Huawei Boosts Smart Car Ambitions by Inviting Four Carmakers to Invest in 'Changan' Joint Venture

Huawei Technologies is making significant strides in the smart car industry by extending invitations to four carmakers to join its new joint venture with Changan Automobile.

Credit: TNS

The telecommunications equipment giant, which has faced sanctions from the US, aims to establish a strong presence in the electric vehicle (EV) market.

During the launch event for the Luxeed S7 sedan, Yu Chengdong, CEO of Huawei's consumer business group and chairman of its Intelligent Automotive Solution business unit, called on Chinese carmakers Seres Group, Chery Automobile, JAC Motors, and BAIC Motor to take an equity stake in the venture.

These companies already collaborate with Huawei under the Huawei Select model, where they work closely on product design and sales.

Huawei is also open to collaborating with larger firms like FAW Group, a top state-owned car manufacturer in China, to develop smart vehicle solutions. The recent memorandum of cooperation signed between Huawei and Changan Automobile paves the way for the establishment of the new smart car company. Changan Automobile is expected to hold up to 40% equity in the venture.

As part of the transition, employees at Huawei's in-house car unit will be offered compensation and the opportunity to transfer to the new entity while retaining their Huawei stock and receiving dividends. Seres has confirmed that it received an invitation to invest in the joint venture and is actively discussing the opportunity, while JAC is also engaged in discussions with Huawei.

While Huawei's presence in the EV industry has garnered attention, its actual sales remain relatively small compared to competitors like Tesla. However, with Changan as a stable client, the new joint venture is expected to expand Huawei's customer base for its smart car system and increase its revenue stream.

Huawei has recently launched its first electric sedan, the S7, in collaboration with Chery under the Luxeed brand. Priced at 249,800 yuan (US$35,000), the vehicle has already received 20,000 pre-orders, indicating strong initial demand.

---

• Huawei is inviting four carmakers to invest in its joint venture with Changan Automobile to accelerate its smart car ambitions.

• The invited carmakers, including Seres Group, Chery Automobile, JAC Motors, and BAIC Motor, already collaborate with Huawei under the Huawei Select model.

• Huawei is open to collaborating with larger firms like FAW Group to develop smart vehicle solutions.

Source: SCMP