SAIC Motor Partners with Huawei to Develop Smart Electric Vehicles
Chinese automaker SAIC Motor has announced a strategic partnership with Huawei to develop a new lineup of smart electric vehicles (EVs). The collaboration, revealed on Friday, will focus on manufacturing, supply chain management, and sales, though details on specific models remain undisclosed.
SAIC, a Shanghai-based state-owned car manufacturer, has been struggling with declining sales amid fierce competition and ongoing price wars in China’s EV market. Last year, the company reported a 20% drop in overall vehicle sales. Its joint ventures with Volkswagen and General Motors also suffered, with sales decreasing by 5.5% and 56.5%, respectively. SAIC also faced a 14% decline in overseas shipments in 2024, made worse by the European Union's decision to impose a 35.3% tariff on its exports.
By teaming up with Huawei, SAIC aims to strengthen its position in the smart EV industry. "The strategic cooperation between SAIC and Huawei will further leverage their respective advantages and promote China's automotive industry to a new level in the intelligent era," SAIC said in a statement. The partnership will focus on integrating Huawei’s cutting-edge smart driving technologies into SAIC’s vehicles, a strategy that has proven successful for other automakers working with the tech giant.
Huawei has been aggressively expanding its presence in the automotive industry, forming partnerships with various Chinese automakers to develop advanced EVs and hybrid vehicles. In 2022, it joined forces with Changan and battery maker CATL to create the Avatr brand, which saw its sales more than double in 2024. Similarly, Dongfeng-backed Seres tripled its annual sales of Aito-branded cars, with Huawei’s advanced driver assistance systems playing a key role in their success.
BAIC Motor also partnered with Huawei to launch the Stelato EV brand in August 2024. The tech company’s growing influence in the automotive market highlights its ambition to become a dominant force in China’s smart vehicle industry. With the SAIC deal, Huawei continues to cement its role as a crucial supplier of EV technologies, despite facing challenges in its core smartphone and telecommunications businesses due to international restrictions.
SAIC’s decision to collaborate with Huawei reflects a broader trend among Chinese automakers seeking to enhance their EV capabilities through partnerships with tech companies. The agreement follows a similar strategy adopted by Chery Automobile, which has also worked with Huawei to develop hybrid and electric models. These collaborations demonstrate the increasing convergence between the automotive and technology sectors as China pushes for innovation in the EV space.
The exact timeline for the launch of SAIC and Huawei’s co-developed EVs remains unclear, but the companies have emphasized their commitment to delivering globally competitive smart vehicles. As competition intensifies and price wars continue to shake the market, this partnership could help SAIC regain lost ground and better position itself for the future of intelligent electric mobility.
