Huawei, Changan Established Joint Venture On Electrification Platform

China's Huawei recently announced that it will transfer key technologies and resources from its smart car division, which has recorded strong sales for several new cars, to a new joint venture that Changan Auto, an automaker, will own up to 40% of.

According to a press release from Huawei, the new business will work on the creation, manufacturing, marketing, and servicing of intelligent automotive systems and component solutions.

"The new company will ... work with partners to promote innovation and leadership in smart car technology and promote the prosperity and development of the automotive industry," the release said.

In a filing with the Shenzhen Stock Exchange on Sunday, Chongqing Changan Automobile stated that the parties will negotiate the equity ratio and amount of capital contributed.
"The two parties will jointly support the target company to become an industry leader in automotive intelligent systems and component solutions based in China," the filing said.

Huawei has consistently stated that it only assists other automakers in producing higher-quality cars; it does not produce cars itself.

It currently collaborates with Changan and a number of other businesses, such as Seres Group. Aito-branded automobiles, such as the M7 model, are jointly produced by Huawei and Seres.

In addition, Huawei and Chinese automaker Chery collaborated to build the S7 sedan, which Luxeed will market as a rival to Tesla's Model S.

In October, Huawei announced that, in the first 25 days of sales, it had received over 50,000 orders for its redesigned M7 model. Based on August data, this would place Aito among China's top five manufacturers of new energy vehicles.