What will the deep "bundling" with Huawei bring to Changan Automobile?

  Our reporter Feng Yuyao

  The news that Changan Automobile and Huawei jointly set up a new company has aroused widespread concern. On November 27th, the share price of Changan Automobile went up by a daily limit, which led dongan power, Hunan Tianyan and other "Changan Department" stocks to win a word board.

  On the same day, the Securities Daily reporter called the Securities Department of Changan Automobile, and the relevant staff of the company revealed to the reporter: "At present, the specific cooperation between the company and Huawei is still under negotiation, and the signing of the transaction documents is expected to be completed within 6 months."

  "After the transaction documents are signed, it will not affect the company’s business independence." The above-mentioned staff said that the new company established with Huawei this time is expected to deeply empower Aouita, Deep Blue Auto and Changan Qiyuan under the company in the future.

  Further deepen cooperation with Huawei

  Specifically, the cooperation between the two parties is as follows: Huawei, as the company of Party A, establishes a new company, whose business scope includes intelligent driving solutions for automobiles, intelligent cockpit, intelligent digital platform for automobiles, intelligent Che Yun, AR-HUD and intelligent lights, etc., and injects relevant technologies, assets and personnel dedicated to the business scope of the new company into the new company. The specific business scope and loading scheme are determined in the final transaction document. As Party B, Changan Automobile and its related parties intend to contribute to acquire the equity of the new company, with the proportion not exceeding 40%. The specific equity ratio, contribution amount and term shall be discussed separately by both parties.

  In addition, the new company will operate independently based on the principle of marketization, and adopt a market-oriented management system and salary incentive framework. Changan Automobile and Huawei are committed to long-term cooperation and strategic coordination with the new company. In principle, the components and solutions within the business scope are provided by the new company for vehicle customers.

  In the future, the new company will gradually open its equity to investors such as existing strategic partners, car companies and car companies with strategic value, and become a company with diversified equity. Regarding the time for opening the equity, the above-mentioned staff told reporters: "The specific time is still uncertain."

  Wang Peng, an associate researcher at the Beijing Academy of Social Sciences, told the Securities Daily reporter: "The cooperation between Huawei and Changan Automobile will bring strong technology alliance and market resource sharing, which is expected to promote the rapid development of smart cars and will have a positive impact on the automobile market."

  Accelerate the competition for new energy sources

  The establishment of a new company with Huawei is also a microcosm of Changan Automobile’s competition for the new energy track.

  In 2017, Changan Automobile launched the "Third Entrepreneurship–Innovation and Entrepreneurship Plan", which blew the horn of the transformation to a smart low-carbon travel technology company. In the same year, the company released the "Shangri-La" plan to accelerate the pace of new energy transformation in an all-round way. Today, Changan Automobile has reached a critical stage of transformation.

  Data show that in the first three quarters of this year, Changan Automobile’s revenue and net profit were 108.206 billion yuan and 9.882 billion yuan respectively, up by 26.78% and 43.22% respectively. In terms of production and sales, this year Changan Automobile set an annual target of producing and selling 2.53 million vehicles, up 7.8% year-on-year. Among them, new energy vehicles achieved the sales target of 400,000 vehicles. According to the latest data, from January to October this year, the cumulative sales volume of Changan’s own brand new energy vehicles was 364,000, an increase of 88.76% year-on-year.

  Since November, Changan Automobile has frequently pressed the "acceleration button" in the development of new energy business. Not long ago, Changan Automobile released the self-developed battery brand Changan "Golden Bell Cover" at the Guangzhou Auto Show. It plans to launch eight self-developed batteries, including liquid, semi-solid and solid, by 2030, forming a battery capacity of not less than 150GWh. On November 21, Changan Automobile signed a cooperation agreement with Weilai Automobile on battery replacement business, and plans to cooperate in promoting the establishment of battery replacement standards, the construction and sharing of battery replacement networks, and the research and development of battery replacement models.

  The above-mentioned Changan Automobile staff told the reporter: "Since the’ Shangri-La’ plan was put forward, the company’s new energy business has accelerated, and a series of measures introduced this year are intended to accelerate the penetration rate of the new energy market."

  According to the plan, by 2030, Changan Automobile will strive to achieve group sales of 5 million vehicles, of which 4 million vehicles are sold by Changan brand, new energy vehicles account for more than 60%, and overseas sales account for 30%.

  According to Zhang Xinyuan, the research director of the domestic consultancy Co-Found think tank, Changan Automobile has made frequent moves in the layout of new energy this year, which shows that the company has a clear plan for the future. "The newly established company will further promote the technology research and development and product upgrade of Changan Automobile in the field of intelligence, and enhance the core competitiveness of the enterprise. At the same time, the new company will also help Changan Automobile accelerate the realization of strategic goals related to new energy vehicles and increase market share. "