(Yicai) July 29 -- Seres Group’s shares climbed after the car production partner of Huawei Technologies said it plans to invest in the Chinese tech giant's intelligent driving subsidiary, following a similar commitment by Changan Automobile.

Seres [SHA: 601127] closed 5.3 percent higher at CNY77.96 (USD10.75) a share in Shanghai today, after soaring by as much as 6.6 percent in the morning trading session.

Seres announced yesterday that it has entered talks with Yinwang Intelligent Technology and its shareholders. The carmaker hopes the investment will help support the unit, set up in Shenzhen early this year, to become an open platform serving the auto industry and develop into a world leader in the intelligent driving system and components industry.

The deal’s size, how it will be financed, and other details have yet to be finalized, Seres said, adding that Yinwang will become a unit after the transaction, but will not alter the scope of its consolidated financial statements.

Formed by Shenzhen-based Huawei in January, Yinwang focuses on providing intelligent driving solutions and making smart auto cockpits, controls, cloud platforms, lighting systems, and vehicle-mounted equipment.

Leading Chinese car firm Changan Automobile inked a deal with Huawei last November to invest in Yinwang. The final agreement will be signed by Aug. 31, Changan Auto noted in May.

“China needs to create an electric and intelligent open platform that is jointly participated in by the auto industry and has a new technology development leader," Richard Yu, chairman of Huawei’s auto business unit, said after the initial deal with Changan Auto was penned.

“We'll also work with more strategic partners in the car-making field to continuously explore new models to achieve openness and win-win results and jointly seize opportunities from the electric and intelligent transformation of the auto industry,” he noted.

Huawei has become a leader in developing smart car technologies and has said time and again that it will provide intelligent connected auto tech to its vehicle production partners rather than making them itself, while helping the automakers to make and sell high-quality products.

Editor: Martin Kadiev