Huawei and Avita signed a new agreement again, adding cooperation in product development and marketing.

On December 12, Avita signed a comprehensive and deepened strategic cooperation agreement with Huawei. According to the agreement, the two sides will deeply cooperate in product development, marketing, and ecological services, and support the creation of Avita's next-generation products.

The upgraded cooperation model this time is similar to the cooperation model reached between GAC and Huawei on November 30, and it is a new cooperation model launched by Huawei for automotive enterprises.

When Huawei first entered the automotive field, Ren Zhengfei put forward the slogan "Huawei does not build cars, but only uses ICT technology to help automotive enterprises build good cars". Based on this principle, Huawei has launched three cooperation models: component model, HI model, and intelligent selection model.

In the component model, Huawei is similar to the role of traditional automotive suppliers, only delivering automotive components to automotive enterprises.

The intelligent selection model is a more in-depth cooperation model. The four brands, AITO (cooperated with Seres), Xiangjie (cooperated with BAIC), Zhijie (cooperated with Chery), and Zunjie (cooperated with JAC), are the cooperation results under the intelligent selection model.

Under the intelligent selection model, Huawei will deeply participate in multiple links such as product definition, styling design, marketing, and user experience, and jointly create the entire vehicle product with automotive enterprises. After the new vehicle is launched, it will also follow up and adjust in a timely manner according to the market situation.

The HI model is between the above two. Automotive enterprises will only apply the automotive technology solutions from Huawei, mainly including intelligent driving, intelligent cockpit, electric drive technology, etc.

As early as 2022, Avita started the HI model cooperation with Huawei. Under the HI model cooperation, Avita launched four models: 11, 12, 07, and the upcoming 06.

These four models are equipped with Huawei's intelligent driving, intelligent cockpit, intelligent networking, intelligent electric, and intelligent vehicle cloud service solutions, but the product definition, marketing, manufacturing, and other parts are led by Avita.

After this cooperation upgrade, the cooperation boundary between Avita and Huawei will be broadened. In addition to the intelligent automotive platform, Huawei will also empower Avita's new products in multiple fields such as product development, marketing, and ecological services.

After the independence of Huawei's Automotive Business Unit, it naturally also hopes to empower partners by broadening the business boundary and introducing more capabilities of Huawei.

The upgraded version of the HI model signed by Huawei with GAC and Avita one after another in this industry is called HI plus, or "quasi-intelligent selection". The main difference between HI plus and the "intelligent vehicle selection model" is that it does not enter the sales channels of Huawei terminals.

The sales ability of Huawei terminal channels has achieved outstanding results through Hongmeng Zhixing, which is mainly based on the "intelligent selection" model. In the first 11 months of 2024, the total sales of brands under Hongmeng Zhixing have reached 395,000 units.

Among them, the AITO M7 has achieved a sales volume of 185,600 units, firmly ranking first in the sales ranking of new energy vehicle models in 2024. The AITO M9 has achieved a sales volume of 141,100 units, winning the sales champion of models above 500,000 yuan.

The sales volume has proved Huawei's capabilities in product definition, marketing, and ecological services, which directly promotes the deepening of cooperation between other automotive enterprises and Huawei.

From the sales data, under the original HI model, Avita's monthly sales performance has been continuously rising.

At the beginning of the year, Avita's monthly sales volume was less than 2,000 units. After the launch of the Avita 12 and 07 new vehicles, in November this year, Avita's total sales volume exceeded the 10,000 mark.

If the HI plus model is implemented, the cooperation will obviously be more in-depth, and Avita's sales performance will also have more chips.

It is reported that after the new cooperation is reached, Avita will build a series of new models based on Huawei's new architecture, with the help of Huawei's various capabilities in products, marketing, and ecology.

Entering the new cooperation model, Avita will have more weights to face more fierce market competition. The further support of Huawei's capabilities also makes Avita expected to make further progress in both sales and brand.

The following are the Q&A between Avita and Huawei on this cooperation, slightly edited without changing the original meaning:

Q1: Compared with the HI model, what is the difference in the cooperation model of this signing?

The two teams will deeply cooperate, based on the concept of software-defined vehicles, to create a series of new models based on a new architecture and leading technology. Huawei will deeply participate in the development of the intelligent field and ecological operations, as well as the marketing-related work of the vehicle models, to jointly bring users a leading intelligent experience and achieve Avita's sales volume growth and brand improvement.

Q2: What is the difference between Avita's model and the intelligent vehicle selection (Hongmeng Zhixing) model?

As an incremental component supplier for intelligent connected vehicles, both models are cross-border between the automotive industry and the ICT industry, and are comprehensive cooperations based on intelligent vehicle solutions.

Q3: Not long ago, Huawei signed a cooperation agreement with GAC and proposed the concept of a new deep cooperation model. Is the cooperation model between Huawei and GAC the same as the cooperation model between Huawei and Avita?

On November 30, Huawei and GAC signed a strategic cooperation agreement for intelligent vehicles. GAC Group will create a new high-end intelligent vehicle brand, and with the new brand as the carrier, it will deeply cooperate with Huawei to give full play to their respective advantages. The specific details are being advanced.

In the traditional automotive era, the relationship between vehicle enterprises and component suppliers is a buyer-seller relationship. In the era of software-defined vehicles, intelligent vehicles create value through software. Automotive enterprises and component suppliers are strategic partners, sharing risks and benefits. In the entire life cycle of users' vehicle use, value is created by continuously bringing improvements and enhancements to the user experience.

We have created a new cooperation model between automotive enterprises and component suppliers, actively exploring new methods and paths in the constantly changing industry environment.

Q4: Avita signed this cooperation agreement with Huawei. What expectations does Avita have for this?

The two sides have formulated the goal of helping Avita "four vehicles in four years" in the first five-year plan, and it has been initially completed. In the future, the two teams will deeply cooperate, based on the concept of software-defined vehicles, to create a series of new models based on a new architecture and leading technology, to achieve Avita's sales volume growth and brand improvement.