This partnership marks another move by a state-owned automaker to collaborate with Huawei, which has become a key player in smart driving technology, aiming to enhance EV sales.
SAIC stated that this strategic alliance will capitalize on the strengths of both companies and elevate China's automotive sector into a new era of intelligence.
The agreement, finalized on Friday, outlines a strategic collaboration in areas like manufacturing, supply chain management, and sales services, although SAIC did not disclose the specific models they plan to develop together.
Last year, SAIC faced a 20% drop in overall vehicle sales due to fierce competition and a tough price war in the largest auto market in the world.
Sales from its partnership with Volkswagen fell by 5.5%, while the SAIC-GM venture saw a staggering 56.5% decline.
Additionally, SAIC was impacted by the EU's hefty extra tariffs of 35.3%, leading to a 14% decrease in overseas shipments in 2024.
This new deal adds to Huawei's growing list of collaborations with state-owned automakers, including Changan, Dongfeng, and BAIC Motor.
In 2022, Changan formed a joint venture with Huawei and battery manufacturer CATL to produce Avatr EVs, which saw their sales more than double in 2024 compared to the previous year.
Dongfeng's Seres brand also experienced a significant boost, tripling its annual sales of Aito-branded vehicles in 2024, with the top-selling models featuring Huawei's advanced driver assistance systems available in the tech company's showrooms across the country.
Huawei and BAIC introduced their first electric vehicle under the joint brand Stelato in August.