Huawei to manufacture EVs with JAC Motors in Hefei - PingWest

Huawei to manufacture EVs with JAC Motors in Hefei

Huawei to manufacture EVs with JAC Motors in Hefei

3 hours ago

Huawei will collaborate with JAC Motors, also known as Anhui Jianghuai Automobile Group, to produce intelligent electric vehicles in Anhui province.

On February 16th, China State Construction Engineering Corporation announced that one of its subsidiaries won a contract to design, procure, and build a NEV industrial park in Hefei, Anhui province. The contract was valued at a total of 1.5 billion yuan ($218.2 million).

Upon completion of construction, the facility will be utilized by Huawei and JAC Motors to jointly develop a new generation of high-end smart EVs, the company said. 

The announcement was deleted a short time later. Neither Huawei nor JAC made any comments.

Back in June last year, rumors of Huawei would be cooperating with JAC to build EVs came out.

Similar to Huawei's previous cooperation approach with Chongqing-based automaker Seres, the telecommunications giant would play a significant role in defining new products, choosing core components, providing automobile software and hardware, as well as sales and marketing.

Although Huawei has not revealed any information about a potential tie-up with JAC, sources say the cooperation is making progress. Last month, officials in Hefei said they had meetings with Yu Chengdong, chief executive of Huawei's smart car solutions business unit, adding that they would move forward with Huawei's project with JAC in Feixi County.

Founded in 1964, JAC is one of the largest automobile companies in China, with a focus on commercial vehicles, including trucks, buses, and vans. In recent years, JAC has also expanded into the production of passenger vehicles, including electric vehicles. The company has several joint ventures with other international automotive companies, including a partnership with Volkswagen to produce EVs.

Financially, the company, like most EV-focused companies, has not fared well. According to JAC's recent financial report, its net profit in 2022 was -1.437 billion yuan, a significant drop compared to last year's net profit of 200 million.

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