Huawei And Changan Auto Establish Joint Venture To Accelerate Smart Car Tech Development

In a recent development, Huawei and automaker Changan Auto, announced a joint venture aimed at advancing smart car technology, according to a statement released on Sunday.

What Happened: A Reuters report revealed that Huawei would reallocate its smart car unit’s core technologies and resources to this new venture. Changan Auto could potentially own up to a 40% stake in the company. The primary focus of this joint venture will be the research, production, and sales of intelligent automotive systems and component solutions.

According to Huawei, the newly established entity will join forces with other partners to drive innovation in smart car technology and contribute to the thriving automotive industry. The equity ratio and capital contributions are still under discussion by the two parties, as noted by Chongqing Changan Automobile in a Shenzhen Stock Exchange filing.

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Huawei’s Managing Director and Chairman of the smart car solutions unit, Yu Chengdong, stated at the signing ceremony that their goal is to collaborate with more auto companies to capitalize on the electric and intelligent transformation of the automotive industry. Despite its active participation, Huawei emphasized that it is not a car manufacturer but aids other carmakers in enhancing their vehicles.

Why It Matters: This partnership isn’t the first collaboration between Huawei and Changan Auto. In May 2021, Huawei extended its smart car partnership with Chongqing Changan to include chip development.

Prior to this, Huawei collaborated with Changan and other firms like the Seres Group to manufacture Aito-branded cars. The tech titan also constructs the S7 sedan with Chinese carmaker Chery under the new Luxeed brand, with the intent to rival Tesla‘s Model S.

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