Two Chinese automakers whose smart EV partnerships with Huawei have made them financial market darlings reported heavy losses in the first quarter of 2021, reflecting the industry’s longstanding financial challenges.
BAIC BluePark New Energy Technology’s net loss rose to 898 million yuan ($ 139 million) in the first quarter, from 477 million yuan a year ago, according to its latest earnings report.
Last month, Arcfox, a brand owned by a subsidiary of BluePark, announced that it had started taking pre-orders for the Polar Fox Alpha S, the first commercial passenger car equipped with Huawei’s autonomous driving technology and its Harmony operating system.
BluePark is the main subsidiary of Beijing New Energy Automobile Co. Ltd., once the leading manufacturer of electric cars in China. It sold more pure electric vehicles than any other company in each of the seven years until 2019, when sales first fell – from 158,000 to 151,000 – after the generous grants that had supported the company. public were reduced.
But that was then. In 2020, a treasure trove of new private automakers ate the state giant’s lunch, and sales fell 82.79% to 25,900 vehicles. It only moved 3,149 in the first quarter of 2021.
Also on the radar is Chongqing Sokon Industry Group Co. Ltd., which last month started selling its Seres SF5 extended range electric vehicles equipped with Huawei’s intelligent cockpit system through Huawei’s national flagship stores. The Seres SF5 is manufactured by the new energy vehicle subsidiary of Sokon.
In the first three months of the year, Sokon lost 575 million yuan, compared to 462 million yuan in the same period last year, according to its latest earnings report. The company, which also manufactures gasoline-powered cars, said it sold 1,433 new-energy vehicles in the first quarter, without giving figures for the comparable period.
Related: The first car equipped with the Huawei self-driving system goes on sale