Author: Guanchejun

Major Breakthrough for Luxeed!

On October 16, the Ministry of Industry and Information Technology (MIIT) unveiled the List of Road Motor Vehicle Production Enterprises and Products (Batch 412), revealing that Anhui Luxeed New Energy Automobile Co., Ltd. has been shortlisted for approval as a “new vehicle manufacturing enterprise.”

On October 17, an insider at Luxeed confirmed to a Yicai reporter that, upon completion of the public announcement period and receipt of approval, Luxeed will secure independent vehicle manufacturing qualifications. The source emphasized, “Chery's factory will provide full support to Luxeed.” The same individual also confirmed Luxeed's plans for an independent listing in the future.

Upon hearing this news, Guanchejun's immediate reaction was: Chery has finally granted its 'prodigy' official recognition.

01

Let's rewind to 2023, when the Luxeed S7 made its grand debut. At that time, Luxeed was essentially a collaborative venture spearheaded by Chery, with Huawei contributing the intelligent cockpit, intelligent driving technologies, and channel sales. The vehicle's manufacturing qualifications were held by Chery, and both the brand and manufacturing operations were firmly entrenched within Chery's ecosystem.

In January 2025, Anhui Luxeed New Energy Company was officially registered with a staggering capital of 1 billion yuan. By August of the same year, Chery and Huawei had inked the Luxeed 2.0 strategic agreement, setting ambitious targets: a 10 billion yuan investment in R&D, a 5,000-strong R&D team, and the establishment of an independent entity encompassing research, production, sales, and services, with dual design centers in Shanghai and Shenzhen. This marked Luxeed's transition from a business division to a standalone legal entity.

At the time, many dismissed this as mere corporate rhetoric. However, the recent transfer of manufacturing qualifications by the MIIT has laid bare Chery's true intentions: to position Luxeed as a 'strategic special zone' within the group, endowed with independent assets, production capacity, and a dedicated team, paving the way for a separate capital market debut.

Compared to other brands under the Harmony Intelligent Mobility Alliance, if this public announcement proceeds without a hitch, Luxeed will be the first to secure independent vehicle manufacturing qualifications.

Once the qualification transfer is finalized, new vehicles will proudly display the 'Luxeed' tail badge, truly establishing it as an independently valued entity in the capital market. Without this crucial step, the dream of an independent listing would remain just that—a dream.

A closer look at personnel changes further reinforces this strategic alignment.

In January 2026, Zhao Changjiang, former General Manager of BYD's Tengshi Sales Division, announced his joining of Luxeed as Executive Director and Executive Vice President. By April, Guo Rui, former CMO of Huawei Consumer Business Group's Greater China region and Global CMO of Honor, had been appointed Chairman and CEO of Luxeed, succeeding Yu Jiufeng.

Mid-year, Chery transferred 15% of Luxeed's equity from its 100% ownership to two Wuhu partnership firms, ultimately allocating it to three key individuals: Guo Rui, Zhao Changjiang, and Zhu Xiaodong. While Guo Rui and Zhao Changjiang have already been introduced, Zhu Xiaodong is a pivotal R&D figure within Chery.

The message from this arrangement is crystal clear: Chery is willing to offer substantial equity stakes to bind top talent to Luxeed's cause.

Here, it's important to note that even after achieving independence, Luxeed remains a member enterprise of the Chery Group. It is an independently operating vehicle entity incubated by Chery, with Huawei serving as its strategic partner for core technologies.

02

However, securing a license and selling cars are two vastly different endeavors, with the latter proving far more challenging.

According to Chery's disclosures on the Hong Kong Stock Exchange, in September 2026, Luxeed sold 5,008 units, marking a year-on-year decrease of 36.5%. From January to September, cumulative sales reached 43,623 units, a year-on-year decrease of 24.5%.

It's worth noting that at the end of 2024, when Luxeed first launched, monthly sales exceeded 17,000 units.

However, by 2026, Luxeed's sales had continued to slump. According to Chery's disclosures, sales were 4,506 units in January, 945 units in February, 2,579 units in March, 2,346 units in April, 3,428 units in May, and 5,541 units in June. The first half of the year was dismal.

The second half saw slight improvement, with 10,709 units in July and 8,561 units in August, suggesting a recovery. However, September sales fell back to just over 5,000 units. Clearly, Luxeed's current sales performance remains highly volatile.

In Guanchejun's view, by 2026, the Chinese new energy vehicle market has evolved far beyond the stage where mere qualifications, Huawei's involvement, or a compelling narrative could guarantee success.

Today, whether a brand deserves independent valuation hinges not on its legal identity but on its ability to generate independent profits.

Luxeed's ambition is commendable, but its ultimate success will hinge on its ability to deliver on vehicle delivery, product quality, and profitability.

The charts in this article, unless otherwise cited, are sourced from publicly disclosed information from various channels. We hereby acknowledge and express our gratitude. The views expressed herein are for reference only and do not constitute investment advice.

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