Actual exploration of Huawei’s car sales: In half an hour, 20 people asked if the nearby Tesla business was robbed?
Huawei’s car sales have set off two storms: one in the automotive industry and the other in the secondary market.
Under various rumors of investing in auto companies, Huawei’s “Statement on Huawei Not Making Cars” caused the stock prices of “Huawei car-making concept stocks” such as BAIC Blue Valley, Changan Automobile and Xiaokang to plummet.
However, a recent visit by Sina Finance found that Xilishi SF5 of Xiaokang shares has already tasted the “sweetness” by entering Huawei’s store sales. A Huawei store clerk told Sina Finance that due to too many orders, Cyrus’s factory is stepping up production, and now it takes up to 3 months to queue up for delivery.
The rise of Huawei’s car sales is not good news for Tesla and the new domestic car manufacturers. Sina Finance observed in Huawei’s global flagship store on Nanjing East Road, Shanghai for half an hour, and 20 car owners came to inquire and Test drive. In the shopping mall where the Huawei flagship store in Shenzhen is located, compared with the nearby Tesla store, the customer flow of Huawei’s store far exceeds that of the latter, and there has even been a situation of sales staff switching between the two brand stores.
A Huawei store clerk bluntly said that he has met many users who wanted to buy Tesla, but because of Tesla’s continued negative news, they switched to Huawei.
Huawei, which claims that it does not build cars, may not bring less shock to the automotive industry than it does.
Xiaoding and Dading
A month ago, Huawei announced that Cyrus Huawei Smart Selection SF5 officially entered the Huawei flagship store. Let this little-known brand of new energy vehicles enter the public eye.
Two days after the start of sales, Cyrus officially announced that the order for the product exceeded 3,000, which far exceeded the sales of Cyrus SF5 in 2020, which shows the halo effect of Huawei’s brand.
On May 26, at Huawei’s global flagship store on Nanjing East Road, Shanghai, although it had just experienced heavy rain, it did not affect the enthusiasm of users to go to Huawei stores to see cars and test drives. Sina Finance found that within half an hour, there were about 20 people looking for shop assistants to inquire about car viewing or ride experience.
According to the clerk, Cyrus Huawei Smart Selection SF5 uses Huawei elements in the electric drive system, audio and car system. The car adopts an extended-program design, with a battery life of 180km on pure electric power and 1,000km on full fuel and electricity.
Compared with the information announced at the April 20 press conference, the Huawei Smart Selection SF5 currently sold in Huawei stores only has a four-wheel drive version priced at 246,800 yuan, while a two-wheel drive version of 216,800 yuan has not yet settled. At the same time, the vehicle’s optional colors are relatively limited, and the vehicle’s central control system also needs to be upgraded to Huawei HiCar when it is officially delivered.
However, this did not affect the booking enthusiasm of Huawei fans.
According to the booking rules announced by Huawei, users can pay 1,000 yuan of intent in Huawei Mall (commonly known as Xiaoding by shop assistants), and then can test drive in supported stores. If you confirm the purchase, you need to pay a car purchase deposit of 10,000 yuan (commonly known as Dading). The previous 1,000 yuan intention money can be converted into a car purchase deposit, and the balance will be paid when the vehicle is delivered; if the application is cancelled, the intention money will be returned to the original payment account.
The clerk said that the orders at the end of April will be delivered in the first batch at the end of May, while subsequent orders will have to be queued. It will take 2-3 months for reservations to be delivered now. “I don’t know how many cars have been sold, but I don’t know the numbers. But this car is relatively hot and it is still scheduled for production. Cyrus and their production capacity cannot support that much. .”
Earlier, “21st Century Business Herald” mentioned that a sales executive of Celes 4S store said that the order volume of Huawei Smart Selection SF5 has exceeded 10,000. However, whether this number is the sum of the order volume of the Cyrus + Huawei channel, including whether the measurement index of the order volume is “large set” or “small set” is unknown.
In the Shenzhen Vientiane World Huawei’s global flagship store, a clerk told Sina Finance that two weeks after Huawei’s Smart Selection SF5 entered Huawei’s stores, Huawei’s stores across the country have already generated 6,000 “grand orders”. There is currently no specific order data. Accurate numbers.
Deep and snatch
It is worth noting that there are not many Huawei stores that sell and support the test drive of the Huawei Smart Selection SF5.
According to the information officially released by Huawei, the first batch of test-driving cities will cover Shanghai, Shenzhen, Chengdu and Hangzhou on April 20; on May 30, 13 cities including Beijing, Guangzhou and Chongqing will be added. Due to the requirements for store area for vehicle display and test drive, in the first batch of cities covered, only a small number of Huawei flagship stores and smart living halls support test drives.
The above-mentioned clerk said that in addition to the flagship store directly operated by Huawei, the authorized store will be remodeled and the car sales will gradually be laid. “There is no clear consistency in the renovation of the stores. Some shopping malls may have a faster process, but some have to communicate with the property. Then the vehicle must be brought in, and the parking spaces and other issues must be resolved.”
Although Huawei’s car sales are still in the early stages, its performance in terms of orders has already shocked many well-known new energy vehicle brands.
