Avatr is now second-largest shareholder in Huawei Newcool firm

Avatr Technology has now become the second-largest shareholder of the Huawei Newcool firm. Both parties today signed a cooperation agreement. Under this policy, the Chinese tech giants will work on developing the most powerful EVs in the world.

Powered by Changan Automobiles, Avatr brand came into the real world in 2018. It focuses on modern and advanced electric vehicles. It has built a variety of smart cars using Huawei driving solutions for an efficient as well as safer driving experience.

Earlier, a report said that Avatr has been planning to purchase 10% of the stakes worth $1.6 billion in Huawei’s Newcool automobile unit. The other 90% stake would have belonged to Huawei. Now the plan is official via a cooperation agreement.

With this agreement, Avatr is the second-largest shareholder of the Huawei Newcool unit. For reference, the Newcool automobile firm is a joint venture of Huawei and Changan Automobile. The unit will include smart car systems, cockpits, work on digital features, car cloud networks, smart car lights, and other technologies.

Avatr is now the second-largest shareholder in Huawei Newcool firm (Image Credits: Changan/Weibo)

Following this agreement, Avatr will own 10% of the Newcool stakes while Huawei will have 90%. This further raises Newcool’s value in the market by 115 billion yuan.

Apart from shares, Avatr also becomes the first external investor in the Huawei Newcool unit. With the new strategic cooperation, both firms will likely produce more dynamic and luxurious smart car products for the Chinese automobile market.