The number of such stores is expected to reach 800 in 2024 and 1,000 in 2025, according to local media.

(Image credit: CnEVPost)

Huawei is building dedicated stores for models joining its Zhixuan business, with the number of such stores expected to reach around 800 in 2024, a report from local media outlet 36kr said today.

That means the Chinese tech giant will take a year to get the Zhixuan business to a store count comparable to that of Li Auto (NASDAQ: LI), the report said, adding that Li Auto's stores are also expected to exceed 800 next year.

By 2025, the number of stores for Huawei's Zhixuan business is expected to reach 1,000, the report said.

Huawei works with car companies in three ways, with the model of building cars with OEMs being the one it is most involved in, which is known as Zhixuan.

In Huawei's least involved model, the tech giant only provides components and the HarmonyOS system. In the middle of the spectrum is the model that offers "Huawei Inside" solutions.

The first automaker to partner with Huawei in the Zhixuan model is Chongqing-based Seres, and the two jointly created the Aito brand and launched the Aito M5 and Aito M7.

In addition to Seres, Huawei also created the Luxeed brand with Chery, and on November 28 the new brand's first model, the Luxeed S7, was officially launched.

On December 1, Anhui Jianghuai Automobile Group (JAC) signed an agreement with Huawei to jointly build electric vehicles (EVs).

At the end of last month, Huawei unveiled the Harmony Intelligent Mobility Alliance (HIMA, Hongmeng Intelligent Mobility), which it describes as an upgraded version of its Zhixuan business.

Future Huawei Zhixuan models can only be sold in HIMA stores, and there are currently four HIMA stores in Shanghai, according to 36kr.

Selling multiple brands of models at the same time is one of the reasons why Huawei is accelerating the construction of dedicated stores, 36kr's report noted.

In addition to Huawei's models with Seres and Chery, HIMA's models will include the upcoming Aito M9, which will go on sale in December, as well as new models that Huawei will partner with JAC and Changan, the report said.

This is a considerable challenge in terms of store space, after-sales as well as delivery capacity, the report said.

HIMA is looking for franchisees for user centers in 78 cities, which are divided into four classes -- S, A, B and C. The S class has an area of about 8,000 square meters and more than 12 spaces for show cars, the report said.

The smallest user center, the C class, has an area of 2,500-4,000 square meters and six show car spaces, according to the report.

Regulatory filing: Huawei-backed Aito to offer EREV and BEV versions of luxury SUV M9