Huawei’s existing partnerships, including those with Changan and Seres Group, have yielded successful ventures.
A joint venture between Huawei and automaker Changan Auto has been announced, marking a calculated move to strengthen Huawei’s position in the quickly changing automotive sector. This collaboration aims to centralize core technologies and resources from Huawei’s smart car unit, a division that has already showcased impressive sales for several new vehicle models.
The newly-formed company, in which Changan Auto will hold up to 40% ownership, will be dedicated to research and development, production, sales, and service of intelligent automotive systems and component solutions, according to Huawei’s press release. The joint venture intends to actively engage with partners to foster innovation and leadership in smart car technology, contributing to the overall prosperity and development of the automotive sector.
Details of the equity ratio and capital contributions will be negotiated between the two entities, as outlined in a filing by Chongqing Changan Automobile with the Shenzhen Stock Exchange. The filing emphasizes the joint commitment to supporting the new company in becoming a prominent industry leader in automotive intelligent systems and components within China.
During a signing ceremony in Shenzhen, Yu Chengdong, Huawei’s Managing Director and Chairman of the smart car solutions unit, expressed the company’s commitment to collaborating with additional automotive firms. He highlighted Huawei’s role in assisting other automakers in enhancing their vehicles and underscored their dedication to seizing opportunities in the electrification and intelligent transformation of the auto industry.
Huawei’s existing partnerships, including those with Changan and Seres Group, have yielded successful ventures. The collaboration with Seres Group has resulted in the production of Aito-branded cars, including the popular M7 model. Additionally, Huawei has partnered with Chinese automaker Chery to produce the S7 sedan under the Luxeed marquee, positioning it as a competitor to Tesla’s Model S.
In October, Huawei reported receiving over 50,000 orders for its revamped M7 model within the first 25 days of sales, a significant milestone that positions Aito among China’s top five new energy vehicle manufacturers based on August data. As Huawei continues to play a pivotal role in shaping the future of smart car technology, the joint venture with Changan Auto signals a strategic move to further solidify its presence in the dynamic automotive landscape.