(Yicai) Sept. 24 -- Chinese telecoms giant Huawei Technologies has been expanding its presence in the Chinese automotive market with the release of new brands and the deepening of existing collaborations.

The Shangjie H5, the first model under electric vehicle brand Shangjie, co-developed by SAIC Motor and Huawei’s full-set solutions business Harmony Intelligent Mobility Alliance, was officially launched yesterday. It began presales on Aug. 26 and has already secured about 160,000 orders.

Equipped with Huawei’s advanced driver-assistance system ADS 4, the Shangjie H5 is priced at CNY159,800 to CNY199,800 (USD22,600 to USD28,300), targeting the mainstream consumer market. It is the first HIMA-backed model priced under CNY200,000.

Shangjie faces significant cost pressure, and the first model will likely incur losses, said Richard Yu, chairman of Huawei’s Intelligent Automotive Solutions Business Unit. However, he expressed optimism that the high sales volumes could help the brand achieve profitability quickly.

Huawei announced on Sept. 19 that it would expand its partnership with Guangzhou Automobile Group with the launch of the new Qijing premium smart EV brand. The first Qijing model will be released next year in both battery electric and extended-range powertrain versions.

GAC announced in March that it would establish a subsidiary to launch Huawang, a new luxury intelligent EV brand in collaboration with Huawei. This partnership is deeper and more innovative than the usual HIMA model, a source at the Guangzhou-based carmaker told Yicai back then.

Qijing adopts a new cooperation model that is different from HIMA and Huawei Inside, the model when Huawei is only an intelligent systems supplier, according to industry insiders.

Under this new model, Huawei supports automakers across the entire product lifecycle, integrating processes, co-building teams, and expanding cooperation to include intelligence, ecosystem, and brand synergy. But unlike HIMA, where Huawei exerts significant control, this new model allows automakers to retain greater decision-making authority.

Other Chinese automakers have also deepened their cooperation with Huawei to adopt a similar model, including Dongfeng Motor on the Mengshi and Voyah brands and Changan Automobile on Avatr Technology.

This shift reflects a growing emphasis on differentiating products based on automakers’ unique strengths, rather than relying solely on Huawei’s technological reputation.

Differentiation can be achieved through distinctive exterior designs and personalized features, with each automaker’s manufacturing heritage and design language serving as a key competitive advantage, a spokesperson for Dongfeng Motor told Yicai.

Huawei collaborates with automakers under three approaches. The first is vertical parts supplier, when Huawei is a traditional tier-one supplier providing carmakers with one or multiple intelligent components.

The second approach is Huawei Inside. Under this, the company provides automakers with intelligent systems, such as autonomous driving systems. So far, Huawei is adopting this model with 11 car brands, such as GAC’s Trumpchi, Changan Auto’s Deepal, and BAIC Group’s Arcfox.

The third approach is HIMA, formerly known as Smart Selection. This model sees Huawei as full-stack solutions supplier, giving it a leading role in product definition and terminal sales. The five brands under HIMA are Aito with Seres Group, Luxeed with Chery Automobile, Maextro with JAC Motors, Stelato with BAIC, and Shangjie with SAIC.

HIMA, which has been the most successful approach so far, delivered 52,700 units in June, 47,800 in July, and 44,600 in August, marking three consecutive months of decline. Over 15 vehicle models on the market are equipped with Huawei’s Qiankun ADAS or HarmonySpace 5 intelligent cockpit system.

Editor: Futura Costaglione