GAC Group has announced plans to establish a dedicated subsidiary, codenamed “GH,” with a registered capital of RMB 1.5 billion ($200 million) to collaborate with Huawei in the automotive industry. This collaboration will involve the launch of a new automotive brand, with the first product being an electric vehicle (EV) model priced in the RMB 300,000 range.
The board of directors at GAC approved the formation of the subsidiary on January 10, with the aim of working closely with Huawei to define and design vehicles, as well as collaborate on product development, marketing strategies, and ecological services. Teams from both companies have already begun working together to develop a series of intelligent new products.
The new brand’s first product is expected to be a premium smart NEV model, offering consumers a cutting-edge intelligent mobility experience. This collaboration marks a renewed partnership between GAC and Huawei, following previous plans to jointly develop cars that were abandoned.
In May 2021, GAC announced a partnership with Huawei to co-develop an L4 self-driving car, with production scheduled for 2024. Additionally, GAC’s EV subsidiary Aion had previously planned to collaborate with Huawei on a luxury premium brand, but the partnership was later changed to have Aion develop the model independently.
Last year, GAC and Huawei signed a deepening cooperation agreement to create a new brand of premium smart NEVs. This partnership aligns with Huawei’s strategy of working with car companies to launch new brands and build vehicles, as part of the Harmony Intelligent Mobility Alliance (HIMA) model.
Under the HIMA business, Huawei has collaborated with local automakers to create four new brands, with six models currently on sale. This partnership signifies a significant step towards the development of intelligent and sustainable mobility solutions in the automotive industry.
The collaboration between GAC and Huawei represents a strategic move towards innovation and technological advancement in the automotive sector. By leveraging each other’s expertise and resources, both companies aim to deliver cutting-edge vehicles that offer a seamless blend of intelligence, sustainability, and driving experience.
