Chinese automaker SAIC Motor and tech giant Huawei have launched a new EV brand called Shangjie.

The first model is set to debut in autumn 2025, which is around April to June, according to Richard Yu, chairman of Huawei’s consumer business.

The collaboration covers styling design, intelligent cockpit tech, smart driving solutions, manufacturing, and sales and service.

SAIC said the joint venture will have a team of over 5,000 members focused on operations and technology.

🔗 Source: Reuters

🧠 Food for thought

1️⃣ Shifting competitive dynamics are forcing traditional automakers into tech partnerships

SAIC’s partnership with Huawei comes at a critical moment when China’s automotive hierarchy has dramatically shifted, with BYD overtaking SAIC as China’s top automaker in 20241.

This collaboration follows SAIC’s staggering 93% drop in net profit in 2024, highlighting the financial pressures forcing this strategic pivot2.

The Shangjie brand represents SAIC’s response to a transformed market where automakers increasingly require technology partnerships to remain competitive, evidenced by BYD’s commanding 31.4% market share in 2024 with 3.52 million deliveries1.

This signals a fundamental shift in SAIC’s approach, from previously maintaining independence to now embracing collaboration with tech giants as a survival strategy in China’s rapidly evolving auto landscape3.

Traditional automakers across China are forming similar alliances with tech companies to enhance their offerings against agile, tech-integrated competitors4.

2️⃣ Huawei’s expanding automotive influence creates proven revival formula

Huawei has systematically built influence in China’s auto sector by establishing its Harmony Intelligent Mobility Alliance, with Shangjie becoming the fifth brand in this network5.

The tech giant’s partnership model has demonstrated remarkable success in revitalizing struggling automakers, as evidenced by Seres reporting a net profit of 1.63 billion yuan after collaborating with Huawei3.

Huawei’s automotive strategy focuses on providing advanced cockpit and intelligent driving technologies rather than manufacturing vehicles themselves, creating a scalable partnership model that addresses automakers’ technology gaps6.

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