Kann die von Huawei aufgestellte Aufgabe, in vier und einem halben Monaten über 10.000 Einheiten zu verkaufen, den Erfolg des Mengshi-Fahrzeugs wenden?
With its new card, Mengshi has made a loud and urgent move.
Recently, the Dongfeng Mengshi M817 was officially launched. This new intelligent off - road vehicle, with a starting price of 319,800 yuan and a maximum time - limited benefit of 70,000 yuan, is regarded externally as the "turning point" of the Mengshi brand.
An informed source told "Caixin" that as a close partner of the new vehicle and future models, Huawei has set a "sales commitment" for the M817 to sell 12,400 units within four and a half months, while the internal expectation of the Dongfeng Group is 15,000 units.
Regardless of the product positioning or Huawei's "guarantee", the real crisis of the Mengshi brand in the three years since its establishment cannot be overlooked behind the M817.
In 2023, Dongfeng Mengshi launched its first model, the 917, with an official guide price ranging from 637,700 to 1,098,000 yuan. However, the product highly anticipated by Dongfeng has never achieved the expected market performance in the past two years.
According to statistics from an independent source, the total sales volume of all Mengshi 917 models in the first seven months of 2025 was only 689 units. Among them, 632 units were range - extenders, which is almost half of the sales volume compared to the previous year. The continuous slump in sales has caused a series of negative impacts: Interest in the Mengshi brand has declined, the sales channels are generally in the red, and the vehicle manufacturer is under great pressure in terms of profitability.
In a Mengshi experience center in Beijing, "Caixin" noticed that due to the massive losses over the past two years, almost two - thirds of the area of the new - car exhibition was given to other brands. Although such scenes are not uncommon in today's automotive market, they usually occur with brands like Infiniti and Chevrolet, whose market shares are becoming increasingly marginal.
After a profit warning from Dongfeng Motor Group Co., Ltd. (00489.HK), the consolidated net profit for the first half of 2025 is estimated to be between 30 million and 70 million yuan, representing a decline of 90% to 95% compared to the previous year. In addition to the sharp decline in sales of joint - venture brands, Dongfeng Motor Group has admitted that the continuously increasing investments in research and development, brand building, and sales channels of its own company are also important reasons for the weakening of the company's performance.
As an important part of its own luxury new - energy brand, the contradiction between Mengshi's sales volume and high investment is obvious. It can be seen that it is urgent for this brand to increase sales.
Industry insiders have pointed out that the price generosity of the M817 is only the first step the company takes to overcome the crisis. If the brand wants to reverse the situation of the entire brand by changing a vehicle model, it must solve more complex variables than just "pricing".
The desperate turn from luxury off - road to "affordability"
The final price of the entry - level model of the M817 is 319,800 yuan, and the top - end model costs no more than 350,000 yuan. This price is 10,000 yuan lower than the pre - sale price. Together with the new - car market - entry benefits of up to 70,000 yuan, the order - confirmation rate in many branches in North China has reached over 40%, far exceeding the industry average of 30%. This tactical combination has quickly attracted the attention of the industry and is also a concentrated response of Mengshi to the current crisis.
The exterior of the Mengshi 817
Mengshi's active adjustment in the dimensions of product, price, and communication means a change in the direction decision. As a key project of Dongfeng Motor Group in the transformation to new energies, Mengshi was highly anticipated from the beginning. When launching the Mengshi 917, Dongfeng hoped that with its military background and off - road DNA, the vehicle would open up a luxury new - energy off - road segment for its own brand.
But the gap between ideal and reality quickly emerged. From August to December 2023, the sales volume of the Mengshi 917 was only 824 units. In 2024, it increased to 2,101 units, but in the first seven months of 2025, it dropped to 689 units again. Compared with the original strategic vision, the market reaction was almost cold.
The feedback from the sales channels was even more direct. A sales manager near Dongfeng Mengshi told "Caixin" that currently all direct - sales stores of Mengshi are in the red. "Now the goal of the company's headquarters is not even to make a profit, but to 'lose less'."
In fact, the price adjustment of the M817 was not planned from the beginning. The above - mentioned informed source said that Dongfeng originally hoped that this vehicle would succeed the 917. Considering the research and development costs, the initial price was set between 400,000 and 500,000 yuan, and no Huawei intelligent driving technology was to be installed.
But after a market study, the industry was rather pessimistic. Finally, the top management of Mengshi had to bear the pressure and push the price of the vehicle into the range of 300,000 yuan.
Therefore, the decision to focus on "affordability" and "Huawei intelligent driving technology" was not included in Mengshi's original plans. This not only means that it has to re - understand user needs but also re - prioritize technological positioning and brand building. The M817 not only bears the hope of a sales turnaround but also the multiple tasks of stopping losses in the sales channels and restarting the brand.
After simultaneously adjusting the pricing, technological presentation, and communication rhythm, the M817 has opened a gap. Industry insiders have said that this gap can at least give the brand a breather in the short term and also effectively relieve the pressure on the existing sales channels to make a profit. But new problems have also emerged: Do users want to hear Mengshi's new story?
