The collaboration between Huawei and SAIC Motor Group has entered a new phase, marking a significant shift in the automotive landscape as they pivot towards a fresh brand aimed specifically at the younger demographicThis new brand, set to use the smart selection vehicle model, is anticipated to span a price range of approximately 150,000 to 250,000 yuan, distinguishing itself from Huawei's previous four automotive brands: Aito, Zhiji, Xiangjie, and Zunji, which targeted a broader market segment.

Confirmations from both companies regarding specific details about this cooperation remain elusiveRepresentatives from SAIC and Huawei have acknowledged inquiries but have not provided explicit insights into the budding partnership's nuancesThe lack of clarity raises questions about the strategic focus and what this new collaboration signifies for the automotive ecosystem in China.

If these reports are accurate, they could redefine the original direction outlined by Huawei regarding their smart selection vehicle initiativesBack in June 2022, Yu Chengdong, Huawei's Executive Director and head of its automotive segment, had expressed that the company had limited resources and manpower, thus could concentrate on only four distinct modelsThe current developments, however, suggest a more expansive vision.

Presently, Huawei’s smart selection vehicles comprise Aito, jointly produced with Seres, Zhiji with Chery Automobile, Xiangjie with BAIC New Energy, and Zunji with JAC MotorsThe emergence of a fifth name, potentially "Shangjie," could be indicative of further innovation in this collaborative approach.

Trademark applications filed by SAIC on January 13, for names including "SAIC Shangjie" and "Shangjie," provide a glimpse into this potential relaunchThe trademarks are primarily categorized under transportation and machinery, currently awaiting substantive examination, signaling SAIC’s intent to forge new ground with this endeavor.

Tracing back the branding of Huawei’s existing models, it would seem reasonable for "Shangjie" to embody the spirit of this new partnership

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With established ties between Huawei and the existing four brands, integrating the new venture seems architecturally sound given that this would follow a similar framework.

As it stands, official statements from SAIC and Huawei have yet to elaborate on this new collaboration's specificsNevertheless, insider reports hint at a tangible movement forward, indicating the premier model would likely evolve from existing SAIC vehicles under the Roewe brand, integrating Huawei’s sophisticated electronic and smart technologies.

The first model under the "Shangjie" banner is said to maintain a familiar design with minimal alterations while focusing on integrating Huawei's advanced technologies into the vehicle’s architectureRoewe initially birthed the Feifan brand, which recently transitioned back to the Roewe identity—underscoring an evolution in brand strategy.

What sets "Shangjie" apart is its calculated approach towards appealing to the youth market, as opposed to its predecessors focusing on bigger price bracketsIt is crucial to note, however, that while "Shangjie" aims at a younger audience, it will not compromise on quality or performance, thus keeping its pricing in the mid-to-high bracket.

The inception of "Shangjie" seemingly contradicts Huawei’s earlier announcements, which limited its partnerships to just four brandsYu Chengdong had clearly delineated those collaborative boundaries, suggesting any future partnerships would lean on either the Huawei HI model or purely component supply arrangements which are still viable paths for Huawei’s automotive ambitions.

Rumors surrounding shifts in the partnership dynamics arose as early as last November when GAC Group signed a deepened strategic collaboration agreement with Huawei to further its own automotive innovation through a fresh high-end smart electric vehicle brandSuch developments reflect an overarching shift in the automotive industry in China, where alliances are fluid, and companies are reassessing their strategic trajectories.

GAC's commitments extended to creating a new project company with a capital investment of 1.5 billion yuan, with intentions of leveraging both entities' strengths to cultivate a revolutionary vehicle brand founded on novel technologies and architectures

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GAC has explicitly differentiated its partnership from the aforementioned four Huawei models, suggesting a move towards innovative and diversified offerings rather than mere continuance of established strategies.

As GAC’s interactions with Huawei began reshaping, it became clear that the collaborations could diverge significantly from the smart selection vehicle philosophySome industry pundits speculate that even if GAC is pursuing a different model, it still draws upon the tenets of the smart selection structure.

The fluctuating market dynamics appear to underscore the urgency perceived among SAIC and GAC to strengthen their foothold in an increasingly competitive automotive marketDuring a shareholders' meeting in 2021, SAIC’s Chairman, Chen Hong, articulated aversion to singular reliance on any supplier for holistic solutions, emphasizing the necessity for autonomy and agency among local automakersThis philosophy has sparked deeper discussions regarding partnerships with key suppliers, leading to a reconsideration of how traditional automotive alliances should be structured.

The historical context with GAC, as one of the earliest adopters of Huawei's HI model, took a significant turn in March 2023 when it announced a halt to joint vehicle development on the Aion AH8 model in favor of a supplier relationship, concretizing their commitment to independent automotive initiativesThis reflective shift appeared prescient as both groups faced shrinking sales figures throughout 2024.

The automotive sector is bracing itself for significant turmoil as these once-thriving companies—SAIC and GAC—realized stark declines in vehicle sales in 2024. SAIC, for example, reported a 20% drop in wholesales to a total of 4.01 million vehicles sold, coupled with an alarming forecast of net profits plunging nearly 90%. GAC’s figures reflected similar woes as sales fell by over 20%, foreshadowing deep cuts in profit forecasts, prompting a reevaluation of dependent strategies.

In contrast, the smart selection vehicle brands born of Huawei’s partnerships have demonstrated resilience, particularly evident with the Aito brand's synergy with Seres

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