Huawei to Spin off Smart Car Business Unit to Yinwang by Jan. 1

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Consumers browse a Huawei-powered Luxeed S7 electric car at its flagship store in Shanghai on Nov. 3, 2024.

The tech giant Huawei Technologies Co. Ltd. is to complete the spinoff of its intelligent automotive business unit to become an independent company, Shenzhen Yinwang Intelligent Technology Co. Ltd., by Jan. 1.

Huawei’s aim is to solidify its position as a leading smart vehicle supplier amid industry challenges and expanding partnerships.

Founded in 2019, Huawei’s car business unit originally said it would not make cars itself, but focus on supplying automotive components, particularly autonomous driving systems, through its Huawei Inside (HI) model. Under this, Huawei supplies the software and hardware with its smart cockpit to car manufacturers but plays no role in the design, development or marketing of the vehicles.

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Huawei's intelligent automotive business unit will spin off as Shenzhen Yinwang Intelligent Technology Co. Ltd. by January 1, 2024, with investments from companies like Changan's Avatr and Seres units.
The spinoff aims to solidify Huawei's role in smart vehicle supply, expanding partnerships through models like Huawei Inside (HI) and Harmony Intelligent Mobility Alliance (HIMA).
Yinwang posted a net profit of 22.3 billion yuan in H1 2024, with Huawei emphasizing its commitment not to make cars, supporting Yinwang's evolution into a multi-shareholder entity.

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Who’s Who

Huawei Technologies Co. Ltd.: Huawei Technologies Co. Ltd. is completing a spinoff of its intelligent automotive unit into an independent company, Shenzhen Yinwang Intelligent Technology Co. Ltd., by Jan. 1. Huawei's strategy includes partnerships under the Harmony Intelligent Mobility Alliance, despite industry challenges, to strengthen its position in smart vehicles. The move is partly due to past sanctions on its smartphone business. Huawei remains committed to not making its own cars and aims for Yinwang to grow with multiple shareholders.

Shenzhen Yinwang Intelligent Technology Co. Ltd.: Shenzhen Yinwang Intelligent Technology Co. Ltd. is an independent company spun off from Huawei's intelligent automotive business. Registered in January, it has received investments from automakers like Changan's Avatr and Seres units, each holding a 10% stake. Despite initial losses, Yinwang posted a net profit of 22.3 billion yuan in the first half of 2024. Huawei's intent is to maintain its commitment to not building cars directly and to grow Yinwang into a multi-shareholder company.

Changan Automobile Co. Ltd.: Changan Automobile Co. Ltd.'s Avatr and Seres units are part of the Harmony Intelligent Mobility Alliance (HIMA) with Huawei. They have invested 11.5 billion yuan ($1.58 billion) each for 10% stakes in Huawei's spinoff company, Yinwang Intelligent Technology.

Chery Automobile Co. Ltd.: Chery Automobile Co. Ltd. is considering investing in Yinwang Intelligent Technology, the new independent company formed from Huawei's spinoff of its intelligent automotive business unit. The company is among several other automakers evaluating potential investments, aligning with Huawei's strategy to expand partnerships in the automotive industry.

JAC Motors: JAC Motors is considering investing in Yinwang Intelligent Technology, a spinoff from Huawei's car business unit. The company is also partnering with Huawei to develop the Maextro S800 luxury sedan, which will feature Huawei's next-generation intelligent chassis.

GAC Group: GAC Group is partnering with Huawei to launch a new brand. This collaboration signifies Huawei's expanding presence in the automotive industry, as it seeks to enhance vehicle technology and develop new models.

SAIC Motor Corp. Ltd.: SAIC Motor Corp. Ltd. is mentioned as a potential partner for Huawei's growing automotive business. While specific details about SAIC's involvement are not provided, the article highlights Huawei's strategy of expanding partnerships with various automakers, including the prospect of collaborating with SAIC, to strengthen its position in the smart vehicle industry.

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What Happened When

2019：: Huawei's car business unit was founded. The unit focused on supplying automotive components, particularly autonomous driving systems, through the Huawei Inside (HI) model.

Beginning in August 2020：: Huawei's smartphone business was affected by several rounds of U.S. sanctions.

November 2023：: Huawei rebranded its Smart Selection partnership as Harmony Intelligent Mobility Alliance (HIMA).

January 2024：: Huawei registered a new wholly owned subsidiary, Yinwang Intelligent Technology, transferring personnel and assets into the new company.

By Jan. 1, 2024：: Huawei is to complete the spinoff of its intelligent automotive business unit to become Shenzhen Yinwang Intelligent Technology Co. Ltd.