GAC to establish a 205 million USD car brand with Huawei’s help

Chinese state-owned automaker GAC announced plans to establish a new company to build cars with Huawei. This subsidiary codenamed “GH Project” will have a registered capital of 1.5 billion yuan (204.6 million USD). The first model of the GAC-Huawei new brand is a new energy vehicle with a price tag of 300,000 yuan (40,920 USD).

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In November 2024, GAC and Huawei signed a cooperation agreement to create a new car brand. GAC officials called this cooperation format “Huawei Intelligence + GAC Manufacturing.” Previously, it was rumored that the new brand would become a part of the Huawei-backed Harmony Intelligent Mobility Alliance (HIMA), alongside Aito, Luxeed, Stelato, and Maextro. However, GAC officials highlighted that the cooperation model between two parties differs from the HIMA model.

On January 10, GAC issued an announcement stating that it plans to launch the new car brand codenamed GH Project. Its products will stand on a new architecture. GAC and Huawei will jointly work on product development, design, marketing strategy, ecological services, etc. According to GAC’s announcement, the GH Project would have a registered capital of 1.5 billion yuan (204.6 million USD).

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The first car under the GH Project will be a new energy vehicle with a price tag of around 300,000 yuan (40,920 USD). It will adopt the latest Huawei driving assistance and infotainment systems.

Interestingly, the GH Project is the second time GAC and Huawei have entered the cooperation. In 2021, GAC planned to launch a high-end brand with the Chinese IT giant. The crossover codenamed AH8 should have become the first product of this partnership. But in 2023 GAC announced that the AH8 model will switch to in-house developed tech instead of utilizing Huawei’s solutions. This model was recently released as the Hyptec HL full-size SUV.

GH Project is often referred to as GAC’s fourth car brand after Trumpchi, Aion, and Hyptec. However, GAC Group also has shares in the troubled Hycan brand, which is a former joint venture between GAC and Nio. In November, CarNewsChina reported that Hycan had laid off all employees in the Shanghai branch and defaulted on compensation for them. Currently, GAC Aion holds 20.54% of Hycan, GAC Group controls 4.46%, and Zhujianf Investment Management holds 68.56% of the shares.