Chinese telecoms equipment giant Huawei Technologies continued to strengthen its focus on new auto technology with the establishment of a new company encompassing its autonomous driving and connected technology operations, according to local reports citing data from a business registry.

The new company, Shenzhen Yinwang Intelligent Technology, was established this week with a registered capital of CNY1bn (US$140m) and is a wholly owned subsidiary of Huawei Technologies. Registration data shows the business is licensed to operate in AI software development, smart car equipment manufacturing and systems integration services and among other areas.

Huawei plans to leverage its in house artificial intelligence (AI) and telecom technologies to play a key role in the next generation smart car industry.

At the end of last year, it agreed to establish a joint venture with Chinese state owned automaker Changan Automobile to produce next generation smart connected vehicles. Under the memorandum of understanding signed in November, Huawei had agreed to transfer its smart car system business to the joint venture with Changan Automobile with a view to “integrating the core technologies and resources of Huawei’s smart car solutions into the new company”.

Richard Yu Chengdong, chairman of Huawei’s Intelligent Automotive Solution business unit, had also invited other Chinese automakers including JAC Motors, BAIC Motor, Seres Group and Chery Automobile to take an equity stake in the Huawei-Changan joint venture.

With its new wholly owned subsidiary, Huawei is positioning itself to become a more focused independent supplier of smart connected technology platforms to the broader automotive industry.