Huawei covers a large number of offline stores and is indeed very imaginative in selling cars. As of the end of 2020, Huawei has established 12 flagship stores and more than 5,000 experience stores around the world. Although not every experience store can display vehicles and test drives, with the support of the Huawei brand and user base, it will still bring changes to the pattern of the automotive retail industry.
The clerk of the Shanghai flagship store told Sina Finance that many car-watching users had been transferred from Tesla. “Some users originally wanted to buy Tesla, but Tesla has become too negative recently and turned to ours.”
In the mall where Huawei’s flagship store in Shenzhen is located, there is also a Tesla store, but in comparison, the passenger flow of the Tesla store is relatively bleak. Sina Finance even met a Huawei store clerk who had just quit from Tesla. She went through four rounds of interviews and went through a two-month process. Finally, she officially joined Huawei in May.
“Huawei did a good job of keeping secrets. When I came, I didn’t know that they had this car. I only knew that they had a car business. After learning about their Huawei HiCar system, I came over when I was quite interested.” She told Sina. Caijing said that Huawei will certainly introduce more brands of auto products for sale in the future, but the specific brands are unknown.
In April of this year, BAIC released the first Huawei inside smart luxury pure electric car BAIC Alpha S (Huawei HI version). This product is also the first mass-produced model equipped with Huawei’s high-end autonomous driving ADS and Hongmeng OS smart cockpit. Compared with Huawei Smart Selection SF5, BAIC Alpha S’s Huawei brand is deeper, and it is also considered to be the next model most likely to enter Huawei’s sales system. On May 26, Polar Fox Alpha S (Huawei HI version) production line verification vehicle officially rolled off the production line at Beiqi Langu Magna Zhenjiang Plant.
In May of this year, Huawei also removed Yu Chengdong from the position of CEO of Huawei Cloud and added the CEO of BU, a smart car solution. It also further shows that Huawei will greatly strengthen the collaboration between consumer business and smart car BU in the future.
At the Huawei Greater China Channel Summit held recently, Huawei even set a goal of 300,000 smart cars sold by Huawei in 2022. In contrast, Tesla’s sales in the Chinese market for the whole year of 2020 are only in the order of hundreds of thousands of units, far surpassing several new car manufacturers such as Weilai, Ideal, and Xiaopeng.
Hidden worries and challenges
When talking about why Huawei sells cars, Yu Chengdong said that after being sanctioned by the United States many times, Huawei’s mobile phone business has been affected. After thinking about it, Huawei decided to sell cars to make up for the decline in revenue and profits caused by the impact of mobile phone business sales.
Regarding the sales share of Huawei Smart Selection SF5, many Huawei store clerks are not clear about it. According to media reports, the division between Huawei and automakers has accounted for about 10% of sales. Take the four-wheel drive version of Huawei Smart Selection SF5 priced at 246,800 yuan as an example. For every vehicle sold in Huawei stores, you can get a share of more than 20,000 yuan. If we follow the sales target of 300,000 units in 2022, the revenue will be in the order of billions.
This is indeed a choice that Huawei has to make.
The Shanghai flagship store clerk told Sina Finance that at present, Huawei mobile phones are basically out of stock. Under the shortage of cores, only a few models are in stock. And if the user has booked a car, they can help apply for a short-selling cell phone.
In the Shenzhen flagship store, although the passenger flow is large, there are not many users who really look at mobile phones. “Because it’s useless to watch, many are out of stock. For example, Mate 40 is out of stock, only Mate 40 Pro is in stock.” She said.
As the mobile phone business continues to decline, selling cars can be said to have solved Huawei’s urgent need. But it is not without challenges.
First of all, in terms of vehicle supply, Huawei will choose brands and products that use its own smart car solutions. However, the R&D and production cycle of automobiles is long. This is why Huawei currently only sells Cyrus Huawei Smart Selection SF5. Although it uses Huawei elements, it is not actually equipped with Huawei smart car solutions. Relatively speaking, the development and production cycle of the most critical autonomous driving technology and Hongmeng OS cockpit technology can be shortened.
Secondly, after car companies choose to cooperate with Huawei, their products will be branded more by Huawei, which is a double-edged choice. On the one hand, it can increase product exposure and sales, but on the other hand, it may also weaken brand independence.
During Sina Finance’s visit to Huawei’s stores, some users said that they did not know that the manufacturer of Huawei Smart Selection SF5 was Cyrus of the Xiaokang Group, and more often saw the name of Huawei Smart Selection.
Finally, Huawei is only responsible for the front-end sales link of Cyrus Huawei Smart Selection SF5, and Cyrus will complete the specific delivery and after-sales. As a little-known niche brand, it is still unknown whether Cyrus can deliver the large number of orders brought by Huawei on schedule and guarantee the delivery experience of vehicles, which meets the expectations of Huawei users.
When Huawei’s smart selection of car brands increases, Huawei is not responsible for delivery and after-sales service, and it is difficult to guarantee a unified user experience for products such as mobile phones. This will be a big test for Huawei’s reputation.
It is reported that Cyrus Huawei Smart Selection SF5 will hold the first batch of user delivery ceremony tomorrow at Chongqing Liangjiang Smart Factory. What is the experience of the first car sold by Huawei at that time will also usher in the answers given by the first batch of car owners.