premium brand EV, citing resolutions expected from April onwards, as per local media reports earlier this month. Challenges in the production, especially those related to computing units manufactured by Huawei, had caused delays in vehicle deliveries, leading to complaints from Chery, as reported by Reuters in January.
Despite these hurdles, the Luxeed S7’s journey from production to delivery signifies a crucial step forward for both Huawei and Chery. “A large number of Luxeed S7 vehicles have already rolled off the production line and are now being transported for delivery to customers,” Yu elaborated on the significant progress made.
Huawei’s involvement in the smart car industry is part of its broader strategy to diversify and innovate, especially following the impact of U.S. sanctions. The company’s revenues witnessed their fastest growth in four years in 2023, thanks in part to the rebound in its consumer segment and burgeoning income from new ventures like smart car components.
In a strategic move, Huawei announced last year that it would spin off its smart car unit into a separate entity. Yu indicated earlier this month that this division is expected to start turning a profit from April, following a period of significant financial losses in the previous year. This transition marks a promising turn in Huawei’s venture into the smart automotive industry, showcasing its resilience and adaptability in the face of challenging market conditions.
