Guo Mingyi said Huawei and Jianghuai Automobile jointly developed MPV, priced at about 1 million, and planned for mass production next year.

CTOnews.com August 1, Guo Mingyi posted a blog post on the Medium platform today, saying that Huawei is working with Jianghuai Automobile to develop a MPV with a price of 1 million yuan, which is expected to be in mass production in the second quarter of 2024, with a sales target of 50,000 vehicles in the first year on the market.

The contents of Guo Mingyi are attached to CTOnews.com as follows:

QQ MPV plays a key role in Huawei's long-term automotive strategy. The positioning of MPV in the automotive market is like the ultra-high-end positioning of Huawei's P / Mate series in the Android mobile phone market, with the goal of meeting the needs of high-end users, enhancing brand value and promoting technological innovation.

Sales MPV revenue is recognized by JAC, so models pay great attention to JAC's revenue. Even if the pessimistic assumption is that 2024 MPV sales only reach 20-30% of China's target, JAC's 2024 revenue can still significantly exceed the market consensus of at least 20-30%. Because the MPV is jointly developed by Huawei and Jianghuai Automobile, the net interest rate is also higher than the average level of the company.

It is expected that Jianghuai Automobile's existing product line (commercial vehicles, etc.) will be able to achieve QoQ / HoH and YoY shipment growth in 3Q23/2H23. It is worth noting that JAC's key customer, Lailai, will grow its shipments at 2H23 by about 100% HoH, driving the key growth of JAC 2H23.

Anhui, where Jianghuai Motor is located, covers the four-hour transportation circle in the Yangtze River Delta and is one of the most efficient production centers in China. The transportation cost of electric vehicle parts is low, which is the key long-term competitive advantage of JAC Automobile.