Summary of Key Points
The launch of the new Avita 07L sends an important signal: The partnership with Huawei is no longer a "must-have" component. Although Avita continues to utilize Huawei's state-of-the-art intelligent driving technology, it aims to position Huawei as a public technology platform, while highlighting its own strengths through differentiated capabilities such as design and brand positioning. Facing market pressures and the IPO process, Avita hopes that the 07L will help it regain monthly sales of tens of thousands of units, paving the way for its listing.
Detailed Analysis
1. The Relaxation of the Partnership: From "Deep Integration" to "Optional Component"
Previously, Avita has always emphasized its long-standing and close relationship with Huawei, describing itself as an "exclusive partner." However, with more and more car companies (such as WM Motor and ARCFOX) collaborating with Huawei, Avita risked becoming indistinguishable from other brands if it relied solely on Huawei. Vice President Yong Jun stated that cooperation is no longer a necessity, suggesting that Avita has the flexibility to choose from various technology providers based on its own needs. The goal is to shed the label of being "a subsidiary of Huawei" and demonstrate its own capabilities to the market.
2. The Confidence in Differentiation: Supported by Both Equity and Technology
Avita asserts its ability to differentiate itself through two key factors:
- Equity Advantage: As the second-largest shareholder in Yiwang Company (Huawei's intelligent driving-related enterprise), Avita has priority access to Huawei's advanced Qiankun intelligent driving technology, ensuring it remains among the leaders in this field.
- Design Autonomy: Although Huawei contributed to the exterior, interior design, and color options of the 07L, Avita had its own input on the details (for example, a five-seater layout that better suits family users), allowing it to create a unique product distinct from other Huawei-cooperated models. In short, "we use Huawei's best technology, but we want our brand to have its own identity."
3. The New Avita 07L: A Lifeline Before the IPO
The automotive market has been sluggish this year, and Avita's monthly sales have not exceeded ten thousand units, which is a concern for its IPO process. President Chen Zhuo confidently states that the 07L is designed to attract family customers with its spacious interior and comprehensive features, aiming to boost sales and lay a solid foundation for the company's listing.
4. The Expectations for Huawei: From "Customized Services" to a "Public Platform"
Avita hopes that Huawei will evolve into a "public technology platform," providing standardized services that all car companies can utilize. This would enable Avita to combine its own design and configuration choices with advanced technology, fostering uniqueness. If Huawei provides only customized solutions for Avita, it may exhaust its resources and limit Avita's ability to stand out in the market. Yong Jun believes that the more Huawei becomes a public resource, the more Avita can highlight its brand strength—after all, only those who can innovate using Huawei's technology will emerge as winners.
5. Industry Trends: Car Companies Don't Want to Be "Huawei's Factories"
Many car companies are collaborating with Huawei, but no one wants to rely solely on them for success. If all cars use Huawei's technology, consumers will struggle to distinguish between brands, and car companies may end up playing the role of "factories" that merely produce products on behalf of others. Avita's approach reflects a broader industry trend: when collaborating with tech companies, car companies must leverage their advanced technologies while maintaining their own brand identities to remain competitive.
By breaking down these points in this way, non-experts can understand Avita's strategic changes, the significance of the new 07L, and the underlying industry dynamics.