SAIC Motor and Huawei Forge New Path in Auto Industry with Shangjie Brand
A Strategic Collaboration
In a significant development for China’s automotive market, SAIC Motor has officially finalized its collaboration model with Huawei, introducing a new brand called Shangjie (尚杰). This partnership adopts Huawei’s innovative “Smart Selection” strategy, aimed at appealing to the modern consumer while enhancing technological integration in车辆设计 and production.
New Brand on the Horizon
Shangjie will join an elite lineup of brands under the Harmony Intelligent Mobility Alliance (HIMA), which includes Maextro, Stelato, Aito, and Luxeed. However, unlike its counterparts targeting the premium segment with price ranges from RMB 230,000 (approximately USD 32,200) to RMB 1 million (around USD 140,000), Shangjie is set to focus on a younger demographic. Sources indicate that prices for Shangjie models will begin at RMB 170,000–180,000 (USD 23,800–25,200), with upper-tier versions projected around RMB 250,000 (USD 35,000).
Target Demographic and Pricing Strategy
While Shangjie aims for younger consumers, it won’t position itself in the budget category. Instead, the brand promises to maintain a mid-to-high price range while incorporating Huawei’s smart technologies. The first Shangjie model is expected to be based on an existing vehicle from Rising Auto, SAIC’s electric vehicle sub-brand. Notably, the external aesthetic will largely remain intact, with enhancements primarily stemming from Huawei’s advanced electronic systems and intelligent technologies.
Rapid Development Timeline
With a projected launch scheduled for the fourth quarter of 2025, the collaboration is moving at a swift pace. Sources reveal that Huawei’s Smart Selection team is fully integrated within SAIC’s operations, bolstered by over 100 dedicated employees on the SAIC side focused exclusively on this project.
Addressing Competitive Pressures
As competition in the automotive sector intensifies, Jia Jianxu, the newly appointed president of SAIC, emphasizes the critical need for transformation. Underlining the mounting sales pressures, he remarked that the company must “learn to survive on its knees before it can stand again.”
Competitive Benchmarking: BYD’s Ascendancy
In 2024, BYD surpassed all competitors to become China’s bestselling automaker, delivering an impressive 4.27 million vehicles. In contrast, SAIC reported 4.013 million wholesale sales, reflecting a notable 20.07% year-on-year decline. SAIC’s self-owned brands accounted for 2.408 million units, representing 60% of total sales, showcasing strong performances amongst its diverse range including IM Motors, Roewe, and Wuling.
Joint Ventures and Performance Insights
Delving into SAIC’s joint ventures, SAIC Volkswagen sold approximately 1.2 million units, encompassing 150,000 new energy vehicles. However, SAIC-GM’s sales plummeted nearly 50% year-on-year, totaling 673,000 units. This dynamic underscores SAIC’s challenges, especially as traditional fuel-based vehicle sales decline amid the rising demand for new energy vehicles.
The Smart Driving Revolution
Huawei continues to establish its footprint in the automotive sector, with its Aito brand achieving notable success by selling 440,000 vehicles in 2024, thanks largely to adoption of smart vehicle features. The competitive landscape is further enriched by companies like Xpeng, whose models such as Mona M03 and P7+ have emerged as top-sellers, driven by both competitive pricing and advanced smart driving capabilities.
Investment in Autonomous Driving Innovation
For years, SAIC has heavily invested in smart driving technologies. Since 2021, it has become the largest institutional investor in Momenta, a notable player in autonomous driving solutions. This partnership has led to breakthroughs such as urban car pilot functions and AI-driven navigation. However, the commercial dissemination of these technologies remains limited, primarily seen in the IM Motors models, which have yet to gain significant market traction.
Challenges in Product Development
Despite SAIC’s extensive supply chain and technological investments, it struggles to present a groundbreaking product. However, Huawei’s expertise may provide the necessary spark. The impressive sales figures of Huawei’s Aito M7 and M9 serve as benchmarks, offering insights into customer preferences for spacious, tech-savvy vehicles paired with premium features.
Leveraging Agility in Product Strategy
One remarkable aspect of Huawei’s strategy is its agile approach to product iteration. Following the launches of models like Stelato S9 and Aito M9, Huawei promptly introduced advanced “Ultra” versions, showcasing features such as laser radar and smart driving systems. This foresight and flexibility are areas where traditional automakers, including SAIC, have struggled to keep pace.
SAIC’s Restructuring for Efficiency
In early 2025, SAIC initiated a significant restructuring effort following leadership changes in July 2024. The realignment included merging various divisions—Roewe, Rising Auto, and others—into a singular passenger vehicle division. This restructuring is aimed at fostering a concentrated focus on strategic decision-making and operational efficiency.
New Management Paradigms
To maintain pace with industry demands, SAIC is altering its management structure, introducing a performance-based promotion system for executive roles. This shift is intended to ensure that SAIC can match Huawei’s product development speed and innovation momentum.
Competing Against BYD’s Innovative Offerings
As competition in the automotive market heats up, BYD is reshaping consumer standards. Notably, they announced that all their vehicles would include high-level smart driving features at no additional cost. This move directly enhances their attractiveness to consumers while putting pressure on SAIC and its new Shangjie model.
The Road Ahead for Shangjie
With Shangjie anticipated to debut in a year’s time, SAIC faces immense pressure to differentiate itself in the RMB 150,000–250,000 (USD 21,000–35,000) price bracket. Success will depend on technological innovation, product appeal, and strong branding, particularly in a landscape increasingly dominated by competitors who leverage cutting-edge smart technology.
Conclusion: Navigating the Future of Mobility
As the automotive landscape evolves, SAIC Motor’s strategic partnership with Huawei heralds a new chapter aimed at capturing the interests of younger consumers and positioning itself favorably amidst fierce competition. The introduction of Shangjie could prove to be pivotal, yet its success will hinge on the effective integration of smart technologies and the agility to respond to shifting consumer expectations in a rapidly changing industry.
