Two of China’s legacy automakers have posted bleak profit forecasts for 2025 but are responding the same way: by doubling down on deeper technical ties with Huawei and underwriting heavy product investment. BAIC BluePark and Anhui Jianghuai (JAC) together expect at least ¥60 billion in net losses for 2025, yet have announced joint commitments to pour more than ¥113 billion into new vehicle programmes and platforms tied to Huawei’s HarmonyOS-driven ecosystem.
BAIC BluePark said it expects a 2025 net loss attributable to shareholders of between ¥43.5 billion and ¥46.5 billion, an improvement from a roughly ¥69.5 billion loss in 2024 but still a heavy red ink. The company blamed continued upfront spending on product development and channel expansion for the “strategic investment”–stage deficit, and says sales growth has yet to translate into full scale benefits.
JAC forecast a smaller but still material 2025 loss of roughly ¥16.8 billion. Management attributed the shortfall partly to weak export markets and a roughly ¥10.8 billion investment loss tied to its joint venture with Volkswagen in Anhui. JAC’s loss is nonetheless shrinking slightly versus the prior period, evidence of a slow stabilisation rather than a turnaround.
Both firms are members of Huawei’s HarmonyOS (Hongmeng) smart-drive alliance and are now moving to convert platform access into product pipelines. BAIC BluePark plans to invest more than ¥55 billion in upgrading three models under its Huawei-collaborative “Xiangjie/享界” brand, with two sedans already on sale and a B+‑segment SUV in testing. JAC has filed to raise up to ¥35 billion through a targeted share issuance, earmarking the proceeds for a ¥58.75 billion high-end intelligent electric platform that will underpin forthcoming “Zunjie/尊界” models.
The moves are partly shaped by a counterexample in the same ecosystem. Seres (合作品牌问界) — another OEM that went deep with Huawei’s stack — reported blockbuster results in 2025’s first three quarters: about ¥110.5 billion in revenue and ¥5.3 billion in net profit. That performance has become the template both BAIC BluePark and JAC are trying to emulate: partner with Huawei for sophisticated software and user experience, then scale premium models quickly to reverse losses.
Huawei’s role in the industry has shifted fast: rather than building cars, it supplies a stack of software, connectivity and driver-assistance systems that many OEMs find faster and cheaper than in‑house development. Huawei executives and partners are publicly forecasting an explosion of Huawei‑powered models — the company says dozens of new models will carry parts of its “Qian Kun/乾崑” and other solution suites next year — but that success brings its own problem: as more manufacturers adopt the same core, differentiation and pricing leverage for individual OEMs may shrink.
The commercial calculus is thus tricky. Heavy, early-stage R&D and product spending can produce scale benefits later, but it requires execution on quality, supply‑chain cost control and brand positioning. For BAIC BluePark and JAC, embracing Huawei reduces some technology risk but substitutes it with dependence on a supplier whose success will be shared across many rivals. If Huawei’s platform becomes commoditised, the very edge these automakers are buying could be eroded.
What to watch next are product launches and margin trajectories: whether the upgraded Xiangjie models and JAC’s high‑end platform translate into sustainable volume and pricing power, whether their channel investments improve conversion, and how Huawei calibrates pricing and technical roadmaps as its ecosystem widens. In China’s cutthroat EV market, binding to a dominant tech supplier can be a shortcut to survival — but it is not a guaranteed route to profitability.