Huawei to Develop Maybach-Level Smart Car in Collaboration with Zhanghuaiche

China's largest telecommunications equipment company Huawei is partnering with a local automobile manufacturer to jointly develop an intelligent connected electric vehicle. The market expects the vehicle to have the appearance of a luxury sedan modeled after the Mercedes-Maybach, with a price reaching 1 million yuan (approximately 183 million KRW).

On the 6th, China's Daily Economic News cited an industry research report released by Chosang Securities regarding Huawei's automotive business, reporting that Huawei plans to launch an intelligent connected electric vehicle with local automaker Zhanghua Automobile in the fourth quarter of next year. The price is expected to reach 1 million yuan, and it is anticipated to be released in the form of a luxury sedan at the Maybach level, according to Chosang Securities. The model's codename is known as 'X6.' However, regarding specific details, both companies reportedly avoided responding, stating they "have not received related notifications," Daily Economic News reported.

[Image source=Reuters Yonhap News]

Earlier, on the 1st, Zhanghua Automobile announced that the two companies had signed an 'Intelligent New Energy Vehicle Cooperation Agreement' to jointly build the vehicle system. The company explained that Zhanghua will be responsible for product manufacturing, while Huawei will oversee sales.

Yu Chengdong, CEO of Huawei Consumer Business and CEO of the Smart Car Division, recently mentioned at the Guangzhou Motor Show, "Currently, SERES is producing AITO, but soon Chiru, Beijing Automotive, and Zhanghua Automobile will also participate in production." AITO is a premium SUV electric vehicle model that Huawei launched in 2021 in partnership with Chinese electric vehicle manufacturer SERES.

Zhanghua Automobile's decision to sell assets symbolizing its cooperation with local new energy vehicle startup Weilai (NIO), its existing partner, has led to speculation that it will partner with a new collaborator.

In February, when China State Construction Engineering Corporation won the EPC project for the New Energy Vehicle Smart Industrial Park in Feixi County, Anhui Province, local reports suggested that this project would become the electric vehicle development center for Huawei and Zhanghua Automobile. The project’s winning bid was 1.544 billion yuan, with a construction area of 510,000 square meters.

Zhanghua Automobile, partnered with Huawei, is a company based in Anhui Province that began producing electric vehicles in 2010 and released its first model the following year. Since then, supported by government subsidies and the rapid growth of the electric vehicle market, its sales have steadily increased. Zhanghua Automobile recorded sales of 33.921 billion yuan and a net profit of 184 million yuan in the first to third quarters of this year.

Meanwhile, Huawei has recently accelerated the diversification of its automotive-related business structure. Previously, it announced the establishment of a new joint venture with the state-owned company Changan Automobile, integrating its core smart car automotive solution technologies and resources. However, Huawei maintains the position that it functions only as a partner to automobile companies and does not directly manufacture vehicles.