Huawei, a manufacturer well known for its smartphones and portable electronic devices, is teaming up with the GAC Group to develop a smart SUV. While this will be the first jointly developed product, the two companies already have had a strategic cooperation agreement signed in 2017. This is for working together in the fields of intelligent connected electric vehicle technology.
Additionally, in September 2020, the two companies signed an agreement to further deepen cooperation, with a focus on computing and communication architecture in accordance with the development trend towards software-heavy vehicles.
This latest strategic cooperation will see a new generation of intelligent vehicles (likely to be up to 8 models) and digital platforms. The smart SUV, to enter the market by the end of 2023, and multiple other future models will utilize GAC’s GEP.30 chassis platform and Huawei’s CCA (Computing and Communication Architecture), as well as carrying Huawei’s full stack of intelligent vehicle solutions.
Initial development has commenced on the model which will be a medium to large fully electric SUV. The company says it will be ‘futuristic, powerful and efficient, with Level 4 autonomous capability’. The new model will be part of GAC’s entirely electrified line-up of vehicles by 2025.
Over the last few years, GAC has been successful in its vehicle electrification program as well as various areas of new energy technology, essential for the market in China. The GAC Group has established R&D centres around the world and has allocated billions of yuan in funding.
The joint venture between GAC and Huawei is timely as the global market for electric vehicles is growing. Data predicts that the EV global market will expand almost 5 times between 2016 and 2027, an annual increase of 20%.
The GAC Group has a history going back to 1955 but it only began to develop rapidly from the 1990s, as with most of the domestic carmakers in China. It produces passenger as well as commercial vehicles, most of which are adapted from models of foreign partners such as Honda, Fiat, Isuzu, Mitsubishi and Toyota/Hino.