Second Chinese Automaker to Invest in Huawei’s Smart Car Unit

By Kelsey Cheng and An Limin

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The Aito M5 on display at the 2024 Beijing International Automotive Exhibition on April 29. Photo: VCG

Seres Group Co. Ltd. (601127.SH) said it plans to invest in Huawei Technologies Co. Ltd.’s new smart car unit, making it the second auto partner to throw its weight behind the Chinese tech giant’s venture.

Details of the deal have yet to be finalized, including the size of the investment and details of the transaction, Chongqing-based Seres said in a filing to the Shanghai Stock Exchange on Monday.

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Seres Group plans to invest in Huawei's new smart car unit, becoming the second auto partner to support the venture.
Investment details are pending; Seres will acquire a stake in Huawei's Yinwang Intelligent Technology to help it lead in automotive intelligence.
Chinese automakers aim to enhance smart car tech to compete in the market and fend off companies like Tesla and XPeng.

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Who’s Who

Huawei Technologies Co. Ltd.: Huawei Technologies Co. Ltd. is a Chinese tech giant that has ventured into the smart electric vehicle (EV) business, seeking to offset the impact of U.S. sanctions on its other divisions. The company’s new subsidiary, Yinwang Intelligent Technology Co. Ltd., integrates Huawei’s Intelligent Automotive Solution Business Unit and focuses on developing intelligent driving solutions and components. Huawei’s automotive partners include Seres Group, Changan Automobile, and JAC.

NIO Inc.: The article does not mention NIO Inc. It focuses on Seres Group Co. Ltd.'s planned investment in Huawei Technologies Co. Ltd.’s new smart car unit, as well as other automakers like Chongqing Changan Automobile Co. Ltd. and Anhui Jianghuai Automobile Group Corp. Ltd. (JAC) that are collaborating with Huawei.

XPeng Inc.: XPeng Inc. is a competitor in the Chinese auto market that recently rolled out its AI-powered in-car operating system in May. The company is one of the key players ramping up smart driving development to compete with both foreign rivals like Tesla and local automakers. XPeng's innovations are part of the broader trend among Chinese companies to enhance their smart car technologies.

NIO Inc.: The article does not mention NIO Inc. It focuses on Seres Group Co. Ltd.'s planned investment in Huawei Technologies Co. Ltd.'s smart car unit, alongside other automakers like Changan and JAC that are collaborating with Huawei in the development of intelligent vehicle technology. If you need specific information about NIO Inc., additional sources or articles would be needed.

Tesla Inc.: Tesla Inc. is mentioned as a foreign rival in the Chinese auto market, with its Full-Self Driving system inching closer to launching in China. This poses competition to Chinese automakers, who are ramping up their smart driving development to stand out with self-driving software and connectivity features.

Chongqing Changan Automobile Co. Ltd.: Chongqing Changan Automobile Co. Ltd. (000625.SZ) is the first automaker to show interest in investing in Huawei’s smart car unit, signing a memorandum of cooperation in November to take up to a 40% stake. Changan produces cars with Huawei's technology, including two EV brands, Avatr and Deepal, which utilize Huawei’s smart car system.

Anhui Jianghuai Automobile Group Corp. Ltd.: Anhui Jianghuai Automobile Group Corp. Ltd. (JAC) (600418.SH) is in discussions with Huawei about a potential investment in Huawei’s new smart car unit. JAC is collaborating with Huawei on developing the X6 platform for luxury electric vehicles (EVs). Further details of the prospective deal have not been disclosed.

AI generated, for reference only

What Happened When

November 2023：: The smart car unit was first announced by Huawei.

November 2023：: Chongqing Changan Automobile Co. Ltd. signed a memorandum of cooperation with Huawei to take as much as a 40% stake in the new company.