On Sunday, Huawei announced its plans to establish a new joint company with automaker Changan Auto. The joint venture, which will be up to 40% owned by Changan Auto, will encompass the core technologies and resources of Huawei’s smart car unit, a division that has recently demonstrated robust sales performance with the introduction of several new vehicles.
According to media reports, Chongqing Changan Automobile revealed that the equity ratio and capital contribution details will be subject to negotiations between the two parties. The joint commitment is aimed at supporting the new entity in becoming a frontrunner in automotive intelligent systems and component solutions within the Chinese market.
During a signing ceremony in Shenzhen, Yu Chengdong, Managing Director and Chairman of Huawei’s smart car solutions unit, expressed the company’s dedication to seizing opportunities in the ongoing electrification and intelligent transformation of the auto industry. He emphasised Huawei’s collaborative approach, noting that the smartphone manufacturer aims to work closely with more auto firms to enhance their vehicles.
It’s worth noting that Huawei has consistently clarified that it does not independently manufacture cars but collaborates with automakers to improve vehicle quality. The tech giant already has established partnerships with Changan and Seres Group. The collaboration with Seres Group has resulted in the production of Aito-branded cars, including the popular M7 model.
In a separate venture with Chinese automaker Chery, Huawei has introduced the S7 sedan under a new marque called Luxeed. Positioned as a direct competitor to Tesla’s Model S, Luxeed aims to capture the growing market demand for high-performance electric vehicles.
Highlighting the success of its revamped M7 model, Huawei disclosed in October that it had received over 50,000 orders within the first 25 days of sales. This achievement positions Aito among China’s top five new energy vehicle manufacturers, based on August data.