SAIC Motor, one of China’s largest automakers, has made a move that will intensify competition in the smart electric vehicle market. The company has entered into a significant partnership agreement with Huawei. So, how will this collaboration impact the automotive world? Here are the details…

Strategic Partnership Between SAIC and Huawei

SAIC Motor, one of China’s largest car manufacturers, plans to develop “globally competitive” smart electric vehicles by joining forces with technology giant Huawei. SAIC stated that this strategic partnership will combine the strengths of both companies, elevating China’s automotive sector to a new level.

According to the agreement, SAIC and Huawei will collaborate on production, supply chain management, and sales services. However, the details of the jointly developed models have not been revealed yet.

This partnership comes at a challenging time for SAIC. The state-backed automotive giant experienced a 20% decline in total vehicle sales last year. Its joint ventures with Volkswagen saw a 5.5% loss, and with General Motors, a 56.5% drop. Moreover, SAIC’s international sales decreased by 14% due to the European Union’s 35.3% additional tariff.

On the other hand, Huawei’s influence in the automotive sector is growing. The tech company has also formed partnerships with other major Chinese car manufacturers like Changan, Dongfeng, and BAIC Motor, establishing a significant presence in the market with smart driving technologies. Changan’s Avatr electric vehicles, developed in collaboration with CATL, doubled their sales in 2024. Dongfeng’s Seres brand grew threefold with its Aito models. Huawei also launched the Stelato brand with BAIC Motor.

SAIC and Huawei’s latest move is expected to further increase competition in China’s electric vehicle market. It remains to be seen how these two giants will innovate in the market.

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