Recently, a communication summary about BAIC Blue Valley was exposed. The minutes show that the first product of "Xiangjie", a collaboration between BAIC Blue Valley and Huawei, will be unveiled at the Beijing Auto Show in June. The car is positioned as an administrative sedan with an internal price range of 300000 to 500000 yuan. The subsequent model planning of Xiangjie includes but is not limited to leisure sedans, SUVs, and other products.

In mid February of this year, BAIC Blue Valley responded to investors' questions on the investor interaction platform by stating that the "Xiang Jie" created in cooperation with Huawei in the intelligent selection mode is about to be launched, with the first product being an intelligent sedan aimed at the high-end market. BAIC Blue Valley stated that it is currently accelerating the "Xiang Jie" project and plans to establish a distribution and service network in the Asian and European markets by 2024, pushing this high-end sedan to overseas markets.

The above communication minutes also show that BAIC Blue Valley Intelligent Selection has an annual production capacity plan of 300000 vehicles, and it is expected that the monthly sales of the first product of Xiangjie will exceed 10000 vehicles. Regarding the information in the minutes, BAIC Blue Valley told reporters, "There will be new car models released by BAIC Blue Valley in the near future, and specific information will be subject to the announcement."

"Xiangjie" is a product created under the intelligent car selection mode. In addition to BAIC Blue Valley, Huawei's partners under the intelligent car selection mode also include Celes, Chery, and JAC Motors. Last April, Huawei Executive Director and Terminal BG CEO Yu Chengdong announced that the cooperation model between Huawei and BAIC would be upgraded from Huawei Inside (HI mode) to Smart Selection mode. On August 14th last year, BAIC Blue Valley officially announced its smart selection cooperation with Huawei. To meet the design and production needs of new vehicle models, BAIC Blue Valley has comprehensively upgraded the existing BE22 platform and created a new generation of high-end pure electric intelligent connected vehicle platform.

In the intelligent selection mode, the brand that Huawei collaborates with Celes is Wenjie, and the products launched in cooperation with Chery are the Zhijie series. At present, AITO (Wenjie) Automobile and Zhijie Automobile have become members of Huawei Hongmeng Zhixing. Hongmeng Zhixing is the Hongmeng Intelligent Automotive Technology Ecological Alliance, aiming to work with partners to promote the development of automotive intelligent technology, create excellent intelligent automotive products for users, provide the ultimate intelligent travel experience, and bring the digital world into every car.

The above communication minutes also show that Huawei Smart Selection wants to create an e-commerce service platform similar to JD, and will later charge channel fees to the host factory. Currently, Huawei Smart Selection has differences in product selection, so the brand needs to be identified first and selected by Party A. However, from the perspective of diluting the development costs of host factory models, a platform needs to make sedans, SUVs, MPVs, etc., so that the costs can be spread thinly. BAIC and Huawei have also designed SUVs and sedans for business and leisure, as well as MPVs. "However, when selecting a car, Huawei will first make it a sedan, and then make other models."

Zhao Yi, Secretary of the Board of Directors of BAIC Blue Valley, previously told reporters that the pricing of the brand cooperating with Huawei Smart Selection will be higher than that of the Jihu brand. There is not much intersection between the product line and the products currently launched by Jihu, and there will be price differentiation. Huawei will be responsible for sales channels. "In the future, the business cooperation between the two sides will continue to deepen, and a series of products will be jointly created based on the Smart Selection model," Zhao Yi said, Huawei has two abilities that its partners highly value, one is the ability to define products, and the other is the strength of its sales capabilities.

The cooperation between Huawei and BAIC Blue Valley has a long history, with the previous cooperation model being the HI model. In July 2022, the high-end brand Jihu under BAIC New Energy and Huawei collaborated to deliver the all-new Alpha S HI version. However, the market response to this product was less than expected. Last May, the model was renamed as the Alpha S Pioneer Edition, with a new model priced at 329800 yuan, a decrease of about 100000 yuan from the previous price.

Data shows that in 2023, BAIC Blue Valley sold a total of 92000 new cars, a year-on-year increase of 84%. Among them, Jihu sold only 30000 new cars in 2023. On the evening of January 15th, BAIC Blue Valley (600733. SH) released a performance forecast loss announcement. It is expected to have a net loss of RMB 5.7 billion to RMB 5.2 billion in 2023, compared to a net loss of RMB 5.465 billion in the same period last year; It is expected to incur a net loss of 6.2-5.7 billion yuan after deducting non recurring expenses, compared to a net loss of 5.838 billion yuan in the same period last year.

According to the plan, Huawei Zhixuan Car will launch more products this year, in addition to the high-end sedans launched by Huawei and BAIC New Energy. In the second half of this year, both the Wenjie M8 and Zhijie's first SUV models will be launched into the market. In 2025, the models that Huawei collaborates with JAC are also expected to be released, entering the million yuan sedan and MPV markets.