On April 1, Aito’s new M7 lineup experienced price reductions. According to information listed on the Harmony Intelligent Mobility Alliance (HIMA) app, the starting price of the new five-seater version of the Aito M7 Plus, featuring real-wheel drive, has dropped from RMB 249,800 (USD 34,500) to RMB 229,800 (USD 31,740), a decrease of RMB 20,000 (USD 2,760). Meanwhile, the Aito M7 Max, equipped with smart driving features and rear-wheel drive, has been repriced to RMB 279,800 (USD 38,650) from the initial RMB 289,800 (USD 40,300). Customers must pay a deposit before April 30 to avail these discounts.
Alongside adjustments in certain model prices, there were alterations in the benefits offered. A HIMA salesperson told 36Kr that previously, customers enjoyed a RMB 3,000 (USD 410) subsidy and a complimentary RMB 15,000 (USD 2,070) package. However, with the current price reduction of RMB 20,000 for the Plus version, customers now have to purchase this package separately, effectively translating to only a RMB 5,000 (USD 690) discount.
The price changes for some of the new Aito M7 models may be related to the launch of Xiaomi’s first car model, the SU7. Xiaomi, after announcing its foray into the automotive industry three years ago, unveiled its first all-electric sedan, the SU7, on March 28, with a starting price of RMB 215,900 (USD 29,800). Within 24 hours of its launch, Xiaomi received 88,898 pre-orders, surpassing its annual sales target within a day.
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This record-breaking sales figure prompted some car manufacturers to take defensive measures. Chery introduced a RMB 10 billion (USD 1.3 billion) subsidy plan for trade-ins, temporarily offering full exemption from purchasing taxes for designated models, with old models eligible for a maximum deduction of RMB 30,000 (USD 4,140) and the chance to win nearly RMB 50,000 (USD 6,900) in car purchase vouchers. Meanwhile, Nio launched a RMB 1 billion (USD 138 million) subsidy for gasoline car replacements on April 1, offering a RMB 10,000 (USD 1,380) subsidy for customers purchasing its latest car model.
Despite the SU7 attracting significant market attention, HIMA sales representatives in Shanghai, Qingdao, and elsewhere told 36Kr that there has been little change in foot traffic in their stores. The sales pillar for HIMA remains its Aito series models. According to data released by Aito on April 1, its total delivery volume for March reached 31,727 units, with 24,598 units of the new Aito M7 and 6,243 units of the Aito M9. Compared to February, the total delivery volume increased by 50.1%, with the new Aito M7 growing by 33.1% month-on-month.
However, for Richard Yu (also known as Yu Chengdong), who is the executive director of Huawei, CEO of Huawei’s consumer business group, and chairman of the company’s business unit for intelligent automotive solutions, this sales volume is still far from enough. According to 36Kr, Yu expressed privately to his internal circle that the Aito M9’s production capacity is still steadily increasing, and he hopes that over 15,000 units of the M9 can be delivered in April.
As the delivery volume of the new Aito M7 continues to rise, its inventory orders are gradually diminishing. Data released by Aito showed that as of February this year, the cumulative orders for the M7 have exceeded 140,000, while the cumulative delivery volume has now exceeded 120,000.
With competitors increasingly adopting fierce tactics, maintaining stable sales for Aito is a new challenge facing Huawei.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This article was written by Tian Zhe for 36Kr.