Huawei sets up new smart car unit as it accelerates automotive ambitions in wake of earlier deal with Changan

The new company, named Shenzhen Yinwang Intelligent Technology, was set up on Tuesday with a registered capital of 1 billion yuan (US$140.3 million) and is wholly owned by Huawei, according to records on business registry information platform Tianyancha.

The records show that the new firm’s business covers smart car equipment manufacturing, artificial intelligence (AI) system integration services, and AI software development, among other areas.

The development comes after Huawei signed a memorandum of cooperation in November with Changan Automobile, a major state-owned carmaker based in Chongqing, southwestern Sichuan province, to start a new smart car JV.

Under the partnership, Huawei said it plans to transfer its smart-car system business to a new unit with investments from Changan Automobile and “integrate the core technologies and resources of [Huawei’s] smart car solutions into the new company”.

The new venture was set up by Huawei’s car unit to serve the industry better with its smart car solutions, according to a person familiar with the situation who declined to be named. Huawei declined to comment on the relationship between the new entity and its JV with Changan.