Avatr completes $1.6 billion investment in Huawei's unit

Avatr, the NEV brand backed by Changan Automobile, has completed a total payment of 11.5 billion yuan ($1.6 billion) to Huawei for a 10 percent stake in the tech giant's smart car unit, marking a major step in deepening their collaboration.

Changan said in a filing late Thursday that Avatr has paid the final 3.45 billion yuan installment to Huawei after all preconditions for the third-phase transaction were met.

The payment completes Avatr's purchase of the stake in Yinwang, the Huawei subsidiary that develops smart-vehicle systems.

The partnership between Avatr and Huawei has become a model for cross-industry cooperation between automakers and information and communications technology firms.

The two sides began working together in 2019, combining Changan's vehicle engineering with Huawei's expertise in intelligent systems and digital platforms.

In September, Avatr unveiled its "Strategy 2.0", under which the collaboration with Huawei was further strengthened.

The companies now operate as a unified team across areas including user insight, product planning, launch, and marketing.

Employees of Huawei have also emerged as early adopters of Avatr vehicles, with more than 3,000 units delivered to staff so far.

Following the completion of the equity investment, the two partners are set to deepen their cooperation.

By 2030, Avatr and Huawei plan to jointly launch 17 models, covering sedans, SUVs and MPVs, with five upgraded models due in 2026.