On February 11, 2025, SAIC Motor Corporation (600104.SH) experienced a significant surge in its stock price, rising by over 8% at one point during the afternoon session before settling at a 4.57% increase by the end of tradingThis uptick brought the company's total market capitalization to an impressive 220 billion yuanThe catalyst for this sudden interest appears to be renewed speculation surrounding a collaboration between SAIC and Huawei, two giants in their respective industries.

Recent media reports have indicated that SAIC and Huawei are moving forward with a partnership that will utilize Huawei’s "Smart Selection Car" modelFrom the trademarks registered by SAIC, it seems the new brand will be tentatively named “Shangjie.” This partnership is not entirely new; discussions regarding collaboration between the two companies have circulated for some time, and both parties have previously filed for trademarks related to "Shangjie."

Earlier this year, the National Intellectual Property Administration's trademark database revealed that SAIC had submitted multiple applications for trademarks such as “Shangjie” and “SAIC Shangjie.” These applications span a broad spectrum of areas, including automotive finance and maintenance, indicating SAIC's comprehensive strategy for its new brandNotably, in November 2023, Huawei had already filed for two "Shangjie" trademarks, one of which related to transportation and has since been registered, while the other is still under preliminary examinationThis coordinated effort suggests a strong alignment in brand development strategy between SAIC and Huawei.

Looking back to November 2024, rumors began to circulate that SAIC was in advanced discussions with Huawei regarding a significant collaborationThis initiative was reportedly led by SAIC's president, Jia Jianxu, which underscores the importance SAIC places on this partnershipAt that time, speculation arose that the collaboration could introduce a new model beyond Huawei's existing partnerships with automotive manufacturers, which typically fall into three categories: supplier, HI (Huawei Inside), and the Smart Selection Car model

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There was even talk of a potential strategic investment by SAIC in Huawei's subsidiary, YingwangWhen approached for confirmation by a reporter posing as an investor, SAIC declined to comment, adding a layer of intrigue to the partnership and capturing market attention.

In the realm of automotive intelligence, Huawei’s collaborations with car manufacturers can be categorized into three primary modelsIn the supplier model, Huawei provides various automotive components and technological solutionsThe HI model allows Huawei to engage deeply in the design and development of smart features, offering comprehensive solutions for intelligent driving and smart cabinsThe Smart Selection Car model, also known as the Hongmeng Smart Driving model, enables Huawei not only to provide technical support but also to participate extensively in product definition and sales channels, creating a holistic partnership with car manufacturersCurrently, Huawei’s Hongmeng Smart Driving has successfully launched multiple brands, including Wenjie, Zhijie, Xiangjie, and Zunjie, demonstrating significant market success and accumulating valuable experience in collaboration.

In January 2024, Yingwang was officially established as a wholly-owned subsidiary of Huawei, focusing on advanced areas such as intelligent driving solutions, smart cabins, and digital platforms for smart vehiclesThis strategic move aims to solidify Huawei's position at the forefront of automotive intelligence developmentBy March 2024, Yingwang began establishing subsidiaries in major cities like Shanghai, Hangzhou, Dongguan, Nanjing, and Suzhou, further enhancing its industrial footprint and influence within the domestic market.

Currently, two companies, Seres and Avita, have confirmed their investments in Yingwang, serving as key partners under Huawei's Smart Selection Car and HI modelsThrough its collaboration with Huawei, Seres has developed the Wenjie series, achieving notable success in the electric vehicle market

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Meanwhile, Avita has leveraged Huawei's HI model to make technological breakthroughs in intelligent drivingFurthermore, Chery announced in mid-November 2024 that it would also invest in Yingwang, a clear indication that numerous automotive companies recognize Yingwang's technical capabilities and market potential in the field of automotive intelligenceThis trend reflects a broader industry movement towards accelerated intelligent development through capital cooperation.

The potential collaboration between SAIC and Huawei, along with the possibility of SAIC investing in Yingwang, is poised to inject new energy into the development of automotive intelligenceSuch a partnership could significantly alter the competitive landscape of the automotive market, particularly as the industry grapples with the rapid evolution of smart technologies.

As the automotive sector increasingly embraces intelligent features and connectivity, collaborations like the one between SAIC and Huawei could lead to innovations that redefine consumer expectations and reshape the entire industryThe integration of Huawei's technology with SAIC’s manufacturing capabilities could result in vehicles that offer enhanced safety, smarter navigation, and improved user experiences, catering to the demands of a tech-savvy consumer base.

This partnership also raises questions about the broader implications for the automotive market in China and beyondAs traditional automotive manufacturers seek to adapt to the shift towards electric and intelligent vehicles, collaborations with tech companies like Huawei represent a strategic move to remain competitiveThe fusion of automotive expertise with cutting-edge technology could pave the way for new business models and product offerings, such as subscription services for in-car features or enhanced connectivity options.

In conclusion, the developments surrounding SAIC's potential collaboration with Huawei highlight a significant trend in the automotive industry, where traditional manufacturers increasingly rely on technology partners to drive innovation

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