The re-launched Luxeed S7 will bring new features and will be able to deliver soon after launch, with monthly sales expected to be at around 5,000 units, according to local media.

(Image credit: Luxeed)

Luxeed, the new electric vehicle (EV) brand jointly created by Huawei and Chery, will reportedly re-launch its first model, the Luxeed S7 sedan, next month, after it was met with complaints over slow deliveries during its initial launch several months ago.

The Luxeed S7 is set to be re-launched on April 8, with the model set to receive more functional upgrades as new production lines come on line, local media outlet 36kr said in a report today.

Richard Yu, head of Huawei's automotive business, officially launched the Luxeed S7 in Shanghai on November 28 last year at a starting price of RMB 249,800 ($34,700), the first sedan in the Chinese tech giant's joint effort with a local carmaker.

In the Chinese auto industry, re-launching a new model shortly after its official launch is rare and means extra marketing spend.

For the Luxeed S7, a re-launch seems reasonable. The model's official launch appeared to be rushed, resulting in extremely slow initial deliveries that sparked many complaints.

On January 25, a LatePost story said that Chery's second plant in Wuhu, Anhui province, which is dedicated to producing the Luxeed S7, was still in pilot production, with fewer than 10 vehicles rolling off the assembly line in a single day.

The Luxeed project has sorted out its production and organizational processes, and the S7 has been shifted to dedicated production lines at the newly built Chery's second super factory, which is designed to have a capacity of around 500,000 vehicles per year, 36kr said in the report today.

Production of the Luxeed S7 is expected to return to normal starting in April, Huawei's Yu said in a presentation at last week's China EV 100 Forum, the report noted.

Chery's EH division, which is dedicated to coordinating its work with Huawei, has sorted out the functions of its various roles and will be looking for a new location outside of Chery's headquarters to further enhance its independence, the report said, citing a person familiar with the matter.

The EH division was created jointly by Chery and Huawei, which co-developed the Luxeed line of products, a Chery job ad shows.

The re-launched Luxeed S7 will bring a lot of new features and will be able to be delivered soon after its launch, with monthly sales expected to be about 5,000 units, the person familiar with the matter said.

Luxeed's second model will be an SUV, which is expected to be released in July or August this year, and will be available in extended-range electric vehicle (EREV) versions, according to 36kr.

The Luxeed S7 sedan is based on a purely electric platform and was too late for EREV variants, a regret that will be remedied with the SUV, the report said.

Because of the development and validation process involved, the EREV versions of the Luxeed SUV are expected to be launched by the end of the year, according to the report.

The Luxeed S7 targets the RMB 250,000 to RMB 350,000 market, while the planned EREV versions of the SUV is aimed at boosting sales, the report noted.

($1 = RMB 7.1977)

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