Nio’s production partner, Anhui Jianghuai Automobile Group (JAC), has just inked a landmark agreement with Chinese tech giant Huawei to co-develop new luxury electric vehicles, ArenaEV reports.
Partnership details
JAC and Huawei officially signed the deal on Friday in Hefei, Anhui, the same province where JAC built its headquarters.
JAC’s stock exchange announcement revealed that it will closely cooperate with Huawei on electric vehicle development, production, sales, and service based on the latter’s high-tech smart car solutions.
Objective
Notably, the two Chinese players primarily aim to develop and produce luxury, intelligent, internet-connected electric car models.
Through these planned models, the partners expect to meet the increasing demand for more advanced models via constant upgrades.
Notably, Huawei and JAC particularly target the luxury segment in the global electric vehicle market.
Responsibilities distribution
JAC will leverage its auto production expertise to lead the EV product development. It will establish a cutting-edge production hub and employ its production prowess.
Meanwhile, Huawei or a third party it assigns will exclusively manage sales for the jointly developed models on a global scale. They will also agree on the terms and conditions for the models’ export business.
The landmark deal is effective for ten years from the date Huawei and JAC signed the agreement, according to CnEVPost.
Unfortunately, the partners did not disclose the product development schedule. It also remains unclear if they plan to establish a new joint venture for the project.
The partnership will enable JAC to learn more about Huawei’s engineering and development system. Likewise, Huawei can tap into JAC’s carmaking expertise. Interestingly, previous reports imply that the partners aim to penetrate the ultra-high-end luxury EV segment with a price range of about RMB 800,000 (around €104,400).
