Chinese state-owned automaker GAC Group has signed an agreement with local technology giant Huawei Technologies to jointly create a new battery electric vehicle (BEV) brand.

The two companies have agreed to strengthen their existing BEV partnership, which began in 2021 with the co-development of a smart battery-powered SUV, as they look to tap into the growing demand for smart connected BEVs in China, the world's largest vehicle market, and elsewhere.

GAC will contribute its expertise in vehicle manufacturing while Huawei will provide its leading-edge information and communication technologies. As part of the deal, the two companies will work together on product development, sales and marketing, and on developing an aftermarket ecosystem. The name of the new brand and the launch date were not disclosed.

GAC already has an EV unit, GAC Aion, which has expanded into overseas markets in the last two years. The company will become the fifth Chinese automaker to establish a new BEV brand with Huawei, following JAC, BAIC, Chery and Seres.

GAC said in a statement: "As the automotive industry shifts toward electrification and digitalization, the partnership aims to leverage the strengths of both companies to create new milestones in the intelligent vehicle sector.”