Huawei Technologies Co on Thursday unveiled the upgraded versions of its Luxeed S7 electric sedan in partnership with Chery Auto, as the Chinese tech company aims to expand its presence in the burgeoning but increasingly crowded new energy vehicle market in the country.

Available at a starting price of about 250,000 yuan ($35,000) in China, the Luxeed S7 will compete directly with Xiaomi's SU7 sedans, which have gone viral online after its release late last month.

Yu Chengdong, head of Huawei's smart vehicle business unit, said the company is expanding collaboration with partners in the Chinese automotive industry to usher in a new era of smart electric vehicles, leading the comprehensive transformation of intelligent automobiles.

Yu said the S7 has received a major upgrade in intelligent safety with the inclusion of Huawei's vision intelligent driving solution, which enhances the driving experience on highways and in urban areas, and simplifies intelligent parking.

"Huawei's intelligent driving service is available now, not in the future," Yu said.

Its advanced intelligent driving system, which Huawei calls "navigation-based connected autonomous driving for urban areas", has received a full-scale upgrade, with immediate delivery upon purchase.

The function covers over 40,000 urban and rural areas nationwide, offering seamless driving experiences wherever there are roads, and improving with every mile driven.

With industry-leading parking capabilities, it enables intelligent parking scenarios such as valet parking, remote parking and maneuvering in narrow and mechanical parking spaces, Huawei added.

Chery said it has established an independent business unit for its cooperation with Huawei, backed by dedicated manufacturing facilities and resources.

Huawei's technology and standards empower intelligent manufacturing processes, ensuring that each S7 undergoes nearly 10,000 quality inspections before leaving the factory.

During the conference, Yu said the company had started the mass delivery of S7. One S7 rolls off the production line every minute.

The launch of S7 comes after Huawei's SUV Aito series, developed in collaboration with Chinese carmaker Seres, was widely accepted by consumers.

Yu said Aito M7, which has been on the market for seven months, has accumulated over 174,000 orders, and Aito M9, launched three months ago, has accumulated over 70,000 preorders, with a monthly delivery capacity reaching 25,000 units.

The S7 marks Huawei's commitment to innovation in the smart automobile sector and its determination to overcome challenges in the supply chain, aiming to meet the growing demand for intelligent vehicles in the market, experts said.

Ouyang Minggao, an academician at the Chinese Academy of Sciences, said "With the popularity of urban navigation assisted-driving functions and the optimization and expansion of technologies such as fast charging, the market share of new energy vehicles in China is expected to continue its rapid growth before 2026."

By the end of 2024, the market share of new energy vehicles is likely to increase by 5 to 10 percentage points, reaching 36 to 41 percent, he added.

Lei Jun, chairman and CEO of Xiaomi, said over the next decade, the intelligent functions of EVs will be the key to win competitions.

Production and sale of new-energy vehicles in China maintained rapid momentum in the first quarter. NEV output surged 28.2 percent year-on-year to nearly 2.12 million units and NEV sales climbed 31.8 percent year-on-year to 2.09 million units, data from the China Association of Automobile Manufacturers showed on Wednesday.