Is Huawei's intelligent driving technology the real star? The story of "intelligent off - road driving" is hard to tell
In interviews with the media, both You Zheng, a member of the Party Committee and deputy general manager of Dongfeng Motor Group Co., Ltd., and Jin Yuzhi, the CEO of Huawei's intelligent automobile business unit, have repeatedly emphasized that with the M817, a new "intelligent off - road driving" segment will be opened up and it will become the best in the world.
Obviously, Mengshi wants to strengthen the brand presentation of "all - wheel intelligent off - road driving" based on its military DNA in brand positioning. However, this formulation has deviated in the end. Many salespeople define the M817 in their sales pitches as more of an urban SUV with Huawei's Qiankun intelligent driving technology.
"The reason is simple. First, the approximately 2,000 individual sales are not enough to secure a place for Mengshi in the off - road segment. Second, users of this vehicle are more interested in Huawei's intelligent driving technology." A sales manager from the North China region told "Caixin". According to their study in the branches, the reason for over 60% of users to buy was the support of Huawei's ADS4.0, and the off - road performance was at most a bonus.
In fact, Mengshi has not spared any expense in equipping the vehicle with off - road capabilities. The M817 is equipped with a front and rear double - wishbone aluminum suspension, a two - motor differential lock, and an intelligent E - lock system. The intelligent driving technology also extends from the city and the highway to off - road scenarios and forms a unified all - wheel driving planning system.
The Huawei HarmonyOS cockpit
In Dongfeng's view, these capabilities are not hype but the fundamental support for the differentiation of the company's technology strategy. Even if many users will not really drive the vehicle through the desert or over bomb craters, the existence of these capabilities still represents the "show of strength" of the brand in the field of intelligent off - road driving.
At the same time, Mengshi is under time pressure to tell its story.
The off - road market is a very special market. Given that traditional mass markets such as sedans and SUVs are full of competitors, many brands and models still choose to enter this special market, including Zhijie and Xiangjie, which are closely associated with Huawei.
According to an informed source, both Chery and BAIC are collaborating with Huawei to launch intelligent new - energy off - road SUVs. In particular, the latter has already built a mature off - road reputation with its BJ series, and the product transformation path is more direct. Once these brands introduce new products in the same price segment, Mengshi's current niche window will quickly close.
"In this situation, Mengshi must quickly create brand appeal and support its luxury positioning with real sales figures." Analysts believe that as the only luxury brand in Dongfeng Motor Group's entire new - energy strategy, Mengshi is regarded as the key point for enhancing brand value. Whether it can firmly establish itself in the luxury market will determine whether Dongfeng Automobile can achieve real brand premiums in the future.
Penetrating into the red ocean of the 300,000 - yuan class: A breakthrough shortcut or a brand mistake?
In the Chinese automotive market, the 300,000 - yuan class is a special segment. It neither belongs to the price range of traditional luxury brands nor can it be regarded as the purchasing budget range of the masses. In other words, user perception in this price segment is both high - end and narrow. By pushing the price of the Dongfeng Mengshi M817 into this range, it has to face the toughest competition and the most demanding users.
Currently, the special market for new - energy rugged SUVs in the 300,000 - yuan class has already gathered a large number of players. In the first seven months of 2025, the total sales volume of the Fangchengbao 8 was 14,186 units; the sales volume of the Tank 500 exceeded 33,163 units, which is equivalent to an average of almost 5,000 units per month, and it already showed signs of weakness compared to the same period in 2024. The sales target of the Mengshi M817 for the next four and a half months is only equivalent to the sales volume of the latter in less than three months and is even lower than the monthly delivery volume of the Wenjie M8.
According to statistics from the China Association of Automobile Manufacturers, in the first seven months of 2025, among new - energy passenger cars, only in the price segment of 300,000 to 400,000 yuan was there a decline in sales compared to the previous year, with the decline in the range of 300,000 to 350,000 yuan being the most obvious, namely 18% compared to the same period in 2024.
In the view of analysts, the real test Mengshi faces is not how strongly it promotes the equipment but the creation of a sense of brand value.
Dongfeng's pricing for the Mengshi M817 is more of a "stop - gap measure" that reflects the brand's strategic retreat after the failure of premiumization.
The latest report "Survey Report on the Existence Situation of Chinese Automobile Dealers in the First Half of 2025" by the China Automobile Dealers Association shows that 52.6% of dealers are in the red and only 30.3% have achieved their sales targets. The already - pressured sales ecosystem has reduced its tolerance for "high investment and low returns" to zero.
Given the suddenly increased survival pressure on automobile dealers, if Mengshi cannot quickly open a gap in the special market and break through a sales bottleneck with the M817, it will not only turn the previous price reduction into a "losing deal" but also push the brand into a dead - end between the luxury and mass markets.
This article is from the WeChat channel “Caixin Auto”, author: Caixin Auto. 36Kr has obtained permission to publish it.