Today we are going to talk about Huawei. How much destruction did the U.S sanctions cost to Huawei in honest? It was huge. The consumer business had just become its number one business in 2018, but from May 2019 the growth was halted immediately by the sanctions. In 2021, its smartphone bill is forced out of the ranks and the consumer business Revenue was even cut in half. Meanwhile, huaweis Osa business has also suffered heavy losses. The proportion reached 48 in 2018, but only 35 percent in 2021.. At this point, the most depressing issue for Huawei is to get its consumer business back as soon as possible for an unlisted company. This is a matter of life and death, so in 2021 Huawei started selling cars in its own stores. At first Huawei was just helping. Others sell their cars, but as things progress Huawei become more involved from creating new brands with car companies control the product definition called component Supply sales Channel and marketing to replicating this model with more car companies and forming an alliance in the Auto industry in China. Huawei has gradually changed from an outsider to a force to be reckoned with, so just the Watch Role is Huawei playing. Why does this company dare to venture into a new era with no precedent to follow, even though this situation is extremely bad in this video? I will show you how and why Huawei is getting into automotive industry from three aspects. Thank you lets be clear.

Many years ago, ranjong fi founder of Huawei has already said that Huawei will not build cars, because first, the company will not invest in building factories. Nor will it buy production lines to build Huawei branded cars. Second, it will not invest in car companies or become a shareholder third selling. Cars is meaning to solve its survival problem of its stores and fill the revenue Gap after the shop decline in smartphone sales. Thus Huawei and the Chinese car company service created a new brand Ito, but we prefer to call it one year in China. The difference is that Ito is a cost brand and Huawei 1G is not the official name for this Huawei ecosystem automobile Alliance. In fact, any car companies that wants to participate in this Corporation will become a member of Huawei winter for many coming that want to rather trend of the current Automotive Evolution. To increase its value, huaweis ability and influence are very helpful, but it means that they need to give up some control over product development and marketing. This is what we call huaweis Smart selection model. Currently Sirius is the first car company to get involved. The corporation has been going on for more than a year launching three electric cars one after another, and in 2022 there were already more than 70 thousand cars sold following series: theres information on gec group and the baic group joining the corporation later. But why havent? We see any traditional, Auto Giants or the new forces partnering with Huawei.

The companies on board are only ones with insufficient ability and intelligence and marketing. This is the next thing we will be talking about. Huawei is now playing a new role in the automotive industry that has never been seen before. If I were to Define Huawei store, I would describe it as combination of super supplier and super dealer. A super supplier Huawei has ads Vos and hos. These systems can cover most necessary parts for building smart EVS, such as components and solutions of ICT, digital Service System, customer familiarity, product definition, capability and Industrial design, capabilities which are generally lacking in the auto Industries, but very important, although this should be from suppliers when it Comes to intelligent EV, these are more crucial than Machinery. As super dealer, Huawei has opened more than 1 000 stores in China within a year catching on Toyota and hunger. Giving that companies like Huawei has fought its way out of thousands of electronic companies. They have a fast, efficient and determined execution in a store, has very strong sales capabilities, plus huaweis consumer department is doing marketing itself. Recently, you can see the Huawei ranges. Logo was already on the Idols promotional stuff, and you can hear salesman says that they are selling Huawei cars, which shows that it has started using its own brand popularity and loyalty to sell cars. Therefore, Huawei has created an unprecedented business model in the Auto industry. Under this model, car companies like Sirius need to keep an open mind and let go some of the duties and the profits that once belongs to them, whether its Volkswagen, Toyota, Mercedes, Benz or BMW.

This compromise is obviously not acceptable, but for those who are in a dire need for engineering and Manufacturing Evolution, Huawei is their best and only choice. For now. For those of you familiar with our shoe youll, probably remember the Xbox alpha s and Avatar 11.. Both of them are backed by Huawei, but only the intelligence part. It does not responsible for selling them. This mode is called hi Huawei inside there are currently three panels of the hi model, Bic, whose arcfox is basically not selling JC good food cooperation is still pending and Chang, whose Avatar is not everyones hope in the past. Wanji is the former CEO of intelligent vehicle solution. Bu referred to as a car. Bu was in charge of the high model, but the huge investment did not brought back. The expected Revenue. Therefore, Huawei realized that if it only provides intelligent solutions but without a close look at product definition, sales Channel and influence levels, the bottomless investment will not be sustainable. Maybe the fact that Guangzhou was recently suspended has something to do with it and executive director of Huawei. Ceo of the consumer, PG and copio has took charge of the entire car Department of Huawei. This put out a clear signal. Huaweis car bu is started to have specific profit targets. Vision, dont have set a mandatory code to make huaweis car bu profitable in 2025 and help car companies sell 1 million cars. Consequently, we will say that Huawei will push harder for the smart selection motor, putting the Huawei 1G brand on more cars.

As for the hi mode will probably become a corporation option within the smart selection model foreign, because Huawei has heavily involved in the car making process except the actual manufacturing. The serious sanctions from the United States have really put huaweis business in Hardware to code. It is difficult for it to make a breakthrough in a short time, but its software can break through the restrictions and become independent. Software ability is precisely what Auto industry needs during this changing time. Perhaps selling cars was just a huaweis plan for the survival. At the beginning, but we came to realize that it has once again shows its typical aggressiveness, which is once they make up their mind about something they will conquer any obstacle they encounter. What do you think about it? Do you think Huawei can survive using this business model under all sanctions? Let me know in the comments see you next time, foreign.