<p>On March 16th, Richard Yu, Executive Director and Chairman of the Intelligent Automotive Solutions BU at Huawei, attended the China Electric Vehicle Hundred People Forum and delivered a speech. Richard Yu stated that Huawei is expected to turn losses into profits this year. The supply situation of the delayed launch of the Smart Selection S7 due to chip shortages is expected to improve soon, and a million-level luxury car will be jointly launched with Jianghuai in the future.</p>
<h2>Huawei's Turnaround is Imminent</h2>
<p>In the past few years, Huawei's intelligent automotive business has been in a loss-making state, with losses reaching as high as 10 billion yuan in 2022. However, with strategic adjustments and business expansion, the loss situation has gradually improved. Last year, losses decreased to 6 billion yuan, and Richard Yu expects to achieve profitability this year.</p>
<p>He revealed that since the release of the Smart Selection Solution, it has turned a profit in the first three months. The entire Automotive Solutions BU is also on the verge of turning losses into profits, and positive development is expected to begin from April. &#34;If this business continues to lose money, it will be difficult to sustain,&#34; admitted Richard Yu.</p>
<h2>Multiple Cooperation Models</h2>
<p>To accelerate the implementation of the intelligent automotive strategy, Huawei has adopted multiple cooperation models. The first is the HI model, with Changan Automobile as the only current partner; the second is the Smart Selection Car model, with companies such as SERES, Chery, BAIC, and Jianghuai joining.</p>
<p>Richard Yu stated that more model factories will be launched in the future, but due to resource constraints, the quantity will not be too high:</p>
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<p>Many car companies have strong capabilities of their own, and we hope to provide them with references through these model factories.</p>
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<p>He also emphasized that the models to be launched in cooperation with Jianghuai in the future will be priced at the million-level, targeting the mid-to-high-end market.</p>
<h2>Chip Shortages Plague Smart Selection S7, Expected to Improve in April</h2>
<p>Regarding the delayed launch of the Smart Selection S7 model in cooperation with Chery, Richard Yu explained that it was due to chip supply shortages and factory relocation. However, he expects the situation to return to normal starting from April.</p>
<p>Richard Yu also mentioned the &#34;feud&#34; with XPeng Motors. He believes that healthy competition in the field of intelligent driving will contribute to mutual progress:</p>
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<p>In terms of intelligent parking and intelligent driving, Xiaopeng Motors is the best among domestic car manufacturers. But today, after we have entered, we aim to reshape this industry. This industry is very dynamic, but I believe that the technology we provide can help everyone to innovate together and provide consumers with a better experience.</p>
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<h2>Huawei's Solutions Face Challenges in Models Below 300,000 Yuan</h2>
<p>Huawei's journey in intelligent automotive is not without challenges. Richard Yu acknowledged that due to factors such as cost, Huawei's solutions still face certain challenges in models below 300,000 yuan, requiring brand support.</p>
<p>However, he remains confident in the industry's prospects:</p>
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<p>I believe that Huawei's solutions and technology can successfully drive the transformation and upgrading of the automotive industry, helping Chinese car companies achieve commercial success in the era of electrification and intelligence.</p>
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<p>Last year, Huawei's losses decreased to 6 billion yuan, and Richard Yu expects to turn losses into profits this year. Richard Yu also mentioned the "feud" with XPeng, believing that the healthy competition in the field of intelligent driving between the two sides will contribute to mutual progress.</p>

Richard Yu: XPeng-W is currently the best in domestic intelligent driving, but now Huawei has entered the game.