Chinese state-owned automaker GAC has made a groundbreaking announcement regarding its collaboration with tech giant Huawei. The two companies are joining forces to establish a new subsidiary known as the GH Project, with a substantial registered capital of 1.5 billion yuan (equivalent to 204.6 million USD). The primary focus of this new venture will be the production of cars, with the first model set to be a new energy vehicle priced at around 300,000 yuan (approximately 40,920 USD).
This strategic partnership between GAC and Huawei was initiated in November 2024 when both companies signed a cooperation agreement to create a brand-new automotive entity. Termed as “Huawei Intelligence + GAC Manufacturing,” this collaboration aims to leverage the strengths of both parties in product development, design, marketing strategy, and ecological services. While initial speculations hinted at the new brand becoming a part of the Huawei-backed Harmony Intelligent Mobility Alliance (HIMA), GAC officials clarified that the cooperation model between the two entities would be distinct from the HIMA framework.
On January 10, GAC officially confirmed its plans to launch the GH Project, which will introduce cutting-edge products built on a new architecture. The collaboration between GAC and Huawei will extend across various aspects, including product development, design, marketing strategy, and ecological services. The GH Project is slated to introduce its inaugural model, a new energy vehicle with advanced Huawei driving assistance and infotainment systems, at a competitive price point of 300,000 yuan.
Notably, this is not the first time GAC and Huawei have collaborated on automotive projects. In 2021, the two companies had intended to launch a high-end brand together, with the AH8 crossover poised to be the flagship product. However, in 2023, GAC announced a shift in strategy, opting to develop the AH8 model using in-house technology rather than Huawei’s solutions. This decision ultimately led to the release of the Hyptec HL full-size SUV.
The GH Project marks GAC’s foray into its fourth car brand, following the likes of Trumpchi, Aion, and Hyptec. Additionally, the GAC Group holds shares in the troubled Hycan brand, a former joint venture between GAC and Nio. Recent reports have indicated that Hycan faced financial difficulties, resulting in layoffs and compensation defaults for employees. Currently, GAC Aion holds a 20.54% stake in Hycan, GAC Group controls 4.46%, while Zhujianf Investment Management possesses the majority share of 68.56%.
The collaboration between GAC and Huawei under the GH Project signifies a significant milestone in the automotive industry, combining expertise from both entities to deliver innovative and technologically advanced vehicles to the market. As the partnership progresses, consumers can anticipate a new wave of energy-efficient and feature-rich cars that showcase the best of Chinese automotive and tech capabilities.
