Chery Automobile Co., Ltd. is set to significantly enrich its product lineup by introducing new models developed in collaboration with Huawei next year. This strategic move was announced by Qiu Shilong, Executive Vice President of Chery, during a media session following the company’s third-quarter financial report.
Strengthening Brand Identity and Product Portfolio
Qiu Shilong highlighted the operational progress of Luxeed, a joint venture with Huawei, emphasizing its role in elevating Chery’s capabilities. “Luxeed’s operations over the past few years fundamentally reflect the process of Chery’s capability enhancement,” he stated. “For instance, producing cars in the 100,000 to 200,000 yuan range was an area where we previously lacked experience. However, through the development of the Luxeed S9 and Luxeed RX, we have increasingly relied on our own growing capabilities. This is a process of our intrinsic abilities advancing.”
The collaboration with Huawei is expected to bring innovative models that will diversify Chery’s offerings. “Currently, because the overall scale is not yet sufficient, R&D investment is relatively high, and profitability remains a challenge,” Qiu acknowledged. “Therefore, we need to achieve a certain scale. Through product focus, we can gradually optimize the entire brand and effectively solve the problem of independent operational capability.”
Luxeed’s Independent Operations and Manufacturing Qualification
Chery has taken significant steps to position Luxeed as a distinct entity, mirroring the operational model of new EV startups. “Chery has assigned Luxeed a separate company, a separate organization, and a dedicated team,” Qiu explained. “We are also building a dedicated factory for it. The goal is for it to operate more like a new force in the industry, rather than becoming just a slightly larger Chery, or a Chery with bigger cars or higher prices. We want it to forge its own unique path.”
This strategic push for independence is further evidenced by Luxeed’s recent development in securing its own manufacturing qualifications. Earlier this month, the Ministry of Industry and Information Technology’s “Announcement of Road Motor Vehicle Manufacturers and Products” (Batch 412) listed Anhui Luxeed New Energy Vehicle Co., Ltd. as a “proposed new vehicle manufacturing enterprise.” This effectively grants Luxeed the independent capability to manufacture vehicles.
Interestingly, Luxeed’s new approved production address is located at “No. 8 Wangjiang Avenue, Wuhu Economic Development Zone, Anhui Province.” This is the same address that Chery Automobile Co., Ltd. applied to cancel its production facility at in the same Ministry document. This indicates that Luxeed’s production qualification is not entirely new but rather a transfer of existing factory capacity and manufacturing entity status from Chery to Luxeed, reinforcing its independent operational structure.
Future Outlook
The partnership with Huawei and the establishment of Luxeed as an independent brand signal Chery’s ambition to compete more effectively in the rapidly evolving new energy vehicle market. By leveraging Huawei’s technological expertise and focusing on developing distinctive products, Chery aims to enhance its brand value and achieve sustainable growth. The move towards independent operations for Luxeed is a critical step in this strategy, allowing the brand to foster innovation and cater to a specific market segment with tailored offerings.
