JAC and Huawei to produce an electric MPV to compete with Rolls Royce

XiangΒ Xingchu, Chairman of JAC, has said the first car from the new brand developed between JAC and Huawei is planned to roll off the assembly line by the end of the year and will be launched in the first half of 2025. Speaking at the China Auto Forum, which runs July 11-13, Xiang mentioned that the car has now entered the vehicle verification stage.

The first model in the new brand between JAC and Huawei is codenamed X6 and is an MPV. Huawei works with several Chinese auto producers to varying degrees. The company has three basic business models. Cooperation with JAC is based on the all-encompassing HIMA (Harmony Intelligent Mobility Alliance) level where Huawei not only provides an intelligent cockpit and intelligent driving solution but is also involved with elements including the design, production, sales, after-sales and other stages of the vehicle but stops short of actually producing the car.

XiangΒ Xingchu, chairman of JAC, speaking at the 2024 China Auto Forum.

This business model is the same as with Seres for the Aito brand, Chery for Luxeed, and BAIC for Stelato. The as yet unnamed brand with JAC is being positioned as ultra high-end and will be priced at around a million yuan (138,000 USD). The new EV will plug the perceived gap in China’s ultra-luxury smart electric vehicle market. Richard Yu (Yu Chengdong), chairman of Huawei’s smart car unit, has said that the benchmarking will far exceed the level of Maybach and the Rolls Royce Phantom.

Currently, the first model has entered the software and hardware verification stage. Under the cooperation agreement, JAC is responsible for the overall product development of the joint models and for building a production base to achieve the delivery of them. Xiang revealed that the JAC smart factory that will be used for the production is basically complete.

The new smart factory integrates digital R&D, green and low-carbon manufacturing, brand experience services and other functions. It can support an annual output of 200,000 vehicles and it will be used in the future to produce other new models in cooperation with Huawei.

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In the first half of this year JAC’s R&D investment increased by 64% year-on-year and accounted for 7.6% of revenue, with the investment expected to increase in future years to about 9%.

JAC Motors signed a smart new energy vehicle cooperation agreement with Huawei on December 1,Β 2023, which is valid for 10 years from the date of signing. Under the agreement, JAC is responsible for the product development of the models jointly operated by the two parties and for providing a production base. Huawei on the other hand provides the sales service worldwide and is also responsible for the ecosystem and marketing.

JAC is probably best known as the former manufacturing partner of Nio. The company is also successful in the commercial vehicle market but less so when it comes to passenger vehicles. JAC also has a joint venture with Volkswagen. However, Volkswagen now has 75% ownership and due to a shareholding in JAC Motors’ parent group (JAG) effectively has an even higher share.

Sources: Autohome, Fast Technology

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