On Huawei'S Car Sales

"After cooperating with Huawei, we have too many orders. We can't pick up the car until the end of July at the earliest. At present, the orders of Cyrus Huawei intelligent sF5 in China have exceeded 10000. From April 20, the two-day order exceeded 3000 vehicles, and during the May Day period, the order exceeded 6000 vehicles. "

On the afternoon of May 20, the sales director of jinkangsailis 4S store in Longgang District, Shenzhen, told the reporter of the 21st century economic report that it might be the breakthrough of orders in recent days that made him accustomed to it, and the director was indifferent.

Due to the fact that it is a working day and not in the downtown area, only four or five people from the shop came to see the sF5, which has been in high heat recently“ Today is a working day. There are few customers and few sales staff in the shop. There are so many people on Saturdays and Sundays that we hardly have time to rest. It's normal to work overtime until nine or ten o'clock in the evening. "

Huawei, which claims to be "not making cars", is deeply involved in the key fields of intelligent vehicles. Huawei's Bu helps car companies build good cars, and Huawei's intelligent selection helps them sell cars. Thanks to Huawei's traffic and halo, the little-known Cyrus has a voice. The number of orders for sF5, which has exceeded 10000 yuan, seems to confirm Huawei's success in selling cars.

It is worth noting that just relying on Huawei's traffic, feelings and offline channels, it is not difficult to harvest a batch of "pollens" in the short term. But when Huawei's filters fade, are consumers still enthusiastic about Huawei's car sales? According to Huawei's plan, other Huawei enabled brand cars will successively enter the Huawei smart select platform. In the future, at least 2-3 Huawei smart cars will be displayed in the stores. What will happen to Cyrus, which is excessively attached to Huawei? Is Huawei Zhixuan's sales target of 300000 cars in 2022 a gimmick or strength?

More than ten thousand orders

As the first car sold by Huawei, sF5 was released during the Shanghai auto show a month ago, with two-wheel drive version and four-wheel drive version at the price of 216800 yuan and 246800 yuan respectively. According to official data, the new car is equipped with Huawei driveone three in one electric drive system, Huawei hicar and Huawei sound. However, only Huawei smart sF5 4WD version is equipped with Huawei driveone three in one electric drive system. It is worth noting that Huawei's offline stores and Huawei's official website currently only sell four-wheel drive models.

Since its sale on April 20, Huawei has opened offline car viewing and test driving in Shanghai, Shenzhen, Hangzhou, Chengdu and other cities. More cities such as Beijing and Guangzhou will open in late May. It is understood that Huawei will build 200 experience stores to sell cars by the end of July, increasing to about 1000 by the end of the year.

According to the process, consumers should first pay 1000 yuan of intention money on the official website, and then go to the offline stores for a test drive. However, the reporter found that the 1000 yuan intention money is not a necessary option, and consumers can also make an appointment for the number of online stores directly. If you want to buy, you need to pay a deposit of 10000 yuan before you can enter into the production of production orders.

According to the data, since the sF5 was put on sale, the order performance of Cyrus Huawei smart select sF5 has been quite impressive, exceeding 3000 orders in two days, and the order volume in a week has exceeded 6000. According to the above-mentioned sales director, the current order volume has exceeded 10000“ Most of the customers I receive are young people aged between 28 and 35. Many people place orders directly after the test drive. They always have a feeling for Huawei. "

Although we didn't see the hustle and bustle of Cyrus 4S store, the reporter witnessed the crowd in Huawei's store in Shenzhen. On May 16 (Sunday), Huawei's global flagship store in Vientiane world, Shenzhen, the 34 degree heat failed to stop people's enthusiasm and curiosity. The parents holding their children, the younger brothers and sisters carrying milk tea, and the middle-aged uncles who were full of food and drink flocked to the store.

