Huawei Yu Chengdong: Confident of building Xilis into one of the most profitable car companies

Yu Chengdong, executive director of Huawei and CEO of consumer business, recently explained the new model of "Huawei Xilis", pointing out that Xilis and Huawei complement each other's advantages, Huawei plays its own advantages in car parts, intelligence, software, hardware, user experience, etc., and Xiaokang plays an advantage in traditional body design, manufacturing, especially range extenders.

Yu Chengdong introduced that Huawei has repeatedly emphasized not to build cars, but to focus on ICT technology, becoming a supplier of automotive incremental components for intelligent networking, helping car companies to "build" cars and build "good cars". There are three business models for Huawei to participate in the automotive business: one is to sell parts and technical solutions to vehicle companies as a parts supplier in a traditional capacity, and the other is the Huawei Inside model, which applies Huawei's full-stack intelligent vehicle solutions to products, and jointly defines and jointly develops them with partners to create a brand. However, product definitions, technologies, and component selection are all dominated by automakers, and Huawei does not participate much.

The cooperation model between Huawei and Xilix is the third type, huawei smart selection mode, in this mode, Huawei has more participation in product definition, styling design, marketing, user experience and other aspects, and has more in-depth cooperation with car companies. Up to now, the two models of Celis Huawei Smart Selection SF5 and "AITO Q&A M5" built by Huawei have helped Xilix to build the Channel.

Yu Chengdong said that at present, the retail format has become a retail network centered on shopping malls and online, and if car companies completely start from scratch to build a retail system with shopping malls as the core, rental costs and labor costs are very expensive. For Xilix, with the help of Huawei's existing retail system and service network, it can save a lot of costs in laying retail channel networks, and will also drive large-scale sales of Huawei's automotive BU parts to achieve a win-win situation. Yu Chengdong further said that with the new model of "AITO Q&A M5" and the product strength of new products in follow-up cooperation with Xilisi, relying on Huawei's strong channel retail capabilities, he is confident that Xilis will become one of the most profitable car companies.