(Yicai) Feb. 17 -- Chinese carmaker SAIC Motor and Huawei Technologies are teaming up to develop a new electric vehicle brand called Shangjie, which will be the fifth and most affordable EV marque to use the tech giant's Harmony operating system, Yicai learned from multiple sources.

The project is led by Zhu Yong, deputy general manager of SAIC Passenger Vehicle, the sources said, adding that all of the new brand’s models will be distributed through the Harmony Intelligent Mobility Alliance, an auto grouping launched by Shenzhen-based Huawei in November 2023.

So far, HIMA has spawned four vehicle brands: Aito with Seres Group, Luxeed with Chery Automobile, Stelato with BAIC BluePark Energy Technology, and Maextro with JAC Motors. They are priced between CNY230,000 and CNY1 million (USD31,707 and USD137,855). 

Shanghai-based SAIC told Yicai today that it has no official comment to make on the reported collaboration at the present time.

The first Shangjie model will be based on SAIC's Roewe brand, the sources said. Codenamed the ES39, its two pure electric versions will use Huawei's cockpit and intelligent driving systems. The car is expected to be launched in the fourth quarter of this year, with a price range of CNY150,000 to CNY250,000 (USD20,678 to USD34,464), making it the most affordable HIMA model to date.

The pair is already talking about the second Shangjie model, the sources added. Huawei has stationed an engineering team at SAIC's research and development center to focus on the development of smart driving and cockpit systems.

Rumors of a potential tie-up between SAIC and Huawei first emerged last November. In January, corporate information platform Tianyancha showed that SAIC had filed multiple trademark applications for names such as 'Shangjie' and ‘SAIC Shangjie.’

Industry insiders said the partnership will boost the competitiveness of SAIC's products amid declining sales and profits. For Huawei, the new brand fills a gap in HIMA's product lineup for mainstream models priced below CNY200,000.

In the big scheme of things, this means that Huawei's driving software will cover both budget and premium models priced from under CNY200,000 to over CNY1 million. 

Editor: Emmi Laine