JAC and Huawei Collaborate to Build Luxury Electric Vehicles of the Future

Illustration of Huawei cars. (Doc. Arenaev)

JAKARTA - Chinese car manufacturer JAC has signed an agreement with Chinese technology giant Huawei to jointly build electric vehicles (EV).

Quoted from the Cenvpost page, Monday, December 4, the two companies signed an agreement today in Hefei, Anhui Province, the headquarters of the JAC company, and will collaborate in product development, manufacturing, sales and services based on Huawei's smart car solutions.

"The goal of both is to create a luxurious, intelligent, and internet-connected electric vehicle and meet the higher needs and expectations of users through continuous improvements to the combined models," wrote the JAC report.

In the future, product or car model development will be under the overall responsibility of JAC as well as creating an advanced production base to utilize its capabilities in the manufacturing sector.

The agreement is valid for 10 years from the signing date, and will not affect JAC's operating results and financial position in 2023.

However, JAC did not mention details about this collaboration, whether it would build a joint venture to create various vehicle models, or a schedule for further product development.

According to reports from local media last April, Huawei and JAC will build a model aimed at the ultra-high-end luxury electric vehicle market, with a price range of around 800,000 yuan or around IDR 1.7 billion.

Talking about Huawei, it is nothing new in collaborating with automotive companies, previously it has partnered with Seres Group and Chery to produce cars with the latest technology.