Despite facing a shortage of semiconductors and production complications, Huawei and Chery Auto’s joint venture, the Luxeed S7 electric sedan, has commenced mass deliveries, according to a statement by a Huawei executive on Saturday. Richard Yu, the managing director and chairman of Huawei’s smart car solutions, announced on Weibo that a substantial number of Luxeed S7 vehicles have already left the production line and are en route for delivery to customers.
Reports from local media earlier this month indicated that Huawei anticipated resolving the delivery issues of the premium electric vehicle by April. Chery had previously raised concerns with Huawei regarding production delays attributable to a computing unit supplied by the tech company, as reported by Reuters in January.
The S7 sedan, marking the debut model for Chery’s Luxeed EV brand, had garnered approximately 20,000 orders as of November 28th, with a starting price of 249,800 yuan ($34,600).
Huawei’s revenue experienced its most rapid growth in four years during 2023, buoyed by a resurgence in its consumer segment and revenue from emerging ventures such as smart car components, further accelerating its recovery from U.S. sanctions.
In the preceding year, Huawei announced plans to establish the smart car unit as a separate entity. Yu indicated this month that the unit is expected to achieve profitability from April onwards, following substantial losses incurred in the previous year, as reported by local media.