(Yicai) June 14 -- The break-even point of the cars co-developed by Huawei Technologies and its automaking partners through the Harmony Intelligent Mobility Alliance is CNY300,000 (USD41,340), according to the chairman of the Chinese telecoms giant’s Intelligent Automotive Solutions Business Unit.

Because of its weak cost control capabilities, Huawei would lose money if it priced such cars below CNY300,000 and would face closure if it priced them below CNY200,000, Richard Yu said at the China Auto Blue Book Forum held in Beijing today.

“Many people are complaining that our cars are too expensive,” Yu noted. “Even though we want to sell our cars at a lower price, we are unable to do so.”

Huawei has advantages in terms of high-end technology development and can bring added value to products but cannot control costs yet, Yu explained. “Leading companies control supply chain expenses and manufacturing costs of each segment, but we cannot do that now,” he added.

Huawei’s Intelligent Automotive Solutions BU cooperates with carmakers based on three approaches: vertical parts supplier, intelligent systems provider through the Huawei Inside partnership model, and full-set solutions provider via the Huawei HIMA, formerly known as Smart Selection business model.

The reason why some car models co-developed by Huawei and Seres and Chery Automobile under the HIMA are priced under CNY300,000 is to allow more drivers to experience Huawei’s products and technologies.

The average price of products sold under Huawei’s HIMA is nearly CNY400,000, Yu said, noting that the sales volume of cars priced at over CNY300,000 is higher than those priced below CNY300,000 in China.

Editors: Tang Shihua, Futura Costaglione