AVATR Acquires 10% Stake in Huawei's Car BU for RMB 11.5 Billion

Chongqing - On August 20, Huawei and Changan Automobile signed a strategic deal in Chongqing. AVATR Technology became the second-largest shareholder of Huawei’s subsidiary, Yinwang Intelligent Technology Co., Ltd., with a 10% stake of RMB 11.5 billion (USD 1.61 billion).

After the transaction, AVATR holds 10% of Yinwang, with Huawei retaining 90%. This makes AVATR the second-largest shareholder and the first automaker to officially join the company. The Yinwang board will consist of seven members, with Huawei nominating six directors and AVATR one.

AVATR stated they will sign a detailed strategic agreement with Yinwang covering joint marketing, product design, access to core technologies, smart experience co-creation, preferential pricing, user experience, component supply, and shared development of smart applications and vehicle platforms.

At the signing ceremony, Zhu Huarong, Chairman of Changan Automobile, said AVATR's investment in Yinwang reflects Changan's high-end strategy and aims to showcase AVATR as a leading example of an "open platform for automotive industry collaboration."

Xu Zhijun, Huawei's rotating chairman, noted that AVATR's investment is key to establishing Yinwang as a smart, open platform for the automotive industry. Yinwang will offer equity to strategic partners and operate on market principles, ensuring fairness, openness, and mutual benefit.

Yinwang was established in January 2024 as a wholly-owned subsidiary of Huawei. The company’s main assets are Huawei’s Intelligent Automotive Solutions Business Unit (Car BU) and optical products line. 

Previous reports indicated that Huawei collaborates with automakers by providing standardized components such as motors and electronic controls or partnering on technical upgrades for intelligent driving and cockpits.

AVATR production line at the Changan Automobile factory in the Jiangbei District, Chongqing. (Photo/ Li Qianlei)

AVATR is a high-end smart electric vehicle brand jointly invested in by Changan Automobile, CATL, and other parties. Currently, it offers two main models: AVATR 11 and 12. As AVATR's largest shareholder, Changan Automobile sees the brand as key to its strategy for entering the high-end market.

Twelve months ago, Changan Automobile announced it had become the first automaker to join Yinwang. Changan Automobile confirmed that AVATR's purchase of Yinwang's shares is a significant milestone in the company's involvement with Yinwang.