Some people are surprised that "Huawei is selling cars", while others are excited. "I heard about this car before, and I think it's very promising because of Huawei's insistence." after the test drive, some people are excited, "the acceleration is good, the sound is good", others are not very happy, "we have to wait for a week or two to test drive", and others ask about the price, performance, range

"At present, the flow of people is not too much. During the May Day period, the flow of people reached at least 5000 + per day, with a maximum of 12000. At that time, the number of people who came to make a test drive appointment could not be ranked. The last two weeks are full of weekend test drive. At present, a single store orders 200 units, all paid 10000 yuan intention money. " At that time, it was the employees of Cyrus who introduced the performance and endurance to the reporters. They were wearing the same uniform as the employees of Huawei. "We were temporarily sent to the Huawei store for reinforcement. The above said that we should do a good job of support and provide consultation and service for customers."

21st century economic report reporter learned that at present, Huawei's experience store only provides exhibition vehicles and test drive cars, which can be tested and reserved, while the sales and delivery links are in the charge of celis 4S store. It is worth mentioning that at present, most of the orders come from Huawei channel.

"The car is an extended range, equipped with a dual motor system. In pure electric mode, it can achieve a range of 180 km, meeting the needs of daily commuting in the city; Up to 1000 + km endurance can be achieved. In terms of batteries, BYD's ternary lithium batteries are used. " Huawei smart life hall of Shenzhen Zhuoyue center is talking about the performance indicators and parameters of sF5, such as battery life, battery, size, motor, etc. it is Huawei's employees who are talking about it“ We organized some employees who had worked in the automobile industry before, and concentrated on training for nearly a month, mainly on the introduction of sF5 knowledge and the sales process. "

The Huawei staff told reporters that the vehicles ordered in April could be delivered normally within a month and a half, but now it will take two or three months to place an order, and it may take the end of August to pick up the car. The company is speeding up production capacity.

The reporter noted that, except for the four words "Huawei sound" in the audio part and "Huawei intelligent selection" on the rear of the car, no other Huawei logo was displayed on the whole vehicle. The sales staff told the reporter that the operating system of the exhibition car and test drive car is still the original factory setting, and the system will be upgraded to Huawei hicar when it is officially delivered to users.

The net profit of selling a car is about 5000 yuan?

On May 18, Huawei issued an internal document saying that Yu Chengdong would be removed from the post of CEO of Huawei cloud with the approval of the president, but he was still CEO of consumer BG and CEO of new intelligent vehicle solution Bu, and Wang Jun was president of Bu of intelligent vehicle solution.

In fact, Yu Chengdong was officially pushed to the C position of Huawei's automobile business layout, which has already been followed. Since he was also CEO of Huawei cloud on April 9 this year, Yu Chengdong has published 16 microblogs, of which 9 are about sF5 jointly built by Huawei and Cyrus. At the same time, Yu Chengdong also frequently served as the platform: on April 19, Yu Chengdong appeared at the celex press conference during the Shanghai auto show; on April 20, Huawei's global flagship store in Shanghai, Yu Chengdong announced that Huawei's intelligent election officially launched the sale of Cyrus sF5, and this model will enter Huawei's stores and flagship stores.

"In just two years, Huawei has been subject to four sanctions from the United States, and they have been more and more dangerous, which has greatly affected Huawei's mobile phone business." Yu Chengdong said frankly that mobile phone is a high-end perceived product with high frequency, rigid demand, massive and high-value products, but the sales volume of mobile phone business in recent years has been short of supply due to the US sanctions. The only way to make up for this lack of business is smart electric vehicles“ Although the sales of cars are not as big as the sales of mobile phones, the value of their single products is very high. "

The personnel adjustment of Huawei is regarded as a signal for Huawei to increase its automobile business layout and make up for the loss of mobile phone business. According to the global smartphone brand sales data released by counterpoint research in the first quarter of 2021, Huawei's mobile phone shipment has dropped by 18%, with only 4% of the global market share remaining, and its market share has fallen out of the top five in the world. Huawei's first quarter report showed that due to the sales of glory and the decline of mobile phone sales, Huawei's first quarter revenue decreased by 16.9% to 150.57 billion yuan year-on-year.

The growth ceiling of smart phones is within reach, and homogenization and price war problems emerge one after another. As the next most promising intelligent terminal equipment, automobile has become an important grasp for Huawei to seek diversified development and explore new growth points. In particular, Huawei's determination to go deep into the hinterland of smart cars has become more firm after Huawei stripped off glory and the sales of its mobile phone business declined.

