By Alex V 
With a stunning bid to establish itself at the top of China’s electric vehicle (EV) industry, the joint EV firm created by Huawei Technologies Co Ltd and Chery Automobile Co Ltd has launched a new investment of over 10 billion yuan ($1.39 billion). The new investment will go towards heavily building up its research and development efforts and optimizing the operations of the brand.
This bold move follows hot on the heels of intense competition within China’s surging EV industry, as both traditional carmakers and tech-focused startups rush to introduce wiser, more efficient electric cars onto the roads.
A Strategic Step Forward
In a statement posted through its official WeChat account, the Huawei-Chery EV joint venture stated the new investments will go toward reinforcing the brand’s leadership in technology. The investment will be preceded by a significant increase in the research and development (R&D) team — increasing it to 5,000 engineers and experts.
The company, which recently launched its Luxeed S7 electric sedan at Auto China 2024 in Beijing, seeks to become more entrenched in the EV value chain. The firms also announced setting up a new entity that will manage the manufacturing, sales, and services of its electric cars, enabling enhanced efficiency, quality checks, and an uninterrupted customer experience.
Luxeed S7: Flagship of Innovation
One of the first fruits of this partnership, the Luxeed S7, represents Huawei’s growing influence in the automotive sector. Co-developed with Chery, the sedan showcases Huawei’s cutting-edge software, autonomous driving technologies, and intelligent cockpit systems.
With the global automotive market rapidly shifting toward electrification, smart features, and sustainable innovation, the Huawei-Chery collaboration marks an important step in China’s efforts to dominate the future of mobility.
Why It Matters
Huawei’s pivot toward the EV market comes in response to U.S. sanctions that heavily restricted its smartphone and telecommunications businesses. With its technological expertise in 5G, chips, and AI, Huawei sees EVs as a natural extension of its capabilities. Partnering with Chery — one of China’s established automobile manufacturers — gives Huawei an immediate manufacturing footprint and access to automotive supply chains.
The new investment and corporate organisation also indicate the seriousness of their long-term aspirations. In contrast to much of the tech-auto partnership that targets software or in-car applications, Huawei and Chery are committing wholeheartedly to being a vertically integrated EV player from R&D to road-going cars.
FAQs About the Huawei-Chery EV Venture
What is the objective of the $1.4 billion investment by Huawei and Chery?
The investment is for increasing R&D activity, the recruitment of up to 5,000 engineers, and strengthening the brand’s technological supremacy in electric vehicles. It also helps in setting up a new integrated company for production, sales, and service.
Which vehicle models are being worked on under this joint venture?
The most prominent model so far is the Luxeed S7, a high-end electric sedan unveiled at the 2024 Beijing Auto Show. It integrates Huawei’s smart driving and cockpit technologies.
Why is Huawei entering the EV market?
Huawei is diversifying beyond its core telecommunications and smartphone business, which have been impacted by international sanctions. The EV market provides an opportunity to leverage its strengths in AI, software, and hardware integration.
How is Chery contributing to this partnership?
Chery brings its automobile manufacturing expertise, supply chain networks, and decades of experience in car production. This complements Huawei’s technological prowess, creating a strong foundation for innovation and scalability.
When will consumers see more vehicles from the Huawei-Chery brand?
Although no timeline was given, the level of investment and creation of a special company indicate that several models of vehicles are on the cards, and larger launches will be made in the coming 1–2 years.
As competition for EVs is heating up around the world, the Huawei-Chery partnership is going all-in on extensive R&D and vertical integration to define the future of smart mobility — not only in China, but globally.
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