Published: January 24, 2024 4:08 AM ET
Written by Tracy Koo
Shares in state-owned Dongfeng Motor Co. rose for the third day in a row, helped by a new partnership with Chinese telecoms giant Huawei.
The stock ended 6.1% higher on Wednesday, bringing the week’s gain to 20%. This puts Dongfeng on track for the month, in contrast to its overall negative start to the year.
Written by Tracy Koo
Shares in state-owned Dongfeng Motor Co. rose for the third day in a row, helped by a new partnership with Chinese telecoms giant Huawei.
The stock ended 6.1% higher on Wednesday, bringing the week’s gain to 20%. This has helped Dongfeng continue to perform well this month, in contrast to the overall negative start to the year for China’s stock market.
Wuhan-based Dongfeng, Stellantis’ Chinese manufacturing partner and one of China’s “big four” state-owned automakers, said its new energy vehicle division Voya will incorporate Huawei technology and components into its automakers. The stock price began rising on Monday after the company announced it had signed a deal. That vehicle.
Ping An Securities analysts Wang Ding and Wang Genghai said the partnership could be similar to Huawei’s partnership with Avatre Technology, an EV brand backed by battery maker CATL. They were positive about the partnership. In a research note, they describe the partnership as a “powerful alliance.”
Dongfeng’s Voyah brand delivered 50,552 units in 2023, about one-third of rival EV maker NIO’s deliveries. The plan is to double the amount delivered in 2024.
Huawei is looking to expand its exposure to China’s auto industry. In November, it announced a joint venture with state-run Changan to work on autonomous driving, digital platforms and other advanced vehicle systems.
According to research firm Canalys, China is one of the fastest growing EV markets in the world, with EV penetration expected to reach 40% of the country’s car market by 2024, with Chinese brands accounting for 78% of the total. It boasts a market share.
Email Tracy Qu at tracy.qu@wsj.com.