While searching, Huawei is holding hands with Cyrus. In fact, as a new energy brand of Xiaokang shares, celis can be traced back to 2016 when SF motors was established in Silicon Valley to produce high-end electric vehicles under development; In 2017, Xiaokang company plans to acquire 100% equity of inevit, an American battery system provider, at a price of $33 million. The founder of inevit is Martin Eberhard, the co-founder and first CEO of Tesla.

In March 2018, SF motors officially appeared in Silicon Valley of the United States and released two electric SUV concept models, sf7 and sF5. Later, he came back to China and announced its Chinese name as Jintang automobile, and later changed its name to sailis. In April 2019, Cyrus released sF5, which launched two versions of pure electric and extended range, but failed to splash. In 2020, the sales volume of Cyrus sF5 is only 732, and from January to march of 2021, only 150 vehicles are sold. In 2020, the net profit loss of Xiaokang shares reached 1.729 billion yuan, a year-on-year decrease of 2690.76%.

Huawei's huge traffic and halo have brought hope to Xiaokang shares, and its share price has risen steadily. Especially during the Shanghai auto show, Huawei announced that Cyrus Huawei smart select sF5 officially entered Huawei's flagship store and sold through Huawei's retail channels, Xiaokang shares rose and stopped several times.

In April, Xu Zhijun, Huawei's rotating chairman, once said at the Huawei analyst conference: "China has 30 million vehicles a year, and there will be more in the future. Even if we only focus on the Chinese market, it is enough to get an average income of 10000 yuan from each vehicle every year."

According to Tencent News "Shenwang", in terms of sales share, Huawei and car companies share about 10% of sales, and dealers can get 7% - 8% of sales.

According to this estimation, taking the four-wheel drive version of sF5 with a price of 246800 as an example, Huawei will get about 25000 yuan for each car sold, and the dealers will get 19000 yuan. Finally, Huawei's net profit of selling a car will be about 5000 yuan.

At the recent channel summit of Huawei in Greater China, Huawei said that the sales target of Huawei smart car in 2022 is 300000 units. If the net profit of 5000 yuan per vehicle is calculated, it will bring Huawei 1.5 billion yuan of profit.

It is worth noting that according to the data of the China Federation of passenger transport, the sales volume of Tesla in the Chinese market will be only 137400 in 2020, while Weilai, ideality and Xiaopeng will sell about 100000 units in the whole year. Huawei's target of 300000 units means more than twice the sales volume of Tesla.

Perhaps the order of magnitude of offline outlets has become the foundation of Yu Chengdong and Huawei. According to the public data, by the end of 2020, Huawei has established 12 flagship stores and more than 5000 experience stores in the world, covering the crowded areas of most cities“ Traditional luxury car brands, such as BMW, Audi and Mercedes Benz, currently have more than 600 dealers nationwide, most of which are in urban suburbs. The new forces of car making are more willing to arrange the exhibition hall in the central area with dense flow of people, but from 0 to 1, Weilai automobile has only more than 200 stores in China. " Yu said.

Greater ambition

It is worth mentioning that another "marriage partner" of Huawei, BAIC Blue Valley, has also been rewarded with "real gold and silver". On April 17, BAIC pure electric car brand arcfox launched the intelligent pure electric car alpha s, in which the alpha s Huawei hi version carries a complete set of Huawei hi intelligent car solutions. The basic pre-sale price of Huawei hi version is 388900 yuan, and the pre-sale price of high-level version is 429900 yuan.

On May 18, Wang Qiufeng, vice president of Jihu brand, told reporters in the 21st century economic news that orders for the hi version of alpha s Huawei had broken through a thousand, and would officially start to deliver small quantities to users in the fourth quarter of the end of the year. Since the launch of the new car, BAIC Blue Valley's stock, which has been hovering at 8-9 yuan / share for a long time, has gone up and down several times in a month.

