Huawei Establishes New Smart Car Unit to Accelerate Automotive Ambitions Following Changan Deal
Huawei establishes new smart car unit, Shenzhen Yinwang Intelligent Technology. Joint venture with Changan Automobile to transfer Huawei's smart car system business. Open to additional industry partners joining the venture.
In a strategic move to expand its presence in the automotive industry, Huawei Technologies has announced the establishment of a new smart car company. This comes on the heels of the telecoms equipment giant's earlier joint venture with Chinese state-owned carmaker Changan Automobile. The new company, named Shenzhen Yinwang Intelligent Technology, was officially registered on Tuesday with a capital of 1 billion yuan (US$140.3 million) and is fully owned by Huawei.
Shenzhen Yinwang Intelligent Technology will focus on various aspects of the smart car industry, including manufacturing smart car equipment, integrating artificial intelligence (AI) systems, and developing AI software. This move highlights Huawei's commitment to leveraging its expertise in technology and connectivity to drive innovation in the automotive sector.
The establishment of the new venture follows Huawei's memorandum of cooperation with Changan Automobile, signed in November. As part of the partnership, Huawei plans to transfer its smart car system business to the new unit, integrating its core technologies and resources into the joint venture. This collaboration aims to create a robust platform for the development and deployment of smart car solutions.
While Huawei currently holds full ownership of the new company, it is open to the possibility of additional industry partners joining as stakeholders. This would enable the formation of a technology platform with diversified equity, fostering collaboration and driving further advancements in the smart car industry.
Richard Yu Chengdong, CEO of Huawei's consumer business group and chairman of its Intelligent Automotive Solution business unit, has called on Chinese carmakers Seres Group, Chery Automobile, JAC Motors, and BAIC Motor to consider taking an equity stake in the Huawei-Changan joint venture. These companies, which currently collaborate with Huawei under the Huawei Select model, have been instrumental in the development and launch of new brands such as Aito with Seres and Luxeed with Chery.
During Changan's global partnership conference, Chairman Zhu Huarong revealed that Huawei had committed to not producing cars under the joint venture. The two companies are currently in discussions to finalize the details of their partnership, which is tentatively named "Newcool" in English. The Huawei-Changan joint venture will focus on seven key areas, including intelligent automotive systems, smart cockpits, and a digital platform.
Huawei establishes new smart car unit, Shenzhen Yinwang Intelligent Technology
Joint venture with Changan Automobile to transfer Huawei's smart car system business
Open to additional industry partners joining the venture
Source: SCMP