China’s tech giant, Huawei, announced on Sunday its plans to transfer core technologies and resources from its smart car unit to a new joint venture, with up to 40% ownership by the automaker Changan Auto.
This strategic move comes as the smart car unit has seen robust sales for several new vehicle models.
The newly established joint company will focus on research and development, production, sales, and service of intelligent automotive systems and component solutions, as outlined in Huawei’s press release.
Their objective is to collaborate with partners to drive innovation and leadership in smart car technology, ultimately contributing to the growth and prosperity of the automotive industry.
The exact equity ratio and capital contributions will be subject to negotiations between the two parties, as stated in a filing by Chongqing Changan Automobile with the Shenzhen Stock Exchange.
Both Huawei and Changan Auto are committed to supporting the target company in becoming an industry leader in automotive intelligent systems and component solutions within China.
During a signing ceremony held in Shenzhen, Huawei’s managing director and chairman of the smart car solutions unit, Yu Chengdong, emphasized the company’s intention to work closely with more automotive firms to capitalize on the opportunities presented by the electrification and intelligent transformation of the auto industry.
It’s worth noting that Huawei has consistently clarified that it does not manufacture cars independently but rather collaborates with automakers to enhance their vehicle offerings.
Huawei has already established partnerships with Changan and other companies, including Seres Group, with whom they jointly produce Aito branded cars, including the popular M7 model.
In another significant move, Huawei, in conjunction with Chinese automaker Chery, has developed the S7 sedan under the new Luxeed marque, positioning it as a competitor to Tesla’s Model S.
Notably, Huawei’s revamped M7 model received over 50,000 orders within the first 25 days of its sales launch in October.
This achievement positions Aito as one of China’s top five new energy vehicle manufacturers based on August data, reaffirming Huawei’s growing presence in the smart car industry.