Huawei-JAC Zunjie V800 brake pedal failures trigger 10% share slump
Brake pedal brackets on three Huawei-JAC Zunjie V800 electric vehicles snapped during emergency braking tests, causing JAC Motors shares to plunge 10.01% and wiping out HK$7.26 billion in market value. The automaker says it is monitoring the situation, while Huawei has not commented.
Shares of JAC Motors plunged by the 10.01 per cent daily limit on Thursday after brake pedal brackets on three units of its ultra-luxury Zunjie V800 electric vehicle snapped during safety tests, wiping out 6.2 billion yuan (HK$7.26 billion) in market capitalisation.
The quality scare emerged after mainland automotive platform Dongchedi conducted real-world emergency braking tests on three brand-new Zunjie V800 vehicles, a model jointly developed by Huawei's Harmony Intelligent Mobility Alliance and JAC Motors. In every instance, the brake pedal brackets reportedly snapped, with the locations and patterns of the fractures being remarkably similar across all three vehicles.
Following the viral test results, shares of JAC Motors closed down 10.01 per cent at 24.72 yuan. The company responded to mainland media that they are monitoring the situation, while Huawei has yet to issue a response.
Prior to the incident, JAC Motors' stock had surged by over 42 per cent between September 11 and 30, making the sharp reversal particularly notable for investors.
The Zunjie V800 is positioned as an ultra-luxury model within Huawei's Harmony Intelligent Mobility Alliance, which partners with various automakers to produce vehicles featuring Huawei's technology. The brake failure raises questions about quality control in the rapidly expanding smart electric vehicle segment.
Analysts note that the incident could affect consumer confidence in the brand, although no official recall or safety advisory has been announced as of the time of reporting. JAC Motors' response suggests the company is taking the matter seriously, but the lack of a detailed explanation may prolong market uncertainty.