Huawei accelerates smart car ambitions with invitation to four carmakers to invest in Changan joint venture

Huawei called on current partners Seres, Chery, JAC and BAIC to take a stake in a new joint venture initiated by Huawei and Changan Automobile

The companies already partner with Huawei to make electric cars, but the tech giant said it was also open to collaborating with state-owned firms like FAW

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Customers experience the Luxeed S7 at Huawei’s flagship store in Shanghai on November 12, 2023. Chery Automobile, which manufactures Luxeed vehicles, was invited by Huawei along with three other companies to invest in a new smart car venture. Photo: TNS

Published: 9:15pm, 28 Nov 2023Updated: 9:15pm, 28 Nov 2023

Huawei Technologies is inviting four additional carmaking partners to join its new smart car joint venture, which it started with Chinese state-owned carmaker Changan Automobile, as the US-sanctioned telecommunications equipment giant gears up for a major move in the electric vehicle (EV) industry.

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 enterprise during the launch event for the Luxeed S7 sedan on Tuesday.

All four companies – generally considered smaller carmakers in the country – currently partner with Huawei to develop and sell new brands under the so-called Huawei Select model, through which the smartphone giant collaborates closely with companies on everything from product design to sales. These brands include Aito with Seres and Luxeed with Chery.

Yu also said the company welcomes bigger firms such as FAW Group, one of China’s top state-owned car manufacturers, to collaborate on smart vehicle solutions.

Yu’s comments came just after Huawei signed a memorandum of cooperation with Changan Automobile, a major carmaker based in the southwestern city of Chongqing, to set up a new smart car company.

Under the deal inked on Sunday, Huawei said it plans to transfer the business of its smart-car system to the new unit, with Changan Automobile expected to hold up to 40 per cent of equity in the venture.

Employees at Huawei’s in-house car unit were offered compensation of one month’s pay for each year worked plus an extra month’s salary to transfer to the new entity, while being allowed to keep their Huawei stock and receive dividends, according to a report by Chinese media outlet Jiemian News on Tuesday. Huawei declined to comment on the report.

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