GAC's BEV Sub-Brand With Huawei Could Bolster European ExpansionGAC's BEV Sub-Brand With Huawei Could Bolster European Expansion

Chinese state-owned automaker GAC is embarking on a tie-up with telecoms giant Huawei to create a new sub-brand that could be part of its sales offensive in Europe.

The automaker, who told WardsAuto at the Paris Motor Show 2024 in October that tariffs won’t stop its expansion plans into European markets, is setting up the sub-brand dubbed ‘GH’ with a registered capital of RMB 1.5 billion ($200 million), according to a stock exchange announcement, auto website CnEVPost reports.

The two companies will work jointly on designing and developing vehicles, based on new architecture and technologies, and launch a series of intelligent models, according to the announcement.

A post on social media site WeChat by GAC confirms the companies are currently working together to work on a series of products with its first vehicle targeting the RMB 300,000 ($41,000) premium market which means it could sit below the GAC Aion V luxury compact SUV to be sold in Europe.

The automaker had planned a similar joint venture with Huawei to develop a Level 4 autonomous vehicle in 2021 but the plan was later shelved.