The Avatr 06 sedan is expected to be the first product under the new partnership model, according to local media.
Avatr Technology, an electric vehicle (EV) company backed by Changan Automobile, CATL, and Huawei, has signed a new agreement with Huawei to explore a partnership model unlike any other.
The Changan subsidiary signed the agreement to deepen its strategic cooperation with Huawei at the tech giant's headquarters in Shenzhen on December 12, taking the partnership to a new stage with a “new model,” according to an announcement yesterday.
The two sides will cooperate in depth in areas including product development, marketing and ecological services to support Avatr to build the next generation of car models, Huawei's announcement said.
This is a further deepening of the partnership between Huawei and Avatr since they entered into a strategic partnership in January 2019.
A signing ceremony was witnessed by Zhu Huarong, Changan and Avatr's shared chairman, and Eric Xu, Huawei's rotating chairman.
Neither Avatr nor Huawei mentioned details about the partnership, but it's the first time in the past few years that the two have expanded their collaboration to include product development and marketing.
Huawei has three ways of working with car companies, with the model where it launches a new brand with a car company to build vehicles being the one it's most deeply involved in. Initially known as Zhixuan, the model was upgraded in November 2023 to HIMA (Harmony Intelligent Mobility Alliance).
Under the HIMA business, car companies currently working with Huawei include Seres, Chery, Beijing Automotive Group (BAIC Group), and Anhui Jianghuai Automobile Group (JAC).
In the model where Huawei is least involved, the tech giant only provides components and the HarmonyOS system.
The model in the middle of the spectrum is Huawei Inside (HI), where Huawei provides full-stack smart car solutions, including smart cockpit and smart driving, to car companies.
Avatr and Huawei have been working together based on the HI model since 2022, and have launched the Avatr 11, Avatr 12, and Avatr 07 under this approach.
These Avatr models are equipped with Huawei's smart driving and smart cockpit solutions, but their product definition, marketing, and manufacturing are led by Avatr.
Huawei will be further involved in Avatr's marketing efforts after the latest agreement was signed, a move that incorporates some of the features of the HIMA model, local media Yicai said in a report yesterday, citing a source close to Avatr.
The Avatr 06 sedan, which Avatr recently started previewing, is expected to be the first product under the new partnership model to see Huawei's influence in its marketing, the source said.
The Avatr 06 will be officially launched in the second quarter of next year, according to Yicai.
Separately, according to another local media outlet, 36kr, the partnership between the two is an upgraded version of the HI model, dubbed HI Plus by some industry insiders, with the most significant difference from the HIMA model being that the vehicles are will not be sold in Huawei's channels.
Huawei's partnership agreement with GAC Group, signed on November 30, is similar to its latest deal with Avatr, and is a brand new partnership model that the tech giant has introduced to car companies, according to 36kr.
Avatr was initially founded as Changan Nio by Changan and Nio on July 10, 2018. Currently Nio has substantially exited from the joint venture.
Prior to the latest agreement, Avatr signed a deal with Huawei in August to buy a 10 percent stake in Newcool for RMB 11.5 billion ($1.58 billion), making it the second largest shareholder in that Huawei automotive business unit.
Newcool was valued at RMB 115 billion in the deal.
($1 = RMB 7.2793)
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