(CTN News) – Huawei announced on Sunday its plans to transfer essential technologies and assets from its smart car division, which has achieved impressive sales figures for various new vehicles, to a newly established joint venture.
This joint venture will be co-owned by automaker Changan Auto, with Huawei retaining up to 40% ownership.
According to a press release by Huawei, the newly formed company will focus on conducting research and development, manufacturing, sales, and service of intelligent automotive systems and component solutions.
The primary objective of this collaboration is to foster innovation and establish a leading position in smart car technology. Additionally, the joint venture aims to contribute to the growth and progress of the automotive industry.
In a filing with the Shenzhen Stock Exchange on Sunday, Chongqing Changan Automobile stated that the equity ratio and capital contribution will be subject to negotiation between the two parties involved.
The filing also mentioned that both parties will collaborate to support the target company in becoming a leading player in the automotive intelligent systems and component solutions sector in China.
During a signing ceremony in Shenzhen, Huawei’s managing director and chairman of the smart car solutions unit, Yu Chengdong, expressed that the smartphone manufacturer intends to partner with additional automobile companies to capitalize on the opportunities presented by the electrification and intelligent transformation of the automotive industry, as stated in the press release.
Huawei has clarified that it does not manufacture cars independently, but rather collaborates with other automakers to enhance the quality of their vehicles. The company has established partnerships with various companies, including Changan and Seres Group.
Together with Seres, Huawei produces Aito-branded cars, such as the M7 model. Additionally, Huawei has worked with Chery to create the S7 sedan under the new Luxeed brand, which is positioned 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, placing Aito among China’s top five new energy vehicle manufacturers based on August data.