As an unlisted company, Huawei has stirred up the spring water in the capital market by its own efforts. In addition to Xiaokang shares and BAIC Blue Valley, the stock price of Chang'an Automobile rose 8.46% on May 21. Chang'an Automobile, which once fell to 13 yuan, rose again to 25 yuan in less than two months. Just the day before, there was further news about the cooperation between Huawei and Changan Automobile.

On May 20, Chang'an Automobile announced that Chang'an Weilai New Energy Automobile Technology Co., Ltd., a holding subsidiary, was officially renamed avita Technology Co., Ltd., and jointly created an independent and controllable intelligent electric networked vehicle platform (CHN) with Changan Automobile, Huawei and Ningde times. Changan Automobile said that in the next five years, avita will launch five models based on CHN architecture. Among them, the model named E11 is based on a new generation of intelligent electric platform, positioning medium-sized SUVs and carrying Huawei hi intelligent vehicle solutions.

However, on May 24, a statement of Huawei made Huawei's auto concept stocks fall sharply. By the end of the day, BAIC Blue Valley (600733. SH) and Changan Automobile (000625. SZ) fell to the limit, Xiaokang shares (601127. SH) fell by more than 6%, GAC group (601236. SH) and Dongfeng Motor (600006. SH) fell by more than 4%. According to industry analysis, the sharp drop in the stock price of relevant automobiles may be closely related to Huawei's reiteration of "not making cars".

Previously, it was reported that Huawei was seeking control of arcfox, a subsidiary of BAIC Blue Valley, and there were also rumors that Huawei was jointly developing smart car chips with Changan Automobile. The above rumors and news triggered a sharp rise in related stocks. On May 24, Huawei clarified rumors about its car manufacturing and investment in auto companies.

So far, Huawei has not invested in any auto companies, Huawei said in a statement. In the future, it will not invest in any auto enterprises, nor will it hold or participate in shares“ We have selected BAIC, Changan and GAC as strategic partners to support them in building their own sub brands. Vehicles with Huawei's automatic driving solution can only use hi logo with Huawei's authorization, representing Huawei inside. "

In response to its cooperation with Jinkang sailis, a subsidiary of Chongqing Xiaokang group, Huawei said it was a supplier of electric components and hicar cabin parts for Cyrus sF5. At the same time, in order to solve the survival problem of Huawei's authorized mobile phone retail stores when Huawei's mobile phones are greatly reduced, Huawei supports some retail stores to sell the car, and the retail stores can obtain corresponding profits.

As an enterprise with ICT infrastructure and intelligent terminal provider, Huawei's auto layout has become more and more in-depth, from manufacturing parts for smart cars, to building a new business model with BAIC, Changan and GAC, to selling cars through its own channels, and reiterating "no car building" for many times.

At present, Huawei's intelligent car business is mainly in two ways: one is to adopt the traditional Tier1 and tier2 parts supply mode, and the other is Huawei inside mode, which is deeply bundled with automobile enterprises. From the overall layout of Huawei's automobile business, Huawei's ads full stack automatic driving solution is the most important core.

Huawei is trying to cooperate with more car companies by virtue of its advantages in software. However, the industry has different views on this mode of cooperation. He Xiaopeng, chairman of Xiaopeng automobile, believes that cooperation with Huawei is good, but based on long-term development, he is more optimistic about the combination of software and hardware. He Xiaopeng said frankly that "I used to do this mode in UC before, but later I died miserably."

Li Bin, chairman of Weilai Automobile Co., Ltd., also said that all software Weilai must develop itself, and it is impossible to obtain system capability through cooperation.

"We will also cooperate with others, but the core things must be made by ourselves. For example, the money made by mobile phone companies in the world is not as much as that of apple, because Apple has the best experience. So integrated R & D is very important. "

Worries and challenges

What is worth considering is that, for automobile enterprises, behind the rise in sales and share price of Huawei, they still have to think about potential crises and hidden worries.

In fact, it is not difficult to harvest a batch of "pollen" in the short term only relying on Huawei's traffic, feelings and offline channels. But when Huawei's filters fade away, does the public still have enthusiasm for Huawei's car sales? Ultimately, it still depends on the competitiveness of the product itself. It is a big cost for all major cities and Dahua to transform their experience stores. When more and more Huawei experience stores begin to sell cars, can a single store maintain profits?

