(Yicai) Nov. 24 -- Aito, the electric vehicle brand of Chinese telecom equipment giant Huawei Technologies and carmaker Seres Group, has more than doubled the daily production capacity of its revamped M7 model to 700 units.

The latest version of the Aito M7 sports utility vehicle, launched on Sept. 12, will have an annual output capacity of 200,000, Yicai learned during a recent visit to one of Seres' smart auto plants. 

Huawei and Seres joined hands to launch the Aito brand in 2021, with the Chongqing-based automaker building the M5, M7, and M9 at its three new energy vehicle plants in its home city.

Some 5,000 M7s rolled off the assembly line in September, which doubled to 10,000 last month, a Seres executive told Yicai, adding that the goal is to raise that to between 20,000 and 30,000 a month.

Traditional carmakers need two to three months to hike output capacity, while Seres has to do it in a month, the manager at one of its factories told Yicai. Some key suppliers have set up shop near the Chongqing plant, the person added, noting that the supply chain’s labor force is also being raised to ensure timely deliveries.

Huawei has invested more than CNY1 billion (USD140.9 million) in the supply chain, adding more than 20,000 workers to increase production shifts, Richard Yu, head of the firm’s smart auto solutions business group, said during a visit to Seres' plants last month. The investment mainly enhances the production flow, processes, and results, the factory manager noted. 

Sales of the M7 had been sluggish since the beginning of the year, partly because of the intense price war being waged in China’s electric vehicle market. The figure fell below 1,000 units in April and later recorded a monthly low of 432. 

In response, Aito launched the new, less-expensive version of the M7. Priced at CNY249,800 to CNY329,800 (USD35,206 to USD46,482), which is CNY40,000 (USD5,638) less than the older model, the new M7 adds a range of cutting-edge tech features, including a light detection and ranging system and Huawei's ADS 2.0, which enables high-level assisted driving without relying on high-definition maps.

More than 50,000 orders have been placed for the new M7 since Sept. 12, with 7,000 ordered on Oct. 6 alone, Yu revealed on Weibo last month. Yu hopes Huawei's auto business can be profitable by 2025, noting that there is as yet no loss or profit for the firm. The business can be profitable if Huawei helps the factory reach over one million in sales, he said.

Shenzhen-based Huawei also cooperates with BAIC Group's Arcfox, JAC Motors, and Chery Automobile on vehicles. A mid-sized to large model with Chery Auto will likely be launched on Nov. 28, while a model in collaboration with JAC will debut next year.

Editors: Shi Yi, Martin Kadiev