Huawei’s EV brand Aito hits sales jackpot with new SUV, will compensate buyers for delivery delays in sizzling market

Chinese buyers ordered 60,000 M7s in a month, underlining the strong demand for domestic EVs in the sizzling market long dominated by Tesla
The company, jointly launched by Huawei and carmaker Seres in late 2021, will pay buyers 200 yuan (US$27.35) for each day of delay, up to 10,000 yuan

Electric & new energy vehicles

Daniel Renin Shanghai

Published: 8:32pm, 17 Oct 2023

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Aito, the Chinese electric vehicle (EV) maker backed by telecommunications equipment maker Huawei Technologies, is offering compensation to buyers of its M7 sport-utility vehicle (SUV) after the revamped model hit the bullseye with consumers, resulting in delivery delays.

The EV brand, jointly launched by Huawei and carmaker Seres in late 2021, said on Tuesday that every buyer will be awarded 200 yuan (US$27.35) for each day of delay, up to a maximum of 10,000 yuan.

“We have stepped up production [of M7 vehicles],” Aito said in a statement on its app. “We will try our best to hand the vehicles to you with quality ensured.”

The strong demand for the new model – Aito has received more than 60,000 orders in the month since the M7 hit the market – ratchets up the pressure on US-based Tesla, which has long led the sizzling mainland EV market, and its Chinese rivals such as Li Auto, Xpeng and Nio. Beijing-headquartered Li Auto recently broke its monthly sales record for the sixth straight time this year, and Chinese EV makers overall appear to be on track to smash a 2023 sales target of 8.5 million electric cars.

The M7 uses an infotainment system driven by Huawei’s HarmonyOS. Photo: Simon Song

For Aito buyers who ordered an M7 on or before October 16, the current waiting time is four weeks for the Plus version and six weeks for the Max version, Aito said.

At present, Aito is able to produce about 10,000 vehicles a month, and it will have to add shifts to execute all the orders quickly, according to Phate Zhang, founder of Shanghai-based EV data provider CnEVPost.

“The compensation for a potentially prolonged delivery was a pleasant surprise to Aito because it had not been prepared for strong sales of the new M7,” said Tian Maowei, a sales manager at Yiyou Auto Service in Shanghai. “But in this cutthroat market, if a company is not able to deliver new cars promptly, it will soon lose its market share because customers are lured away by other brands.”

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The premium EV builders are likely to offer discounts soon to attract new customers as they strive to maintain their market share, Tian said.

The revamped M7 starts at 249,800 yuan, lower than the previous model launched in July 2022 by 40,000 yuan, or 13.8 per cent. The SUV’s driving range is 1,300 kilometres.

The new model comes with Huawei’s HarmonyOS operating system, allowing its infotainment system to provide “the same smooth experience” as the company’s blockbuster Mate 60 Pro smartphone, Richard Yu Chengdong, head of Huawei’s car unit, said during a launch event on September 12.

Aito is due to launch a brand new model, a full-size luxury electric SUV called the M9, in December, Yu announced during another event on September 25.

US-sanctioned Huawei has made inroads into EVs after unveiling its Huawei HI intelligent automotive solution in April 2021. The system comprises a computing system, 4D imaging radar, an autonomous driving platform and intelligent thermal management.

Luxeed, a marque developed by Huawei and state-owned Chery Automobile, will launch its first production model, the S7, in November, Yu said at the September 25 event. The coupe-like EV will be based on Chery’s E0X platform, which has been designed for two-motor all-wheel-drive EVs, according to information published in August on the website of China’s Ministry of Industry and Information Technology.