"Our target for every salesman every month is to sell more than a dozen cars." On May 20, the sales staff of a sairis 4S store in Shenzhen told reporters that when asked whether there was pressure to complete the target, the staff said "it is OK at present".

Car sales often involve more complex after-sales systems. Some car dealers told reporters in the 21st century economic report that automobile sales need to complete a series of actions, such as clues, customer acquisition and experience, and the whole process is very complex. At present, it is extremely unlikely that consumers will place an order directly after seeing a certain car in the supermarket.

What's more, Cyrus, which Huawei took the lead, is a brand whose products and quality have not yet been fully tested by the market. The free expedition version of Cyrus sF5 released at the beginning of this year has been equipped with relevant Huawei configuration, but the sales volume is not optimistic. Once there is a product problem, what kind of responsibility Huawei needs to take is still unclear.

At the same time, in the current order volume of more than 10000 yuan, consumers have only paid 10000 yuan of intention money. Huawei officials said customers who started booking in late April will be delivered on time in May. According to the above-mentioned different sales personnel, it will take at least two to three months to deliver the vehicles ordered in May. At that time, what is the actual turnover and real conversion rate“ What is the gold content of "more than 3000 in two days and 6000 in a week"?

What we need to be clear about is that in the future, there will not be only one brand in Huawei's stores. According to Huawei's plan, other Huawei enabled brand cars will enter Huawei's intelligent selection platform in succession. It is expected that two SUVs will be released in the fourth quarter of this year, and at least 2-3 Huawei smart cars will be displayed in future stores.

"For Cyrus, with the help of Huawei's offline stores, it can help it build a good channel and save the cost of building its own stores." Some people in the industry told the 21st century economic report that traditional automobile enterprises have already established a very perfect channel network, so it is not significant for them to enter Huawei's sales system again. The head of the new forces of car building, also basically their own direct camp.

It is reported that Huawei will introduce many auto companies such as BYD, BAIC, Mercedes Benz and Chang'an to cooperate in selling cars. When the 21st century economic reporter asked the relevant person in charge of BYD for confirmation, his reply was "no comment".

However, the next one most likely to enter Huawei's smart selection channel will be BAIC Jihu“ The development and manufacturing time of polar fox alpha s is relatively early, so it needs to preempt mass production, so it does not carry too many Huawei parts and systems. However, the hi version of polar fox alpha s adopts Huawei's full stack solution. So new cars after the alpha s will also enter the corresponding channels. "

On May 18, Liu Yu, chairman of BAIC bluevale, said in an interview with the 21st century economic reporter that the other partner that uses Huawei's most parts at present mainly adopts the three in one electric drive system developed by Huawei's automotive division, which is also the general logical relationship why it entered Huawei's intelligent selection channel.

Wang Deng, Minister of market research and business innovation Department of arcfox, told reporters that Huawei smart selection is more like Xiaomi superior products, Netease strict selection, Jingdong jingzao and other similar concepts. It is mainly a retail network, and some partners with strategic cooperation with Huawei will enter the channel, including Huawei inside car model.

It is worth mentioning that Wang Jun once said in an interview that "the possibility of alpha s, the polar fox, entering Huawei's Mall is not ruled out.". It is understood that in the near future, BAIC Blue Valley executives met with Huawei to further discuss, including in-depth cooperation in Huawei's intelligent selection channel, equity, products and other aspects.

Even if it enters Huawei's channels, polar fox is very clear that it can't completely rely on Huawei. As of May 6, this year, 32 offline stores have been officially opened for external operation, and are still under construction. At the end of June this year, 60 stores will be officially put into operation, and 100 will be built by the end of the year.

Under the wave of new energy vehicles, there are many giants and surrounded by enemies. Can Huawei, which has been praised as the "altar", stand firm? Whether it's the Cyrus sF5 that Huawei helps to "sell" or the alpha s Huawei hi version that Huawei helps "build", it ultimately needs to rely on product strength, actual turnover and user's word-of-mouth verification.

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