Chinese carmaker Guangzhou Automobile Group has established a subsidiary to jointly launch a new luxury auto brand with Huawei Technologies, integrating the tech giant's intelligent driving software and business development model from design to sales.
GAC invested CNY1.5 billion (USD207.5 million) to set up wholly-owned Huawang Automotive Technology Guangzhou, it announced on WeChat on March 18. The parent firm aims to become one of the world's leading carmakers in smart driving tech and relevant research and development capabilities by 2027, it added.
The first model under the new Huawang brand will be a luxury intelligent new energy vehicle priced at around CNY300,000 (USD41,490), an insider from GAC told Yicai.
Huawang Auto's vehicles will be equipped with Huawei's solutions, including intelligent driving, smart cockpit, and intelligent vehicle controls, the insider noted. In addition, the unit will deeply incorporate the tech firm's experience in the entire process, from product definition and marketing to ecosystem services, the person added.
GAC and Huawei will adopt a new deeper and more innovative cooperation model with Huawang Auto compared with the usual Smart Selection model, the insider said. Staff from GAC and Huawei's auto business unit have already started working in shared offices on co-developing new intelligent models, the person added.
Huawei has said multiple times that it will not directly produce cars, with the Shenzhen-based firm having three partnership approaches with carmakers: vertical parts supplier; intelligent systems supplier via Huawei Inside; and full-set solutions supplier through Huawei Smart Selection.
The wave of intelligent driving is sweeping the Chinese auto industry. Over the past two months, more than 10 carmakers have announced that they are targeting to achieve full intelligent driving this year.
Allying with tech firms such as Huawei and Momenta Global is a way for traditional carmakers to transform intelligently and compete for market share. GAC, Changan Automobile, and other such manufacturers have established deep ties with Huawei, with its intelligent driving tech being installed on more than 15 premium models under 11 brands.
