1、Insights on Huawei Auto(2024)Yiche Research InstituteHow Huawei Can Better Take on BBAAuthorsDirector/Chief AIndustry AIndustry ALijun ZhouYing GaoBenya ShiVisual DQiang ZhangSo far in 2024,BBA have been mired in a price war and sales funkwhile AITO has upped the ante and the Huawei“Foursome”hasacce

2、lerated expansion into the high-end car market,further putting pressure on BBAThe three years of the pandemic(2020-2022)completely disrupted the China strategies of BBA(Mercedes,BMW&Audi),as their product refresh efforts have been way behind the evolution of the Chinese car market where buyers are b

3、ecoming more middle-aged,female,single and older.From 2023 to the first half of 2024,BBA mechanically tried to push forward electrification and smartification but to no avail,as the three core groups of products 34C(3 Series,A4L&C-Class),35C(X3,Q5L&GLC and 56E(5 Series,A6L&E-Class)were mired in a pr

4、ice war with mediocre sales,resulting in departure of dealers.This condition is only going to get more worse in the second half of 2024;In sharp contrast,competitors in the Chinese brand camp like Li Auto,Denza,AITO,Xiaomi and BYD launched a slew of new products that were more energy-saving,more hig

5、h-end,more stylish and more distinctive during the same period better catered to new Chinese consumer preferences.As a result,their sales in the high-end car market grew significantly.Huawei was certainly one of the best performing during this stretch with the rise of AITO starting in October 2023 a

6、nd the M7 and M9 together pushing monthly sales of the AITO brand past 30,000 units to even around 40,000 units in the first half of 2024.AITO was able to gain significant share in the high-end car market in a matter of only 6 months,inspiring Huaweis other three brands LUXEED,Stelato and Maextro to