Huawei and JAC to jointly create luxury smart EVs

03 December 2023

The Chinese tech giant Huawei has joined forces with Nio's manufacturing partner, Anhui Jianghuai Automobile Group (JAC), to embark on a journey toward the creation of luxury electric vehicles. This partnership is set to focus on smart, internet-connected EVs that cater to the evolving needs of consumers - with particular attention to be paid to the luxury end of the market.

JAC and Huawei inked a landmark deal in Hefei, Anhui province, solidifying their commitment to jointly develop EVs. The collaboration extends beyond product development to encompass manufacturing, sales, and service, all powered by Huawei's cutting-edge smart car solutions.

What is interesting is the fact that Huawei and Seres already are manufacturing EVs under the Aito brand. That brand was initially meant to be the epitome of luxury with Aito M5 being the early disruptor. It seems Huawei decided it needs yet another brand to ensure a much narrower focus on a specific niche of the EV market.

This new partnership's primary objective is to create a new generation of luxury EVs that are not only smart but also seamlessly connected to the internet. The aim is to continually upgrade and enhance these models to meet the ever-evolving expectations of users. JAC, with its wealth of automotive expertise, will take the lead in product development.

JAC is set to establish an advanced production base to leverage its manufacturing capabilities fully. This move reflects the company's commitment to producing high-quality EVs that will compete at the highest levels of the market. Under the agreement, Huawei or a designated third party will exclusively handle global sales and distribution for the joint models.

The agreement is set to last for a decade, and it won't have any immediate impact on JAC's financial position in 2023. However, it holds immense promise for both companies in terms of future growth and market presence.

While the partnership between JAC and Huawei is now official, certain key details remain undisclosed. It's unclear whether the collaboration will lead to the establishment of a joint venture or when we can expect the first product to hit the market.

Reports have suggested that JAC and Huawei are targeting the ultra-high-end luxury EV market, with a price range estimated to be around RMB 800,000 (around $112,000).

This is Huawei's yet another foray into the automotive world. The tech giant has already joined forces with car manufacturers like Seres Group and Chery to produce cutting-edge vehicles. The collaboration with JAC, however, presents a unique opportunity for JAC to tap into Huawei's extensive engineering and development expertise, paving the way for more flexible cooperation.

Intriguingly, analyst Ming-Chi Kuo has shed light on a specific project arising from the JAC-Huawei partnership - an MPV model priced at nearly RMB 1 million. This model is expected to enter mass production in the second quarter of 2024, with an ambitious target of shipping around 50,000 units annually post-launch. Clearly, both Huawei and JAC have been watching Zeekr 009 and Volvo EM90 carving out a niche in the market - and now they want a piece of that pie.

Via