HUAWEI Technologies Co. will move core technologies and resources in its smart car unit, which has chalked up robust sales for a number of new vehicles, to a new company jointly launched with automaker Chongqing Changan Automobile Co.

The new firm will engage in research and development, production, sales and service of intelligent automotive systems and component solutions, according to a memorandum of cooperation signed Sunday in Shenzhen.

“The new company will ... work with partners to promote innovation and leadership in smart car technology and promote the prosperity and development of the automotive industry,” Huawei said in a press release.

Changan said in a statement to the Shenzhen Stock Exchange on Sunday that it plans to take up to a 40% stake in the joint venture, with a deal slated for completion within six months, pending further talks.

Changan said that the venture will help it shift toward becoming a low-carbon, smart-transportation technology firm. The partnership plan will not significantly impact the company’s operating results this year, the statement said.

Yu Chengdong, chairman of Huawei’s smart car solutions unit, said Sunday at a signing ceremony in Shenzhen that the tech giant would work with more auto firms to “seize the opportunities of the electrification and intelligent transformation of the auto industry.”

Huawei has repeatedly said it does not make cars on its own but only helps other automakers make better vehicles.

It has an existing partnership with Changan as well as other companies, including Seres Group. Huawei and Seres jointly produce Aito branded cars, including the M7 model.

Huawei has also built the S7 sedan with domestic automaker Chery under a new marquee, Luxeed, that it intends to position as a competitor to Tesla’s Model S. (SD-Agencies)