Xiaokang shares disclose sales of Cyrus sold 3,160 units in March

On April 7, Xiaokang co., Ltd. announced the March production and sales express report, disclosing the data of its brand Xilis for the first time. In March this year, the production and sales of Xilix were 3465 and 3160 units, respectively, an increase of 1667.86% and 1310.71% year-on-year; the cumulative production and sales in the first quarter were 6808 units and 5044 units, an increase of 1812.36% and 1186.73% year-on-year.

Considering the poor sales of Cyrus SF5 in the past and the news of discontinuation of production, the industry speculates that the production and sales of Cyrus announced by Xiaokang Shares should be mostly contributed by the AITO Q&I M5 that has just started delivery.

According to the data, on March 5, 2022, the launching ceremony of the delivery of the AITO M5 was held simultaneously in Shanghai, Guangzhou, Hangzhou, Chongqing and other cities. Since now, the M5 has been delivered in 36 cities and more than 100 user centers. Thanks to the channel resources of Xilix and Huawei, AITO has laid out sales and service outlets including more than 500 experience centers and 150 user centers, and is expected to achieve a total of 1,000 experience centers and 300 user centers within the year.

Some auto industry analysts told Caijing Auto that thanks to Huawei's deep participation in the research and development, design and marketing of models, the "Huawei" brand of the Q&C M5 is more obvious, which makes the new car get higher attention and recognition. At present, the monthly sales of 3,000 vehicles means that the AITO brand has begun to take shape, and with the further expansion of sales channels, the M5 is expected to enter a period of rapid growth in the future.

The production and sales of the M5 model have increased significantly, but they still have not met the expectations of Huawei and Xilis. Xilis once put forward the slogan of "Cyrus Automobile Asks the M5 to ensure the production of 10,000 new cars in the first quarter" at the oath-taking conference in January this year. According to the plan, the M5 is expected to achieve small batch deliveries in February and the first batch of 5,000 users in March. However, judging from the actual production and sales of Xilix, there is still a long way to go from the expected goals of both sides.

In December 2021, Huawei cooperated with Xilix to release the high-end new energy vehicle brand AITO, and its first new car, the Q&I M5, was also officially unveiled. Compared with the previous Xilix Huawei Smart SF5, Huawei provides support for AITO in terms of product design, industry chain management, quality management, software ecology, user management, brand marketing, and sales channels.

In addition to the production and manufacturing of the M5, Huawei is deeply involved in the design, research and development, engineering technology, software and hardware, and sales of the model. The Q&I M5, which locates a mid-size SUV, is equipped with HUAWEIDriveONE pure electric drive range extender platform, An intelligent four-wheel drive system composed of Huawei's self-developed front asynchronous AC motor and rear permanent magnet synchronous motor, and a HarmonyOS smart cockpit, and has an in-vehicle application ecosystem with software and hard collaboration of Huawei terminal cloud services. In addition, the new car will be sold as a smart car on the Huawei channel.

According to the previous plan, the AITO brand will also release a pure electric version of the Q&E M5 this year, as well as a six-seat medium and large SUV, or will be named M7.

When talking about the sales target, Yu Chengdong, managing director of Huawei, CEO of Consumer BG, and CEO of Huawei's smart car solution BU, said, "Relying on these three new cars, I hope that AITO's monthly sales can exceed 30,000 units, this year's sales target of 300,000 units, and next year's hope to challenge the sales of one million units with partners." ”

Huawei, which has repeatedly clarified car-making rumors to the outside world, once again emphasized the concept of "helping companies build good cars" when the AITO brand was established. Yu Chengdong said that by empowering car manufacturers and helping car companies build good cars, he will provide assistance to car companies that have in-depth cooperation with Huawei and help them build the most profitable and commercially successful car companies.

In view of the goal of selling 300,000 units a year for the AITO brand and one million units next year, there is no shortage of voices in the outside world. In fact, the first model of Huawei and Cyris SF5, the Xilis SF5, encountered the embarrassment of "high driving low walking". The Xilis SF5 Huawei Smart Edition received great attention from the market at the beginning of its listing, and in the week since its launch, the order volume has exceeded 6,000. However, the performance of the Cyrus SF5 was mediocre. According to the Xiaokang Investor Relations Activity Record Sheet, in the whole year of 2021, the delivery of SF5 will only be about 8,000 units. In order to give way to the new model M5, SF5 once reported the withdrawal of Huawei's offline stores, while stopping new car bookings, and even fell into the rumor of suspension of production and sale. This "lesson from the past" has made the outside world question the future market performance of the M5.

In the face of external doubts, Wang Jun, COO of Huawei's intelligent car solution, once said: "Nothing is impossible. The first is to see whether the product is good enough, and the user can not buy it; the second is to see whether the sales channel is strong and perfect enough to sell the car. ”

An automotive industry analyst said that Huawei's technical advantages, ecological advantages, word-of-mouth advantages, and channel advantages are an important foundation for the rapid growth, bigger and stronger AITO brand. Huawei has formed a strong independent research and development capability in key technology areas such as intelligent cockpit and automatic driving. At the same time, Huawei has formed a cross-device interconnection intelligent ecosystem around the Hongmeng system, which can effectively improve the experience of vehicle-machine interconnection, which is just a major shortcoming of car companies. The deployment of Huawei terminal stores across the country can make the AITO brand quickly reach consumers. With Huawei's market reputation, consumers can quickly build awareness and recognition of the AITO brand. However, the asset-heavy business model of the automotive industry is very different from that of the consumer electronics industry, and considering the challenges of chip shortage and rising prices of battery raw materials, AITO's sales of 300,000 units this year and 1 million units next year are unrealistic.