Chongqing News Observation | Avita's 11.5 billion yuan investment attracts attention. What kind of "chess" are Changan and Huawei playing?
2024-08-21
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Behind the deepening cooperation between Changan and Huawei, the development logic of the current automobile industry is revealed: the relationship between vehicle manufacturers and supporting suppliers is evolving from "Party A" and "Party B" in the supply chain to a community of interests. Traditional automobile companies, new car manufacturing forces and technological innovation companies are also accelerating the construction of a new ecology of the automobile industry through integrated development.
On the morning of August 20, the signing ceremony of the comprehensive strategic cooperation between Huawei and Changan Automobile and Avita Investment and Investment Company was held in Chongqing.
▲The signing ceremony. Photo provided by the interviewee
According to the agreement, Changan Automobile and Huawei will comprehensively upgrade their strategic cooperation in five major areas, including brand and ecology, cloud and AI technology, green energy, internationalization and industrial chain, to help the high-quality development of the automobile industry.
In addition, Avita Technology will invest 11.5 billion yuan to officially invest in Yinwang Intelligent Technology Co., Ltd. (hereinafter referred to as Yinwang), holding a 10% stake, and jointly support the company's future development with Huawei.
The reporter learned that Yinwang is a company established by Huawei to engage in the research and development, design, production, sales and services of automotive intelligent systems and component solutions. Huawei has integrated the core technologies and resources of its intelligent automotive solutions business into this new company.
On November 25 last year, Changan Automobile and Huawei signed a memorandum of investment cooperation, intending to invest in the new company's equity, with the final planned proportion not exceeding 40%. In the future, Changan and Huawei will jointly build the new company into a world-class leader in the automotive intelligent driving system and components industry.
Building "Bosch of China"
On January 16 this year, Huawei established Yinwang, whose business scope mainly includes automotive intelligent driving solutions, automotive intelligent cockpit, intelligent automotive digital platform, intelligent car cloud, AR-HUD and smart car lights.
Today, Avita Investment is expected to upgrade Huawei's automotive business from an independent operation to a joint participation in the automotive industry to build an open platform for electrification and intelligence. Huawei hopes to build a first-tier supplier in the era of smart cars with Changan and other vehicle manufacturers through this new company and become "China's Bosch".
Earlier, Zhu Huarong, secretary of the Changan Automobile Party Committee, revealed the details of the cooperation. He said that in the cooperation, Huawei promised not to engage in the vehicle business. Changan Automobile and Huawei will give full play to their respective advantages and resources, carry out in-depth collaboration and strategic cooperation, accelerate the large-scale commercialization of intelligent technology, allow global users to enjoy first-class intelligent experience, promote the development of China's intelligent automobile industry towards scale, intensiveness and sharing, enhance the resilience of the automobile industry chain and supply chain, and promote Chinese automobile brands to become world-class.
Chongqing car companies are one step ahead
In addition to Changan, Yinwang will also welcome more partners. The reporter learned that Seres announced on July 28 that it plans to invest in Shenzhen Yinwang. The specific investment amount, transaction method and transaction price shall be subject to the final transaction documents signed by both parties. Dongfeng Motor and FAW Group are also promoting cooperation.
Judging from Changan’s current level of participation in the cooperation and its future shareholding plan, Changan is intending to become one of the most important “locomotives” of the new company. The industry speculates that the second company to participate in the cooperation may be SERES.
Both of the above-mentioned car companies are from Chongqing. Is it a coincidence or is there another reason?
"Changan and SERES are the first car companies to carry out in-depth cooperation with Huawei. Judging from product sales and brand influence, the cooperation can be said to be extremely successful. This gives Huawei, Changan and SERES the confidence to continue to deepen their cooperation." Market observer Qu Yunchao told reporters that Chongqing car companies are one step ahead in cooperation with Huawei and will take the initiative in subsequent technology and product enhancement.
At the signing ceremony on the same day, Zhu Huarong said that Avita's investment in Yinwang fully reflects Changan Automobile's strategic intention: "As Changan's most important brand strategy carrier for innovation and progress, Avita represents the company's high-end development direction. Changan supports Avita to become the first company to invest in Yinwang in order to build it into the most vivid example of an 'open platform for joint participation of the automotive industry'."
▲Avita 11. (Photo provided by the company)
Integrated development builds a new industrial ecology
Behind the deepening cooperation between Changan and Huawei, the development logic of the current automobile industry is revealed: the relationship between vehicle manufacturers and supporting suppliers is evolving from "Party A" and "Party B" in the supply chain to a community of interests. Traditional automobile companies, new car manufacturing forces and technological innovation companies are also accelerating the construction of a new ecology of the automobile industry through integrated development.
Take Changan and Huawei as an example. In January 2018, Changan signed a strategic cooperation agreement with Huawei, China Mobile Communications, and China Mobile Internet of Things Co., Ltd. in Chongqing to carry out comprehensive joint development and research on LTE-V and 5G Internet of Vehicles. In July of the same year, Changan Automobile and Huawei signed a strategic cooperation agreement. In 2019, the two parties further established the "Changan-Huawei Joint Innovation Center". At the end of 2020, Avita, a high-end smart car brand jointly created by Changan Automobile, Huawei and CATL, came into being.
In addition to Huawei, Changan and Baidu reached a strategic cooperation on "smart cars" as early as March 2016. In 2017, the two sides reached cooperation in the fields of intelligent travel and mass production and research and development of autonomous driving vehicles, and then Changan joined Baidu Apollo. In August 2023, the Changan Automobile Intelligent Computing Center, which Baidu participated in building, was unveiled, and the two sides signed a contract to continue to deepen cooperation.
In addition, Changan has also carried out in-depth cooperation with Tencent, Alibaba and others in the fields of smart cockpits, Tongyi large models, etc.
Relevant persons from Changan Automobile stated that in the future, the company will continue to use new cars as the driving force, focus on areas such as chips, operating systems, core algorithms, etc., deepen cooperation with outstanding global companies such as Huawei, and create a model for the new ecology of China's automobile industry.
