SAIC announces partnership with Huawei to build smart electric vehicles
SAIC partners with Huawei to build smart electric vehicles
SAIC Motor, a state-owned Chinese automaker, announced a partnership with Huawei on Friday to develop smart electric vehicles.
This alliance, forged amid SAIC’s steep sales declines, highlights two critical points: the automaker’s urgent need to innovate and Huawei’s rising dominance as a linchpin for China’s EV industry, reports Reuters.
A Lifeline Amid Declining Sales
SAIC’s move comes after a punishing 2024, when overall vehicle sales dropped 20% due to fierce competition and a price war in China, the world’s largest auto market. The company’s joint ventures bore the brunt: SAIC-GM saw a staggering 56.5% sales plunge, while SAIC-Volkswagen recorded a 5.5% decline.
Exports, a potential bright spot, fell 14%, hampered by the European Union’s imposition of a 35.3% tariff—the steepest levied on any Chinese automaker. Against this backdrop, SAIC’s partnership with Huawei aims to integrate advanced technologies into its offerings.
The deal, signed on February 21, 2025, spans manufacturing, supply chain management, and sales services, though details about the new EV lineup remain under wraps. SAIC framed the collaboration as a step to “promote China’s automotive industry to a new level in the intelligent era.”
Huawei’s Growing Influence
Huawei, already a key supplier of smart driving systems, has proven its value in similar tie-ups. Its partnership with Changan and CATL produced Avatr EVs, whose sales doubled in 2024, while Dongfeng-backed Seres tripled Aito-brand sales with Huawei’s tech and showroom network. BAIC and Huawei also launched the Stelato EV in August.
For SAIC, tapping Huawei’s expertise could mirror these successes, blending the automaker’s manufacturing prowess with cutting-edge driver assistance systems.
Looking ahead, the partnership’s success hinges on whether SAIC can leverage Huawei’s innovations to reclaim market share and navigate trade barriers. Industry watchers will monitor whether this alliance sparks a broader resurgence for SAIC—or reshapes the global EV hierarchy.
Additionally, Honda Motor is open to resuming merger negotiations with Nissan Motor—potentially forming the world’s fourth-largest automaker—but only if Nissan CEO Makoto Uchida steps down.
