Huawei moving smart car operations to new JV

The Chinese company, Huawei has revealed that it is working towards moving it’s core technologies and resources in its smart car unit, which has chalked up robust sales for a number of new vehicles, to a new joint company owned up to 40% by Changan Auto.

In a press release, Huawei mentioned that the new company will be engaging in research and development, production, sales and service of intelligent automotive systems and component solutions.

In a filing with the Shenzhen Stock Exchange on Sunday, Chongqing Changan Automobile said the equity ratio and amount of capital contributed will be negotiated by the two parties.

“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.

Yu Chengdong who is the Huawei MD and chairman of the smart car solutions unit said the smartphone manufacturer would work with more auto firms to “seize the opportunities of the electrification and intelligent transformation of the auto industry.”

This is not the first time that Huawei has mentioned that it does not make cars on its own but only helps other automakers make better vehicles.

At the current moment, Huawei already has an existing partnership with Changan amongst other companies, which include Seres Group. Huawei and Seres jointly produce Aito branded cars, including the M7 model.