Chinese technology giant Huawei is expanding its presence in the electric vehicle (EV) market with a new partnership with JAC Motors. The two companies will collaborate to produce luxury pure electric vehicles priced between RMB 800,000-1 million ($146,000), according to a report from local media outlet 36kr. This move follows Huawei’s recent partnership with Seres Group, with which it launched a premium new energy vehicle (NEV) brand called AITO.
JAC Motors is an original equipment manufacturer (OEM) for EV brand NIO, but in this partnership with Huawei, it aims to gain more flexible cooperation opportunities by learning from the tech giant’s engineering development system. Huawei will be involved in the development of the project’s vehicles, electrical and electronic architecture, and core systems.
The Huawei-JAC car-making project is located in the JAC Xingang Industrial Park in Feixi county, Hefei, Anhui province, with a total investment of around RMB 2.6 billion ($380 million). The project is expected to be completed early next year, and it will have an annual capacity of 300,000 units. Once completed, it can produce B to D+ class vehicles, including Sedan, SUV, MPV, Crossover, and Sporty models.
Huawei’s most significant automotive partner currently is Seres Group, with which it has already launched a premium NEV brand called AITO. The two companies plan to deepen their joint business further and will launch a new vehicle platform. The first flagship model of this platform is expected to be released in 2023. The companies aim to see annual production and sales of both NEVs reach 1 million units by 2026.
Huawei’s move into the EV market comes as the industry continues to expand rapidly in China, with sales of new-energy vehicles growing by more than 12% in 2021. The Chinese government has set a target of having NEVs account for 20% of all new car sales by 2025, up from around 5% currently.
Overall, Huawei’s foray into the EV market is an exciting development for the industry, and the company’s partnership with JAC Motors and Seres Group could have a significant impact on the Chinese automotive market. As the industry continues to grow, we can expect to see more exciting developments from Huawei and other tech giants looking to enter the market.
