Chinese state-owned automaker Changan Automobile Company Ltd, headquartered in Jiangbei in Chongqing province, has moved to strengthen its partnership with local tech giant Huawei Technologies Company Ltd in the area of smart automotive technologies.
Changan Auto’s battery electric vehicle (BEV) joint venture, Avatr Technology Company Ltd, agreed to acquire a 10% stake in Huawei’s Yinwang Intelligent Technology Company Ltd subsidiary for CNY11.5bn (US$1.6bn), valuing the company at CNY115bn. Shenzhen-based Huawei will hold the remaining 90% of the equity.
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Changan Auto revealed last November it planned to invest in a 40% stake in a new joint venture into which Huawei would transfer its smart-car system business, with the two companies looking to forge an advanced R&D partnership focused on smart vehicle solutions.
Huawei spun off its smart car technology development operations in January 2024 into Yinwang Intelligent Technology Company, a newly-established company with a registered capital of CNY1bn focused on developing intelligent automotive systems and components using artificial intelligence (AI) and on developing AI-based software.
Avatr is a joint venture controlled by Changan Auto with a 41% stake, with Chinese battery-maker CATL holding a 14% stake and with the Chongqin Chengan Foundation among its smaller shareholders with an 11% stake, according to industry data.
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