Key Points
- Luxeed Reboot: Huawei and Chery have deeply restructured their EV venture, Luxeed (Zhijie 智界), with a new “Luxeed New Energy Company” providing full independence.
- Massive Investment & Control: Over ¥10 billion RMB ($1.4 billion USD) is being injected into the new Luxeed, with Huawei taking significantly more control over the entire supply chain.
- Explosive Pre-Orders: The new Luxeed R7 and S7 models garnered over 10,000 pre-orders within the first hour of their announcement.
- Chery’s Commitment: Chery (Qirui 奇瑞) has designated Luxeed as its “number one priority strategic project,” even halting its own luxury MPV project to reallocate resources.
- Uphill Battle Ahead: Despite the revamp, Luxeed has significant ground to cover, having sold 45,000 units in the first half of the year, which is less than 30% of the top brand’s sales under the Harmony Intelligence Mobility hierarchy.
The rumors are true, and the deal is massive.
Huawei (Huawei 华为) and Chery (Qirui 奇瑞) are officially rebooting their electric vehicle venture, Luxeed (Zhijie 智界), pouring in billions to give it a real shot at the top.
And the market is already responding in a big way.
Let’s break down what’s happening and why this is a huge deal for China’s hyper-competitive EV space.
The Billion-Dollar Pivot: A Deeper, Bolder Partnership
On August 7th, the two giants signed what they’re calling the “Luxeed Brand Strategic Cooperation Agreement 2.0.”
This isn’t just a press release; it’s a fundamental restructuring of their relationship.
Here’s the breakdown:
- Total Independence: Luxeed is spinning off into its own company, “Luxeed New Energy Company.” This new entity will handle everything—production, sales, and service—independently.
- Massive Cash Injection: The partners are investing over ¥10 billion RMB ($1.4 billion USD) into the new venture. That’s serious capital.
- R&D Army: They’re assembling a 5,000-person R&D team dedicated solely to Luxeed.
- Huawei in the Driver’s Seat: This new structure gives Huawei significantly more control. They will lead the entire chain, from product definition and manufacturing to sales and service.
This move makes Luxeed the first brand under Huawei’s Harmony Intelligence Mobility (Hongmeng Zhixing 鸿蒙智行) umbrella to have its own independent company.
It’s a clear signal that the previous model wasn’t working, and they’re going all-in on a new strategy.
- New Entity: Luxeed New Energy Company
- Independence: Full control over production, sales, service
- Investment: Over ¥10 billion RMB ($1.4 billion USD)
- R&D Team: 5,000 dedicated personnel
- Huawei’s Role: Leads entire supply chain (product, manufacturing, sales, service)
- Significance: First independent company under Harmony Intelligence Mobility
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The Pre-Order Frenzy: A Glimmer of Hope?
Just one day after the announcement, on August 8th, Luxeed opened pre-orders for its two new models.
The results were explosive.
Luxeed officially reported over 10,000 pre-orders within the first hour.
Here are the cars causing the stir:
- The new Luxeed R7: Starting pre-sale price of ¥268,000 RMB ($37,000 USD).
- The new Luxeed S7: Starting pre-sale price of ¥258,000 RMB ($35,600 USD).
This early hype suggests that despite past issues, the combination of Huawei’s tech and Chery’s manufacturing prowess still has a powerful pull on consumers.
From “Painful” Partnership to “Pure-Blood HarmonyOS”
Let’s be real, the road to this point has been bumpy.
The collaboration has been rife with friction, leading to delivery delays and brand setbacks that hammered the original Luxeed S7’s sales.
Chery Chairman, Yin Tongyue (Yin Tongyue 尹同跃), didn’t mince words about the initial challenges.
He admitted his team “didn’t adapt to the pace” and described working with Huawei’s famous consumer CEO, Yu Chengdong (Yu Chengdong 余承东), as a “revolution.”
“It has been more than just painful; it’s been a revolution… It has brought us too much pain and discomfort, but also too much satisfaction,” Yin stated.
Now, the dynamic has shifted. Luxeed Product Director, Hai Lantian (海蓝天), described the new model as “pure-blood HarmonyOS.”
What does that mean? Hai Lantian revealed that “CEO Yu [Chengdong] personally appointed dozens of experts from Huawei… to bolster the Luxeed team.”
Essentially, Luxeed has fully adopted Huawei’s management system, with Huawei leading everything from design and R&D to manufacturing and service.
Chery’s Big Sacrifice
To prove its commitment, Chery is making some serious internal sacrifices.
The company has now designated Luxeed as its “number one priority strategic project” with “unlimited resource investment.”
To back this up, Chery has officially halted its own luxury MPV project, the Exeed (Xingjiyuan 星纪元) E08, and redirected that team’s talent to Luxeed’s R&D.
This move addresses what Yin Tongyue previously described as internal “fights” over Chery’s limited production capacity.
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The Uphill Battle: Can Luxeed Catch Up?
Despite the fresh investment and hype, Luxeed has a lot of ground to cover.
The brand’s sales performance has been a sore spot.
- In the first half of this year, Luxeed sold 45,000 units.
- While that makes it the second-best performer under the Harmony Intelligence Mobility umbrella, it’s still less than 30% of the sales of the top brand, AITO (Wenjie 问界), during the same period.
The new Luxeed S7 and R7 models are the crucial test.
They will come loaded with upgrades, including:
- The latest Huawei ADS 4.0 advanced driver-assistance system.
- A new brand logo and refreshed exterior design.
- Upgraded intelligent driving hardware and cabin experience.
This launch isn’t just about selling more cars. It’s about proving that this new, deeper collaboration model can finally work and deliver the results both Huawei and Chery have been chasing.
All eyes are on whether this $1.4 billion USD bet on Luxeed will finally create a true contender in the EV market.
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