Is aion adding another new brand?

On August 13, GAC Group announced that it had reviewed and approved the "Proposal on GAC AION's Investment in Huawang Auto," agreeing for its subsidiary, GAC AION, to increase its investment in Huawang Auto by 600 million yuan. After completing this capital increase, GAC Group will directly hold 71.43% of Huawang Auto's shares and indirectly hold 28.57% through GAC AION. This means Huawang Auto is a subsidiary controlled by GAC Group.

HuaWang Auto is the main entity of the high-end new energy vehicle project jointly developed by GAC and Huawei, targeting the market above 300,000 yuan.

The information disclosed in this announcement suggests that the GAC Aion brand lineup may gain a new member.

How is Huawang Auto progressing?

Huawang Auto initially launched as the "GH Project," and progress has been quite rapid.

In November 2024, GAC Group and Huawei signed a cooperation agreement, agreeing to collaborate in areas such as product development, market strategy, and ecosystem services. They will develop intelligent vehicle models based on a new architecture. The brand is positioned to compete directly with high-end brands like Tesla, NIO, and Li Auto, focusing on the 300,000 RMB market segment.

Two months later, in January 2025, GAC Group announced its intention to invest in the establishment of the GH project company, with a registered capital of 1.5 billion yuan. The aim is to jointly launch a new brand with Huawei, targeting the luxury intelligent new energy market.

A month later, the two parties launched the "GAC AI Platform and Application Pilot Project," introducing AI capabilities in areas such as intelligent network development, product design, and enterprise operations to reduce costs, improve efficiency, and accelerate project implementation.

In March, Huawang Automotive Technology (Guangzhou) Co., Ltd. was officially registered with its headquarters located in Guangzhou, Guangdong. The legal representative is He Xianqing, the deputy general manager of GAC Group, who also serves as the chairman of GAC Toyota, GAC Trumpchi, and GAC Aion.

According to GAC Group, Huawang Auto will comprehensively advance in brand building, channel expansion, and product development. The brand construction work has been fully launched, with plans to officially release a new brand name by the end of 2025, and the first model is expected to be officially launched by the end of 2026.

Some industry insiders predict that Huawei Automotive's first model is expected to integrate Huawei's advanced technologies, such as assisted driving and intelligent cockpit solutions, while being equipped with GAC’s independently developed powertrain and electric drive systems, thus forming a deep technological and market collaboration between the two parties.

In terms of sales channels, Huawang Auto recently launched a nationwide city recruitment plan, with the first phase prioritizing the recruitment of 40 cities, including key markets such as Beijing, Shanghai, Shenzhen, Chengdu, Chongqing, and Wuhan. The channel model adopts a "1+N" layout (user center + experience center) and adheres to the principle of fewer partners and more stores, aiming to cover high-end user groups with more intensive touchpoints.

Image source: GAC Aion

According to the latest announcement from GAC Group, Huawang Auto may become another high-end brand under Aion. The reason GAC Group is allocating project resources of Huawang Auto to Aion is based on the latter's leading position in the group's new energy business.

As the pioneer of GAC Group’s comprehensive electrification transformation, Aion not only possesses experience in pure electric platforms, three-electric (battery, motor, and electronic control) technologies, and intelligent research and development, but also has a mature supply chain and manufacturing system. Placing the new brand under the Aion system helps leverage its existing R&D, manufacturing, and marketing capabilities, shortens the incubation period for the new brand, and reduces costs through technological sharing.

In addition, in GAC Group's three-year "Panyu Action" plan, Aion is expected to play a significant role. GAC Group plans to achieve a sales proportion of over 60% from its own brands by 2027, challenging a scale of 2 million units, with Aion potentially playing a key role in this endeavor.

A tool for Aion's upward surge?

Hua Wang Auto may be the tool for Aion to achieve a sales breakthrough and surge again.

Aion currently has two major brands: the main brand Aion and the high-end brand Hyper. Aion focuses on the mid-to-low-end pure electric market within 200,000 yuan, relying on main models such as AION Y, AION S, and AION UT to maintain sales scale in the mainstream market. However, this part of the market is highly price competitive, with significant pressure on profit margins, and the Aion brand image is more associated with being "affordable" and "ride-hailing."

Sales of the Aion brand in the first half of 2025

Due to the increasingly competitive market for new energy vehicles in the 150,000 RMB price range, Aion has faced significant challenges in the past two years. According to the Gasgoo Auto Industry Database, in the first half of 2025, Aion's cumulative sales exceeded 100,000 units, a 16.5% decline compared to the same period last year and more than halved from its peak sales figures.

The Haobo brand is positioned as AION's path to penetrate the high-end market. The first model, Hyper SSR, is priced at over a million yuan, but serves more as a symbol of brand image. The truly mass-produced models, such as Hyper GT and Hyper HT, are mainly priced in the 200,000 to 300,000 yuan range. In the first half of this year, Haobo's cumulative sales were only slightly over 6,000 units, failing to make a significant breakthrough in the mid-to-high-end market.

Sales of Haobo from January to June 2025

Some industry insiders believe that the reason Haobo is facing resistance after its peak is due to its high association with Aion in terms of channels and brand image. The "King of Ride-hailing Cars" label creates a psychological barrier for some consumers. Additionally, its product positioning and design still have room for improvement and have not formed a differentiated advantage. In the increasingly competitive 200,000 to 300,000 yuan segment, the presence of models from Xiaomi, Wenjie, Ideal, and others further compresses the market space.

To better develop Haobo, its marketing system was separated from Aion. Earlier this year, GAC Group adjusted its organizational structure, integrating the marketing sectors of Trumpchi and Aion, and established three major brand marketing divisions: Trumpchi, Aion, and Haobo. In March, GAC Group Chairman Feng Xingya emphasized that in the next three years, there will be no upper limit on support for the development of the Haobo brand, and the group's top human, material, and financial resources will be invested in Haobo.

Hua Wang Auto's integration into AION is more beneficial for AION's advancement into the 300,000+ market. Currently, Huawei has established a strong market presence in areas such as assisted driving, intelligent cockpits, and vehicle-cloud services. The sales performance of the AITO series, in particular, validates the market potential of its technological empowerment.

If GAC Group operates Huawang Automobile under the Aion system, on one hand, it can leverage Aion's R&D and manufacturing resources to quickly advance product launch; on the other hand, it can penetrate the high-end market at the 300,000 yuan level through the dual endorsement of "Huawei + GAC" at the brand level, creating differentiation from existing brands.

The Aion brand matrix may also form a three-tier structure: Aion targets the mid to low-end mass market, Haobo caters to the mid-to-high-end models in the 200,000 to 300,000 yuan range, and Huawang Auto aims for the high-end market above 300,000 yuan. This multi-brand layout helps in creating a more segmented coverage of price and consumer demographics in the new energy market, enhancing overall competitiveness.