Beijing:

China’s Huawei said on Sunday it would transfer key technologies and resources in its smart car unit, which has driven strong sales of several new vehicles, to a new joint company 40% owned by automaker Changan Auto.

The new company will engage in the research and development, production, sales and service of intelligent automotive systems and component solutions, Huawei said in a press release.

“The new company will work with partners to foster innovation and leadership in smart car technology and foster the prosperity and growth of the automotive industry,” the release said.

Chongqing Changan Automobile said in a filing to the Shenzhen Stock Exchange on Sunday that the equity ratio and the amount of capital contributed will be negotiated by the two parties.

“The two parties will jointly support the target company to become an industry leader in automotive intelligent systems and component solutions based in China,” the filing said.

Yu Chengdong, Huawei’s managing director and chairman of its smart car solutions unit, said at a signing ceremony in Shenzhen that the smartphone maker will work with more auto companies to “seize the opportunities of electrification and intelligent transformation of the auto industry.” Said.

Huawei has repeatedly Said It doesn’t make cars itself but only helps other automakers make better vehicles.

It has existing partnerships with Changan as well as other companies including Ceres Group. Huawei and Ceres jointly produce Aito branded cars, including the M7 model.

Huawei has also teamed up with Chinese automaker Chery to create the S7 sedan under a new company Luxide, which it intends to position as a competitor to Tesla’s Model S.

Huawei said in October get It received more than 50,000 orders for its revised M7 model during the first 25 days of sales, putting Aito among China’s five best-selling new energy vehicle makers based on August data.