Aug 21, 2024 05:49 AM
BUSINESS
Huawei’s Smart Car Unit Valued $16 Billion After Investment From Avatr
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Huawei in January established Yinwang, which is dedicated to developing intelligent car systems and components, with a registered capital of 1 billion yuan
The valuation of Huawei Technologies Co. Ltd’s smart car unit has surged to 115 billion yuan ($16 billion) only seven months after its launch, following a recent investment.
Yinwang Intelligent Technology Co. Ltd., a wholly-owned subsidiary of Huawei founded in January, has agreed to sell a 10% stake to Avatr Technology Inc., an electric vehicle (EV) startup backed by China’s state-owned automaker Chongqing Changan Automobile Co. Ltd. (000625.SZ) and battery giant Contemporary Amperex Technology Co. Ltd. (CATL)
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- Huawei’s smart car unit, Yinwang Intelligent Technology, reached a valuation of 115 billion yuan ($16 billion) in seven months.
- Yinwang sold a 10% stake to Avatr Technology for 11.5 billion yuan, with phased payments dependent on certain conditions.
- The investment bolsters Avatr’s collaboration with Yinwang and its smart car solutions, enhancing Huawei's growing smart EV business amidst U.S. sanctions.
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Who’s Who
- Huawei Technologies Co. Ltd
- Huawei Technologies Co. Ltd. launched its smart car unit, Yinwang Intelligent Technology Co. Ltd., in January with a focus on developing intelligent car systems and components. Recently, Avatr Technology Inc. agreed to acquire a 10% stake in Yinwang for 11.5 billion yuan. This move aims to boost Huawei's smart EV business, aiding it to offset the impact of U.S. sanctions on other segments. Yinwang's valuation has since soared to 115 billion yuan.
- Yinwang Intelligent Technology Co. Ltd.
- Yinwang Intelligent Technology Co. Ltd. is a wholly-owned subsidiary of Huawei, dedicated to developing intelligent car systems and components. Founded in January with a registered capital of 1 billion yuan, its scope includes smart in-car equipment production, auto component development, AI-powered application system integration, and algorithm software development. It's part of Huawei's push to grow its smart EV business as a new revenue driver.
- Avatr Technology Inc.
- Avatr Technology Inc. is an electric vehicle startup backed by China’s state-owned automaker Chongqing Changan Automobile Co. Ltd. (41.4% ownership) and battery giant Contemporary Amperex Technology Co. Ltd. (CATL, 15.56% ownership). It has also received investment from the Chongqing municipal government and South Industry Assets Management Co. Ltd. Avatr partners with Huawei, equipping its vehicles with Huawei’s smart car solutions.
- Chongqing Changan Automobile Co. Ltd.
- Chongqing Changan Automobile Co. Ltd. (000625.SZ) is a state-owned automaker from China. It owns 41.4% of Avatr Technology Inc., an EV startup that has closely partnered with Huawei. Changan has signed a memorandum with Huawei to invest up to a 40% stake in Yinwang Intelligent Technology Co. Ltd., Huawei’s smart car unit. The company’s EV brands include Avatr and Deepal.
- Contemporary Amperex Technology Co. Ltd. (CATL)
- Contemporary Amperex Technology Co. Ltd. (CATL) is a major battery manufacturer participating in the electric vehicle sector. It owns 15.56% of Avatr Technology Inc., an EV startup backed by China’s state-owned automaker Chongqing Changan Automobile. CATL is involved with Avatr's initiatives to integrate Huawei’s smart car technologies.
- Seres Group Co. Ltd.
- Seres Group Co. Ltd. is a close partner of Huawei's EV business. In July, it announced plans to invest in Huawei's smart car unit, Yinwang Intelligent Technology Co. Ltd., but details such as the size of the investment have not been finalized yet. The company is based in Chongqing.
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What Happened When
- November 2023：
- Huawei unveiled plans to create Yinwang Intelligent Technology Co. Ltd. and said it will be open to investment from its auto partners and other carmakers.
- January 2024：
- Huawei founded Yinwang Intelligent Technology Co. Ltd.
- By July 2024：
- Seres Group Co. Ltd. announced plans to invest in Yinwang, with details yet to be finalized.
- 2024：
- Huawei Technologies Co. Ltd’s smart car unit's valuation surged to 115 billion yuan ($16 billion) following a recent investment.
- 2024：
- Yinwang Intelligent Technology Co. Ltd. agreed to sell a 10% stake to Avatr Technology Inc. for 11.5 billion yuan.
- 2024：
- Changan Auto signed a memorandum of cooperation with Huawei to invest in up to a 40% stake in Yinwang.
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