Main auto partner Chongqing Changan Automobile (000625.SZ) and relevant parties will own up to 40% of the new firm, a Changan Auto statement showed on Sunday.
Neither Changan Auto nor Huawei disclosed financial details.
Changan Auto referred Reuters to its Sunday statement and declined to comment further.
Huawei has partnerships with other auto companies, including Seres Group (601127.SS) and Jianghuai Automobile (600418.SS), as well as with Changan Auto involving EV brands Avatr and Deepal.
The proposed deal will also smooth the way for the business' listing, as Huawei had planned, said two of the people.
Persons:
Ren Zhengfei, Ren, Richard Yu, Julie Zhu, Zhuzhu Cui, David Kirton, Brenda Goh, Christopher Cushing
Organizations:
Huawei Technologies, Changan Auto, Bosch, Chongqing Changan Automobile, Huawei, Auto, China Ordnance Equipment Group, China South Industries, FAW Group, Dongfeng Motor, HK, Reuters, Seres, Jianghuai, Changan, EV, Thomson
Locations:
HONG KONG, SHANGHAI, Chongqing, China, Changan, Shanghai