Avatr Plans to Acquire 10% Stake in Yinwang, Valuing Huawei’s Car BU at Over One Trillion Yuan
On August 19, Changan Automobile announced that its joint venture, Avatr Technology, plans to buy a 10% stake in Huawei’s subsidiary, Yinwang, for 11.5 billion yuan. After the deal, Avatr will hold a 10% share, while Huawei will retain 90% of Yinwang.
The valuation of Yinwang at approximately 1,150 billion yuan is seen as reasonable by analysts, given Huawei’s technology licensing and the surge of new energy vehicles in China.
The investment, which will be entirely financed by Avatr’s own funds, will be paid in three installments, each with its own set of conditions. After the initial payment, Huawei will begin transferring relevant technology and assets to Yinwang.
Despite Huawei Car BU’s chairman, Yu Chengdong, expressing confidence in turning losses into profits this year, Huawei still seeks to bring in more partners to invest in Yinwang. This move aims to alleviate financial pressures, expand cooperation, and assuage any concerns within the automotive industry.
Huawei’s goal, as per information from Changan Automobile and Huawei, is to establish an open platform for the automotive industry’s participation in electrification and intelligent vehicle development. This strategy sees the collaboration with Changan as a significant step, with plans to continue partnering with more car companies to explore new win-win models.
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