(Yicai) Nov. 10 -- Chinese telecoms giant Huawei Technologies has kicked off presales of its first smart vehicle model developed with Chinese carmaker Chery Automobile.

Priced from CNY258,000 (USD35,415), the Luxeed S7 is a C-class sedan, which will be the first model equipped with Huawei's latest operating system HarmonyOS 4, intelligent chassis, and new generation motor system, the Shenzhen-based company announced late yesterday. Sales of the Luxeed S7 will begin on Nov. 28.

In addition to Chery Auto, Huawei also cooperated with Chinese carmaker Seres Group to launch smart car brand Aito. The latest Aito-branded model, the M7, launched in September, becoming a hit in the Chinese auto market.

Huawei has three approaches when partnering with carmakers: vertical parts supplier, intelligent systems provider through the Huawei Inside partnership model, and full-set solutions provider via the Huawei Smart Selection business model. Huawei's collaboration with Seres on Aito and with Chery Auto on Luxeed fall in the third category, the one with the most intense cooperation.

Among these three approaches, the third has been the most successful so far, while the first two have yet to achieve significant commercial results.

Aito, the first smart car brand under the Huawei Smart Selection business model, has achieved good results. Total deliveries of the Aito M5 exceeded 120,000 units, customers paid non-refundable deposits for more than 86,000 Aito M7s in only 50 days after its release, and the blind bookings of the yet-to-release Aito M9 already exceeded 25,000 units, Richard Yu, chief executive officer of Huawei’s Intelligent Automotive Solution Business Unit, said at last night's press conference.

However, the success of Aito cannot satisfy Huawei's ambition in the automobile industry. In fact, the company launched Luxeed, its second brand under the Huawei Smart Selection business model. Huawei has applied for registration of several trademarks of Luxeed, both in Chinese and English.

The Luxeed S7, targeting the middle- and high-end urban pure electric coupe market, aims to compete with Tesla's Model 3, according to a research report by Shenwan Hongyuan Securities. Considering market channels and the competitive pressure from vehicles at the same price range, the monthly sales of the Luxeed S7 after its launch are expected to be between 5,000 and 7,000 units or exceed 10,000 units if the stores' distribution capacity surpasses expectations, the report noted.

Besides Seres and Chery Auto, Huawei has also cooperated with BAIC BluePark and JAC Motors under the Smart Selection business model. BAIC BluePark is working with Huawei to build a smart high-end pure electric car, expected to be launched next year. JAC Motors joined hands with Huawei to develop a high-end multi-purpose new energy vehicle priced at around CNY1 million (USD137,465), expected to be mass-produced in the first half of 2025.

Editors: Tang Shihua, Futura Costaglione