Huawei has made a significant entry into the automotive sector by establishing a new company in collaboration with Chinese automaker Changan Auto.
This strategic partnership, solidified through a signed investment on November 26, marks a pivotal moment in the intelligent car industry and underscores Huawei’s commitment to expanding its business horizons.
The newly formed company, as of now unnamed, stands as a joint venture with ownership divided between Huawei and Changan. Changan Auto secures a 40% stake in the venture, with Huawei and prospective shareholders collectively holding the remaining shares.
While some details remain undisclosed, both parties are expected to engage in further discussions to shape the future of this innovative collaboration.
Huawei has announced the primary focus of this venture, which will center on research and development, production, sales, and services dedicated to smart automotive systems and component solutions for intelligent vehicles.
In a move to consolidate core technologies and resources, Huawei aims to position itself as a driving force in the smart car solution business.
Changan, on the other hand, commits to investing in the support of operational aspects and future advancements of this pioneering venture.
Zhu Huarong, Chairman and Party Secretary of Changan Auto expressed, “Changan Auto and Huawei will leverage their respective advantageous resources and work with strategic partner car companies to achieve in-depth collaboration to accelerate the large-scale commercialization of smart technology.”
Huawei’s Managing Director and Chairman of the Smart Car Solutions Business Unit commented on the collaboration, stating, “We have deepened our cooperation with Changan and will work with more strategic partner car companies to continue to explore new open and win-win situations. This partnership will aid in the electrification and intelligent transformation of the automotive industry.”
Huawei first embarked on its journey into the automotive industry alongside Chinese car manufacturer SERES, resulting in the establishment of a collaborative brand named AITO.
Since then, AITO has successfully launched several electric vehicles, with the AITO M7 experiencing rapid sales among consumers.
To add to the anticipation, Huawei is set to unveil a new LUXEED S7 sedan on November 28, a product of joint development with automaker Chery.
