Huawei’s answer to the Tesla Model Y is coming

Huawei is coming after the Tesla Model Y with its second EV model under the Luxeed brand in a partnership with Chinese automaker Chery, featuring its advanced driver assistance system (ADAS), a longer driving range, and a roomier interior, all at a similar price.

The entry-level Luxeed R7 travels 667 kilometers (415 miles) on a single charge, powered by an 82 kilowatt-hour (kWh) battery pack from Chinese supplier CALB at a price tag of RMB 259,800 ($37,022), which is RMB 9,900 more than Tesla’s Model Y. It drives autonomously on Chinese expressways using the basic version of Huawei’s Advanced Driving System (ADS) without a lidar unit for remote sensing.

The higher-end versions of the compact crossover have a maximum driving range of 802 km and can navigate Chinese urban roads, for a cost of between RMB 299,800 and RMB 339,800. Customers pay RMB 10,000 on top to access the more premium Huawei ADS 3.0 software. By comparison, Tesla sells the top-end Model Y at a sticker price of RMB 348,000 and is looking to roll out its so-called “Full Self-Driving” software in the country in the first quarter of 2025, TechNode reported.

The five-seater vehicle is said to have more head and leg room than the Model Y and a boot capacity of 837 liters which rises to 2,130 liters with the rear seats folded. Still, it faces strong competition not only from the US automaker but also from local rivals, including NIO’s sub-brand Onvo and Geely-controlled Zeekr which launched similar offerings for less money last week.

Huawei and Chery delivered only 18,091 units of the Luxeed S7 sedan from January to August, compared with more than 254,045 Aito-branded EVs sold by Huawei and partner Seres. Tesla shipped 354,693 Model Y vehicles from its Shanghai Gigafactory over the same period, according to figures released by the China Passenger Car Association, and sales of the world’s top-selling EV model totaled 1.22 million units last year, said market research firm JATO Dynamics.