According to insiders, Huawei Technologies’ newly established intelligent car software and parts company will sell shares to investors, including Changan Automobile, with a valuation of up to 250 billion yuan (34.67 billion US dollars). Changan Automobile and its ultimate parent company, China South Industries Group Corporation（CSGS), are considering acquiring approximately 35% and 5% of the shares of this new company, respectively. The bids from these two companies may range from 200 billion to 250 billion yuan. And potential minority shareholders include FAW Group and Dongfeng Motor Group, which are also in deep negotiations with Huawei to acquire up to 5% of their respective shares.
Insiders also revealed that Huawei may remain the largest single shareholder with a shareholding ratio of 40% to 50% for at least the next two to three years. Of course, the details of the transaction, especially the equity split and valuation, have not yet been finalized.
On November 26th, Changan Automobile and Huawei signed an investment cooperation memorandum in Shenzhen. After negotiation, Huawei plans to establish a new company that focuses on the research and development, production, sales, and service of intelligent driving systems and incremental components for intelligent connected vehicles, which can be seen as an independent vehicle BU.
After the fermentation of this matter, it caused a shock in the automotive industry. Previously, the partners of Huawei’s Smart Selection model (currently HIMA, Harmony Intelligent Mobility Alliance) were all involved. There are reports that all four partners of Smart Selection have received invitations to join the new joint venture company. Currently, Smart Selection partners include SERES, CHERY, JAC, and BAIC. However, the aforementioned companies did not respond.