Yu Chengdong will reduce his burden and not reduce his responsibilities.

Recently, Huawei's official website has updated Yu Chengdong's personal introduction information. He is currently the executive director of Huawei and the chairman of terminal BG. He no longer includes the "Chairman of Smart Car Solutions BU", but only appears in his "previous" resume. At the same time, his personal Weibo and Douyin certification information also deleted the description of the relevant positions simultaneously.

Regarding this adjustment, there are many "multi-degree interpretations" on social media, which are roughly divided into two categories: some believe that Huawei's move is to suppress Yu Chengdong, demote him to marginalize him, and prevent him from talking nonsense; there is another category that is even more outrageous. If something happened to Xiaomi SU7, Huawei will blame it for exaggerating the concept of "intelligent driving".

No matter which one it is, it is a conspiracy theory. The reason is very simple: In addition to the normal industrial and commercial change needs, Yu Chengdong's resignation also means that Huawei has implemented the "car manufacturing" model and its route in the automobile business has become clearer.

There are two meanings here: the first is the promise of "Huawei does not build cars, helping car companies build good cars and sell good cars" which will continue to be strengthened and resolutely implemented in the next few years. Another layer is that Huawei's automobile business has entered the "double-horse" model. Yu Chengdong is not ignoring the automobile business, but is focusing more on Huawei terminals and Hongmeng Intelligent Travel.

The former is related to the change of Huawei's vehicle BU main body, that is, Shenzhen Yinwang Intelligent Technology Co., Ltd. (hereinafter referred to as "Shenzhen Yinwang") has completed the industrial and commercial changes, and the vehicle BU business has been independently operated through Shenzhen Yinwang.

Tianyan Check information shows that the legal representative of Shenzhen Yinwang was changed to Xu Zhijun. Huawei's shareholding in Shenzhen Yanwang has been adjusted from 100% to 80%, with two new shareholders, Avita Technology (Chongqing) Co., Ltd. and Cialis Automobile Co., Ltd., with a shareholding ratio of 10% respectively.

In terms of Shenzhen’s management, the board of directors elected Xu Zhijun as chairman, and Yu Chengdong and Zhu Huarong as vice chairman. Bai Yi, Jin Yuzhi, Bian Honglin and Zhang Xinghai serve as directors. Among them, Zhu Huarong is the chairman of Changan Automobile and Avita Technology, while Zhang Xinghai is the chairman of Cialis.

Currently, Xu Zhijun's position on Huawei's official website is the position of the company's vice chairman and rotating chairman, and no information related to the forecast is displayed. This means that the main body of the car BU is no longer "under Huawei".

After this industrial and commercial change, it means that Huawei's main body has officially been installed in the Insight Company, and Car BU has shifted from an internal R&D department to a market-oriented solution supplier, expanding the scope of technical output through open cooperation.

The establishment of Shenzhen Yinwang is an exterior of the strategy of "Huawei's not making cars". Huawei hopes to package the technology and resources of the smart car solution BU (hereinafter referred to as "Car BU") and become a technology open platform with diversified equity.

To understand simply, Huawei hopes that the car BU will transform from a single technical solution supplier to a "demand + supply" integrated community, and it is also an "open platform for the joint participation of the automobile industry" that is expected to be positioned, opening up technology and capabilities to the entire industry to share.

It should be added that since the first proposed the "no car manufacturing" strategy in 2019, Huawei has strengthened this position through many public statements, such as the 2024 acquisition of the Injie trademark incident of Sellis. Its goal is to help car companies build and sell good cars, rather than directly participating in vehicle manufacturing.

Ping An Securities Research Report believes that Huawei Car BU is expected to become the "Bosch" in the smart car era after its independent operation. When Huawei Car BU business reaches its mature state, its revenue scale will be between 127.5 billion yuan and 165 billion yuan. Assuming that the net profit margin is 15%, the corresponding annual net profit is between 19.1 billion yuan and 24.8 billion yuan.

Hongmeng Intelligent Walk is a smart car technology ecological alliance led by Huawei. It aims to empower car companies through ICT technology, promote intelligent upgrades of automobiles, and provide smart travel solutions. Its core strategy is to "focus on terminal business, not build cars but deeply participate in automotive intelligence.

At present, Hongmeng Intelligent Behavior Partners provide four major solutions for intelligent driving, smart cockpit, intelligent driving control, and software-defined automobiles, creating a unique automotive ecological application scenario with high "Chinese content".

Previously, Huawei developed its automobile business through three models: the first is the component supply model, that is, supplying parts to car companies; the second is the Hi model, that is, cooperating with car companies, Huawei provides full-stack intelligent car solutions such as smart cockpits, intelligent driving, and smart car cloud; the third is the Hongmeng Smart Travel Model (formerly known as "Smart Selection Cars"). Under this model, Huawei and car companies have in-depth research and development, sales, and promotion of cars, and Huawei has a deep participation.

These three major models belong to different business departments, among which the parts supply model and Hi model belong to Huawei car BU, while Hongmeng Zhixing belongs to Huawei terminal BG, which is the various terminal consumers-oriented departments such as Huawei mobile phones, computers, tablets, headphones, etc. that consumers are familiar with.

After Shenzhen Yinwang completed the industrial and commercial changes, Yu Chengdong's position was also adjusted, and his division of labor with Xu Zhijun became clearer, and Hongmeng Zhixing and Yinwang also began to assume different missions. Correspondingly, Huawei's car manufacturing route is also clearly defined as a "double-driver" pattern: both flagship products are used to build the market and open ecological expansion.

Ren Zhengfei once interpreted Huawei's decision-making mechanism: from "one person is a team" to "making decisions by those who can hear the sound of cannons."

In fact, in the past year, Yu Chengdong's position has changed many times. From the CEO of Che BU to Chairman, and the CEO of Terminal BG to Chairman, every adjustment is to "reduce burdens and not reduce responsibilities". In the words of a former Huawei veteran, Yu Chengdong is a person who does things and "has done something really."

This is reflected in Huawei's financial report, which is solid figure. For example, within one and a half years when Yu Chengdong served as the chairman of Che BU, Hongmeng Zhixing experienced a huge sales explosion. In 2024, Hongmeng Zhixing delivered a total of 445,000 new cars, ranking first in the average transaction price of Chinese auto brands.

Driven by this, Huawei's auto business revenue in 2024 was 26.353 billion yuan, a year-on-year increase of 474.4%, making it the most significant business segment in Huawei's annual report. According to Meng Wanzhou, Huawei's smart car solutions have achieved profitability for the first time that year. This is one year earlier than what Yu Chengdong promised before. Previously, at a Huawei internal meeting, Yu Chengdong said that Car BU will achieve profitability in 2025.

For Yu Chengdong, the task of "sieging cities and land" he will undertake in the future will not be reduced. But he also needs to get an inspiration from the Xiaomi SU7 explosion incident. Entrepreneur IP or entrepreneurs who become internet celebrities have a double-edged sword: they can help marketing and sell more products, and will also be backfired and stepped to the bottom.

When the public disenchants the "personal economy" and traffic fades, only product safety and awe of life can verify the "conscience" of the company. This is also what Yu Chengdong said, "Safety is the greatest luxury, and all the costs are worth it!"