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Image Source: Visual China

Beijing, July 7 (TMTPOST) – Huawei’s car business is the only business unit that is not generating profits but the tech giant wil continue to pour money into the sector, Huawei’s CEO Richard Yu said at the 14th China Auto Bluebook Forum 2022 on Thursday.

Huawei’s smart car solution business unit CEO Richard Yu said that extended-range vehicle is suitable for families that are looking to buy their very first car. He stressed that this type of vehicle that generates electricity with gasoline saves more energy than traditional fossil fuels-powered cars.

Huawei launched its second car model Wenjie M7 on Monday, which is priced from 319,800 yuan to 379,800 yuan. Statistics from Huawei show that over 50,000 orders on Wenjie M7 were placed within three days after the launch.

Wenjie M7 is an extended-range SUV. It is a 6-seat luxury smart electric SUV and adopts a “2+2+2″ 6-seat layout. The model is equipped with Huawei DriveONE pure electric drive & extended-range platform. Just like Lixiang One, it is equipped with extended-range power system. At the same time, rear-wheel drive and four-wheel drive models are launched, with zero-gravity seats and a newly upgraded HarmonyOS smart cockpit.

At the launch conference, Yu mentioned that EV charging stations are not common enough in first and second-tier cities in China, which is why extended-range models are the best options right now.

Yu stressed that Huawei is just a supplier and channel provider in the car industry and that it does not actually make cars. He stated that the car business is a cash-burning business that faces lots of challenges. According to Yu, Huawei’s car business burns over one billion dollars a year. It is the only business unit at Huawei that is currently losing money, Yu said. Huawei’s car business group has over 7,000 employees. The business group indirectly engages over 10,000 employees at Huawei.

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