SAIC Motor Corporation has signed a strategic cooperation agreement with Huawei in Shanghai on February 21, marking a significant step in their collaboration. The partnership will span product development, manufacturing, supply chain management, and sales services, with the aim of launching a new line of smart new energy vehicles.

Rumors of an expanded collaboration between SAIC and Huawei have circulated since late 2023. SAIC has applied for several trademarks under the “Jie” series in January. The naming strategy aligns with Huawei’s Harmony Intelligent Mobility Alliance (HIMA), which includes brands like AITO (Wenjie), Luxeed (Zhijie), and Stelato (Xiangjie), suggesting SAIC’s potential alignment with Huawei’s ecosystem.

The strategic cooperation comes as SAIC faces mounting challenges. Once China’s leading automaker for 18 years, it was overtaken by BYD in 2023 after its sales fell 20% year-on-year to 4.01 million units. The company has also warned of an 87%-90% profit decline in 2024 due to weakening fuel car sales and price competition.

Meanwhile, Huawei’s HIMA brands have gained momentum, with over 440,000 deliveries in 2024. The AITO M9, a standout performer, has secured over 200,000 orders since its launch. The evolving partnership between SAIC and Huawei could play a crucial role in SAIC’s push to regain market competitiveness in the electric and smart vehicle sectors.