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Huawei is joining forces with state-owned Chinese car manufacturer Changan Auto to establish a new company focusing on advanced automotive systems and components.

The new company will be set up by Huawei and Changan’s ownership stake will not exceed 40%. It will focus on the research and development, production, sales, and service of intelligent automotive systems and component solutions. A press release issued by Changan adds the company will also develop intelligent driving solutions, smart cockpit technologies, a smart digital car platform, smart lighting systems, and augmented-reality head-up display tech.

“The new company will … work with partners to promote innovation and leadership in smart car technology and promote the prosperity and development of the automotive industry,” Huawei added in its announcement. “The two parties will jointly support the target company to become an industry leader in automotive intelligent systems and component solutions based in China.”

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 Huawei Partners With Changan To Develop In-Car Tech

Huawei’s partnership with Changan aligns with its stated goal of helping existing car manufacturers make their vehicles even better, rather than aiming to build cars of its own like fellow Chinese technology giant Xiaomi is doing, Reuters reports. It already works with Seres to produce vehicles under the Aito brand and has also established the Luxeed brand in partnership with Chery. The first model from that brand is the sleek S7 sedan, positioned as a rival to the Tesla Model S.

Read: Nio’s Battery-Swapping Network Expands As Changan Automobile Joins the Fold

In September, the head of Huawei’s car unit, Richard Yu Chengdong, claimed that the Luxeed S7 would be superior to the Model S. Sales of it will start on November 28 and the entry-level version packs a 60.48 kWh battery pack with a single electric motor rated at 288 hp (215 kW). Those seeking more power can order it with a 79.9 kWh battery and a pair of electric motors that combine to produce 489 hp (365 kW).

 Huawei Partners With Changan To Develop In-Car Tech
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