Chinese automaker SAIC on Feb. 21 announced a long-rumored partnership with Huawei to jointly develop and sell battery-powered electric vehicles under a new brand, with the first car expected to be the cheapest model featuring the technology giant’s assisted driving system.
Why it matters: The move comes as SAIC loses its car sales crown in China for the first time in nearly two decades, dropping to second place in 2024, as BYD topped sales of passenger vehicles at more than 4.2 million units.
- SAIC’s partners Volkswagen and General Motors are facing big headwinds from rising competition, weak consumer demand, and a slow response to in-car technology transition, with sales of cars from their joint ventures with the state-owned automaker declining 5.5% and more than half last year, respectively.
Details: SAIC has formed a “deep partnership” with Huawei to develop new, “globally competitive” smart electric vehicles, according to a statement published on the Chinese social media platform WeChat (our translation).
- SAIC’s chairman Wang Xiaoqiu and president Jia Jianxu, as well as Richard Yu, chairman of the board of directors of Huawei’s Intelligent Automotive Solution business unit, attended the signing ceremony of the agreement on Feb. 21 in Shanghai, where the state-owned automaker is headquartered.
- The companies did not reveal much about the upcoming EV lineup, called Shangjie in pinyin, already a registered trademark of SAIC. Still, the first joint model is expected to go on sale in the fourth quarter of this year at between RMB 150,000 and RMB 250,000 ($20,700 and $34,500), sources told local financial media Yicai last week.
- This would make it the cheapest model under the so-called Harmony Intelligent Mobility Alliance (HIMA) umbrella, where cars normally feature Huawei’s mobile operating system HarmonyOS and Advanced Driving System (ADS) and are available via Huawei’s retail network, the report said.
Context: SAIC joins a growing list of Chinese automakers licensing smart in-car systems from Huawei, as these features have become a major selling point, especially for tech-savvy younger customers.
- Huawei said that it delivered close to 450,000 EVs branded Aito, Luxeed, and Stelato, with three automakers Seres, Chery, and BAIC, respectively, last year, making its alliance a rising competitor to EV majors such as BYD and Li Auto.
- Also, the company on Feb. 20 held a press conference about the Maextro S800, the first model of the fourth brand under the HIMI umbrella. It also co-established the Avatr brand with Changan Automobile and supplies in-car systems to Audi, BYD, and Dongfeng.
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