(Yicai Global) Feb. 22 -- Huawei Technologies’ executive director said the Chinese telecoms giant is not working with Anhui Jianghuai Automobile Group, better known as JAC Motors, to make cars after a contractor chosen to build a new energy vehicle industrial park said the pair are linking arms to produce smart electric vehicles.

Huawei is not directly involved in car making, but is partnered with JAC Motors as part of its Smart Selection business model, Richard Yu, who is also heads the Shenzhen-based firm’s intelligent automotive solution business unit, told Yicai Global yesterday.

JAC Motors also responded, saying the Hefei-based carmaker maintains its strategic tie-up with Huawei and there is no undisclosed information that should have been made public.

China State Construction Engineering Corporation said on Feb. 16 that a consortium led by a unit had won a CNY1.5 billion (USD224 million) engineering, procurement, and construction contract for a smart industry park for new energy vehicles in Feixi, a county in Anhui province. The Huawei-JAC project would include stamping, welding, painting, and final assembly of vehicles, it added. CSCEC later deleted the announcement from its website.

Reports last June, following Huawei's successful collaboration with electric carmaker Seres, said the company plans to tie up with different Chinese carmakers, including JAC Motors, to develop vehicles through its Smart Selection business model.

Huawei remains focused on the high-end market and will not engage with loss-making vehicles priced under CNY200,000 (USD29,015), Yu said. The firm is yet to profit or lose from its Smart Selection model, and its automotive segment will be profitable by 2025, he noted.

Through Smart Selection is Huawei offers carmakers its self-developed auto software and hardware and deep involvement in the design, manufacturing, marketing, and sales of vehicles.

Editors: Xu Wei, Martin Kadiev