The first model to be built by and JAC will be a sedan priced at the RMB 1 million level, not an MPV as previously rumored, according to local media.

(Image credit: CnEVPost)

The first model Huawei and Anhui Jianghuai Automobile Group (JAC) will build together is not an MPV (Multi-Purpose Vehicle) as previously rumored, but a sedan, local media outlet Yicai said in a January 31 report.

The sedan, which will be priced in the 1-million-yuan ($140,000) range, will take on the BMW 7 Series and is expected to go on sale in the fourth quarter of this year, the report said.

Construction work on the plant for producing the model, located in Feixi, Anhui province, is currently nearing completion, according to the report.

When the model goes on sale, sales revenue will be counted as part of JAC's revenue, the report noted.

On December 1, JAC announced that it and Huawei had reached an agreement to collaborate on product development, manufacturing, sales, and service based on Huawei's smart car solutions.

The goal of the two is to create luxury smart internet-connected electric vehicles (EVs) and to meet the higher needs and expectations of users, JAC said at the time.

The product development of the partnership models is under the overall responsibility of JAC, and the automaker will create an advanced production base that will utilize its capabilities in the manufacturing field, according to the announcement by JAC in December.

Rumors of a partnership between Huawei and JAC have circulated from time to time over the past year.

In April 2023, a report by local media outlet 36kr said that Huawei and JAC would jointly build models targeting the ultra-high-end luxury pure EV market, with a price range of around RMB 800,000 to RMB 1 million.

On August 1, Ming-Chi Kuo, an analyst at TF International Securities, a well-known source tracking Apple's supply chain, said in an article posted on Medium that Huawei was working with JAC to develop an MPV model priced at nearly RMB 1 million.

The model is expected to be mass-produced in the second quarter of 2024, with a shipment target of about 50,000 units a year after launch, Kuo said at the time.

Yicai's latest report contradicts Kuo's prediction.

MPVs are a niche market in China, with sales only one-tenth of those of sedans or SUVs.

For all of 2023, MPV sales in China were 1.09 million units, according to the China Passenger Car Association (CPCA). By comparison, sedans sold 10.23 million units in 2023, and SUVs 10.4 million.

($1 = RMB 7.1678)

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