- Shangjie aims to sell 20,000 units of the H5 SUV per month and has released a procurement plan for 400,000 units annually based on its future model roadmap.
- Next year, the Shangjie brand will launch two new models, one a sedan and the other an SUV.
Shangjie, the new automotive brand jointly developed by Huawei and SAIC Motor (SHA: 600104), has reportedly set an ambitious sales target for its first model, the H5 SUV (sport utility vehicle), and plans to launch additional models next year.
The brand aims to sell 20,000 units of the H5 monthly and has released a procurement plan for 400,000 units annually to its supply chain based on future model planning, according to a report by local media outlet 36kr yesterday.
Shangjie began pre-sales of the H5 SUV yesterday, with a starting price range of RMB 169,800 ($23,730) to RMB 209,800, making it the most affordable model under Huawei's HIMA (Harmony Intelligent Mobility Alliance) business.
The official launch of the model is scheduled for September 23, and it will be equipped with Huawei's ADS 4 advanced driving assistance system upon launch, making it the most affordable model with this system.
Shortly after the pre-sales began, Shangjie announced on Weibo that the H5 received over 25,000 pre-orders within the first hour.
The pre-order data has given Shangjie internal confidence in achieving the H5 sales target, according to the report by 36kr.
Next year, the Shangjie brand will launch two new models, one a sedan and the other an SUV, with the SUV set to debut in the first half of the year, the report said.
To ensure the delivery of Shangjie models, SAIC and Huawei have made thorough preparations in terms of production capacity and distribution channels.
In terms of production capacity, SAIC has built a dedicated factory for Shangjie in Lingang, Shanghai, and has also taken over part of the production lines at SAIC-GM's factory in Jinqiao, Shanghai, according to the report.
In terms of channels, Shangjie will not only be sold at HIMA's user centers but will also enter the dedicated user centers created by SAIC and Huawei for it, the report stated.
Currently, Shangjie is recruiting dealers to expand its channel layout.
The brand said on August 14 that it has received applications from over 1,500 dealers, including 4S stores switching from luxury brands such as Porsche, Volvo, and Lotus.
($1 = RMB 7.1564)
