Mass distribution of the Luxeed S7 electric car, a collaborative endeavor between Chery Auto and the technological powerhouse Huawei, has finally commenced after encountering setbacks in production and delivery due to chip shortages, as stated by a Huawei executive on Saturday. Richard Yu, the general director and chairman of Huawei's smart car solutions, took to Weibo, a prominent social media platform in China, to announce the milestone, indicating that a substantial number of Luxeed S7 vehicles have already been produced and are en route to customers awaiting delivery.
Reports from local media earlier this month suggested that Huawei had outlined plans to address the supply chain challenges plaguing the rollout of its premium electric vehicle (EV) brand, with anticipated resolutions expected to materialize by April.
Troubles in production were initially flagged by Chery, who communicated concerns to Huawei regarding issues with a critical computing component supplied by the tech giant, causing delays in the delivery of the vehicles, according to an article by Reuters dating back to January.
Demand for Chery's debut offering under the Luxeed EV marque, the S7 sedan, has been robust, with over 20,000 orders recorded as of November 28th. Priced competitively at 249,800 yuan (approximately $34,600), the S7 has garnered significant interest among consumers.
In a noteworthy turn of events for Huawei, 2023 marked a significant uptick in revenue, representing its most substantial growth in four years, buoyed by a resurgence in its consumer division and revenue streams stemming from new ventures such as smart car components. This resurgence has also played a role in expediting the company's recovery from the adverse effects of U.S. sanctions.
Last year, Huawei made the strategic decision to spin off its smart car division into a standalone entity, a move that has been closely followed by industry observers. Yu's recent comments suggest cautious optimism regarding the division's financial performance, indicating a potential return to profitability as early as April after incurring significant losses in the previous year.
(Sourec:www.businesstimes.com.sg)
Reports from local media earlier this month suggested that Huawei had outlined plans to address the supply chain challenges plaguing the rollout of its premium electric vehicle (EV) brand, with anticipated resolutions expected to materialize by April.
Troubles in production were initially flagged by Chery, who communicated concerns to Huawei regarding issues with a critical computing component supplied by the tech giant, causing delays in the delivery of the vehicles, according to an article by Reuters dating back to January.
Demand for Chery's debut offering under the Luxeed EV marque, the S7 sedan, has been robust, with over 20,000 orders recorded as of November 28th. Priced competitively at 249,800 yuan (approximately $34,600), the S7 has garnered significant interest among consumers.
In a noteworthy turn of events for Huawei, 2023 marked a significant uptick in revenue, representing its most substantial growth in four years, buoyed by a resurgence in its consumer division and revenue streams stemming from new ventures such as smart car components. This resurgence has also played a role in expediting the company's recovery from the adverse effects of U.S. sanctions.
Last year, Huawei made the strategic decision to spin off its smart car division into a standalone entity, a move that has been closely followed by industry observers. Yu's recent comments suggest cautious optimism regarding the division's financial performance, indicating a potential return to profitability as early as April after incurring significant losses in the previous year.
(Sourec:www.businesstimes.com.sg)
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