By YANG Shihan, ZHOU Shuqi
With the announcement that Huawei’s car business will be transferred to a new JV with Changan Automobile, the automaker’s stock went limit up, reaching a new high in more than a year. Stock in Seres, Huawei’s partner for the Aito EV, however, fell by more than 6 percent.
The adjustment of Huawei’s business will not affect the partnership between the two and Aito production will not be affected. Seres Group has received an invitation to invest in the new company and participate in building an open platform.
Huawei is to provide only solutions and technical support, and will not make cars. More manufacturers are expected to join the venture soon.
Changan’s Avatr, Shenlan and Qiyuan are expected to benefit significantly from the deal, with Avatr having priority access to the latest technology, something denied Huawei, who claimed there is no expectation that technology will be given to Avatr first.
Beyond the tech, Huawei’s central advantages are the company’s many phone stores and enormous distribution network, reaching customers in cities at all levels, and reducing the need for a new showroom network.
