Changan and Huawei collaborate to establish a new automotive venture.

In a significant development for the global automotive sector, Changan Automobile and tech giant Huawei have once again formed a collaborative venture. Changan, in an announcement to the Shenzhen Stock Exchange, disclosed the signing of a memorandum of cooperation with Huawei to invest in a new company dedicated to designing and manufacturing intelligent automotive systems and components.

This new company will be established by Huawei, with Changan acquiring a stake of up to 40%. The joint venture aims to position Changan as a low-carbon, smart transportation technology company.

While this marks another collaboration between the two entities, notable for their existing partnership under the Avatr brand, it signifies Huawei's financial involvement for the first time. Previously, Huawei contributed technology through its automotive division. Under this new collaboration, Huawei will establish a company focusing on research, development, and production of smart driving systems and components.

The business scope of this venture is described as comprehensive, covering various areas within the automotive industry, including smart driving solutions, smart cockpits, digital platforms, car clouds, Augmented Reality Head-Up Display (AR-HUD), and car lighting systems.

Furthermore, Huawei intends to integrate its key technologies and resources in smart car solutions into this venture. The memorandum of cooperation represents the initial expression of intent, with detailed transaction agreements, including an equity purchase agreement and a shareholders' agreement, expected to be finalized in the next six months.