GAC Group has announced plans to establish a dedicated subsidiary to collaborate with Huawei on the development of smart vehicles. The new company, code-named “GH,” will have a registered capital of RMB 1.5 billion yuan ($200 million), as confirmed by GAC’s board of directors on January 10. The subsidiary will focus on jointly defining and designing vehicles with Huawei, working across product development, marketing strategies, and ecological services.
The partnership aims to introduce a new automotive brand based on cutting-edge technologies and a fresh vehicle architecture. The two companies will work together to launch a series of intelligent new energy vehicle (NEV) models.
According to a WeChat update from GAC, teams from both companies have already started collaborating on these products. The first model from the new brand is expected to be a premium smart NEV priced around RMB 300,000, offering a forward-thinking intelligent mobility experience for consumers.
This partnership marks a return to GAC’s ambitions to work with Huawei after a previous attempt was abandoned four years ago. In 2021, GAC’s electric vehicle subsidiary, Aion, had initially planned to co-develop an L4 self-driving vehicle with Huawei, with production slated for 2024. However, the AH8 SUV project was later redirected for development solely by Aion in March 2023.
The latest move sees a deepening of the collaboration, as GAC and Huawei signed a new cooperation agreement in November 2023 to develop a premium brand of smart NEVs alongside their existing Trumpchi, Aion, and Hyptec lines.
Huawei has been deeply involved in car-making collaborations, with its HIMA (Harmony Intelligent Mobility Alliance) initiative, under which it has worked with several automakers to develop brands such as Aito, Luxeed, Stelato, and Maextro, offering full-stack smart car solutions including smart cockpits and driving systems.