Shangjie, the new automotive brand jointly developed by Huawei and SAIC Motor (SHA: 600104), will launch two upcoming models that are both SUVs (sport utility vehicles), local media outlet Leiphone reported today.
The report noted that Shangjie's vehicles will not be built on the dedicated platform developed by SAIC and Huawei until the third model.
The report said that due to development cycle constraints, Shangjie's first two models --including the inaugural H5 SUV -- cannot transition to the new platform in time.
By the time the third model enters development, the vehicle development platform jointly created by Huawei and SAIC will be ready, according to the report.
Shangjie officially launched the H5 SUV on September 23 with a starting price of RMB 159,800 ($22,470), positioning it as the most affordable model under Huawei's HIMA (Harmony Intelligent Mobility Alliance) business.
The Leiphone report said that the initial three SUV models represent a conservative choice for achieving substantial sales volume.
From January to September this year, China's SUV sales reached 8.43 million units, up 10.4 percent year-on-year, accounting for 49.56 percent of total passenger vehicle sales, according to data from the China Passenger Car Association (CPCA).
During the same period, sedan sales totaled 7.8 million units, rising 8.5 percent year-on-year, representing 45.86 percent of total passenger vehicle sales.
According to a separate August 26 report by domestic media outlet 36kr, Shangjie aimed for monthly sales of 20,000 units for the H5 model, and based on its future vehicle roadmap, the company had communicated an annual production target of 400,000 units to its supply chain.
Shangjie planned to launch two new models in 2026: a sedan and an SUV. The SUV is scheduled for release in the first half of the year, the 36kr report said.
To ensure Shangjie's delivery capacity, SAIC and Huawei had made comprehensive preparations in both production and distribution channels.
Regarding 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 Jinqiao plant in Shanghai, according to the 36kr report.
Shangjie is the fifth automotive brand under the HIMA umbrella, joining Seres Group's Aito, Chery's (HKG: 9973) Luxeed, BAIC Group's Stelato, and Anhui Jianghuai Automobile Group's (JAC) Maextro.
Both SAIC and Huawei held high expectations for the Shangjie H5. SAIC President Jia Jianxu said in April that the initial investment for Shangjie amounts to RMB 6 billion, utilizing SAIC's most mature production lines.
($1 = RMB 7.1117)
