Production Constraints At The Chery Factory, Huawei Luxury Sedan Faces Shipping Challenges

The less encouraging news came from Luxeed, the brand of luxury electric vehicle from the collaboration between Huawei and Chery. Luxeed S7 reportedly faces a shipping challenge for its first model, the S7.

As reported by CNevpost, Friday, January 26, based on a report from local media LatePost, Factory Chery 2 in Wuhu, Anhui province, appointed to produce Luxeed S7, is still in the pilot production stage. Only less than 10 vehicles are successfully produced every day.

The new plant is still experiencing several obstacles in the pilot production stage, including problems related to staff equipment and recruitment.

"If conditions like this continue, it can be concluded that the plant will need a few more months to prepare for mass production," the report said.

This condition could worsen the delivery schedule, given the sales team was previously committed to delivering vehicles in a short time, with an estimated 10--12 week delivery. Complaints related to delivery delays have surfaced on social media.

On January 15, Luxeed provided information via the Weibo website that the factory is operating at full capacity to produce the S7 model. The company also promised to provide a subsidy of 10,000 yuan or around Rp. 23 million to customers if delivery is delayed.

"Given the experience of other car brands, this long waiting time could affect consumer purchase decisions," the LatePost report notes.

For additional information, Richard Yu, head of Huawei's automotive business, launched Luxeed S7, the first sedan of the Chinese tech giant to be built with local automakers, at the November 28 launch event in Shanghai.

Luxeed S7 itself is a medium to large electric sedan available in four variants, with prices ranging from 249,000 yuan (around Rp555 million). According to Huawei and Chery's plan, Luxeed S7 will be produced at Chery's new 2 Factory, with plans for an annual capacity of 500,000 units.