Huawei Values Car Unit at $16 Billion in Stake Sale to Changan
Chinese technology giant Huawei has valued its automotive business unit at approximately RMB 115 billion ($16 billion) following a deal to sell a 10% stake to Changan Automobile for RMB 11.5 billion. The transaction involves Changan’s subsidiary, Avatr, acquiring the share in Shenzhen Yinwang Intelligent Technology Co., Ltd., also known as Newcool. This agreement marks a significant step in Huawei’s strategy to diversify ownership of its Intelligent Automotive Solution (IAS) business while retaining operational control. Although Changan initially considered acquiring up to a 40% stake, the final agreement reflects a smaller investment, causing Changan’s shares to drop by 4.3%. Huawei aims to deepen ties with multiple automakers through this structure, with early-stage talks reportedly ongoing with FAW and potential interest from Dongfeng Motor, BAIC, and JAC. Established in 2019 amid US semiconductor bans, Huawei’s car business focuses on providing technology rather than manufacturing vehicles directly. With successful models like the Aito M7 and M9, Huawei expects the unit to break even in 2024, recovering from previous losses. The move underscores Huawei’s commitment to collaborating with traditional automakers facing intense competition in the electric vehicle market.
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Huawei Values Car Unit at $16 Billion in Stake Sale to Changan
Chinese technology giant Huawei has valued its automotive business unit at approximately RMB 115 billion ($16 billion) following a deal to sell a 10% stake to Changan Automobile for RMB 11.5 billion. The transaction involves Changan’s subsidiary, Avatr, acquiring the share in Shenzhen Yinwang Intelligent Technology Co., Ltd., also known as Newcool. This agreement marks a significant step in Huawei’s strategy to diversify ownership of its Intelligent Automotive Solution (IAS) business while retaining operational control. Although Changan initially considered acquiring up to a 40% stake, the final agreement reflects a smaller investment, causing Changan’s shares to drop by 4.3%. Huawei aims to deepen ties with multiple automakers through this structure, with early-stage talks reportedly ongoing with FAW and potential interest from Dongfeng Motor, BAIC, and JAC. Established in 2019 amid US semiconductor bans, Huawei’s car business focuses on providing technology rather than manufacturing vehicles directly. With successful models like the Aito M7 and M9, Huawei expects the unit to break even in 2024, recovering from previous losses. The move underscores Huawei’s commitment to collaborating with traditional automakers facing intense competition in the electric vehicle market.
TechNode