Like it or not, Huawei has become the company that no carmaker can afford to avoid, as car buyers are growing fond of smart electric vehicles.

Last week, the Shenzhen, Guangdong province-based technology giant unveiled a new marque with SAIC, called Shangjie, as part of the carmaker's effort to catch up in the fiercely competitive smart electric vehicle segment.

Jia Jianxu, president of SAIC, said that the carmaker has set up a 5,000-plus-person team and set aside an initial investment of 6 billion yuan ($821 million) to ensure that the first model will come out this year.

"We will do everything to ensure Shangjie is a success," said Jia, who took the helm at SAIC in 2024.

The marque Shangjie is the latest member of Huawei's Harmony Intelligent Mobility Alliance, which includes Aito, Stelato, Luxeed and Maextro.

These four marques were codeveloped by Huawei with carmakers Seres, BAIC, Chery and JAC, respectively. All but Seres are seasoned giants in the automotive sector.

Like Jia, the bosses of the four carmakers have vowed to make their partnership with Huawei a top priority as Aito's meteoric rise was the best stimulus.

It took only three years to bring Seres from a nobody in the sector to the nouveau riche on the center stage.

In 2024, Seres became the new member of the Shanghai Stock Exchange 50, like China's version of the Dow Jones or the S&P 500, and SAIC was removed.

When Huawei revealed its plan to enter the auto industry several years ago, it said it would like to become China's Bosch, a famous German auto supplier. Now it seems it has done a better job in some sense, said analysts.

But it was SAIC's arrival in the HIMA that has forced many in the automotive sector to reconcile with the fact that it is no longer the age of traditional carmakers.

SAIC is long regarded as the flag bearer of China's auto industry, witnessing and playing a big part in the country's auto history. It is the parent of China's earliest extant joint venture, SAIC Volkswagen, established in 1984. The Santana sedan was the dream car of Chinese families in the 1980s and 1990s.

Its other joint venture, SAIC GM, has made the Buick brand much more successful in China than in its home, the United States. The Buick GL8 is still the benchmark of MPVs.

SAIC was the best-selling car group in China for 18 years in a row before it was dethroned by BYD in 2024, with 4.27 million vehicles delivered, up 41 percent year-on-year.

SAIC lagged not far behind in terms of pure volume; it delivered 4.01 million units. It is still a giant but sales slumped 20 percent from 2023, following a 5.3 percent drop from 2022.

A breakdown of its 2024 sales show NEVs totaled 1.23 million units, or 30.6 percent of its total sales, lower than the average of 47.6 percent in the country. Its NEV sales grew 9.9 percent year-on-year, far lower than the average of 35.5 percent.

Its high-end electric brand, IM Motors, a partnership with Alibaba, is struggling to be seen in the crowd of startups like Nio and Voyah, let alone Li Auto and XPeng.

Former cash cows, SAIC GM and SAIC Volkswagen, with SAIC GM deliveries accounting for half of its sales in 2023, saw disastrous sales drops due to their failure to come up with smart electric models that Chinese car buyers like.

SAIC had long insisted on building its own smart driving system and digital architecture. Former boss Chen Hong said SAIC would keep its "soul" free and independent when asked in 2021 whether it would consider working with technology companies, including Huawei.

Nobody knows if Chen would reconsider his answer if the same question were to be proposed again, but his protege, Jia, has changed the company's direction.

Jia famously said "one may have to kneel first before he gets the chance to stand up firmly on his feet" at a meeting soon after he came to the helm in mid-2024.

"We (and Huawei) started our 'love affair' in 2024," said Jia last week, adding that the team has been working tirelessly, even during the Spring Festival holiday.

"It has to be a successful marque, and we must launch the first model this year," said Jia, adding that "you will soon find a new super plant as the one in Chongqing", referring to Seres' Aito plant.

Neither SAIC nor Huawei gave details about the model except that it will feature Huawei's smart driving system and smart cabin. Some reports say the model will be built based on a model by Rising Auto, a lackluster brand under SAIC.

Jia told reporters earlier this month that the partnership is more than SAIC capitalizing on Huawei's fame and expertise.

"We have our dowry: we have system-level capabilities, complete vehicle development experience, and strong cost control.

"This allows us to help Huawei integrate their intelligent technologies into vehicles priced under 200,000 yuan — and that's where we can truly add value," he said.

The price tag will position Shangjie as the most affordable in the HIMA. But it is prepared to take on rivals like Geely and BYD in the largest and most fierce volume car segment.

While some are optimistic about the partnership's prospects, others are saying that the name of Huawei no longer excites consumers as when it first partnered with Seres to launch Aito.

"If everyone is working with Huawei, then nobody is working with Huawei in a sense," said an analyst who wants to remain anonymous.

Although there are five brands in the HIMA, there are more than 20 brands who use Huawei's systems, from Dongfeng's Voyah to Changan's Avatr.

Global brand Audi is to launch vehicles in China fitted with Huawei system this year as well.

Meanwhile, Aito's sales have started to decline this year. Seres said its NEV sales, with Aito as the majority, totaled 54,552 units in the first quarter, down 42.47 percent year-on-year.

Stelato sales have hovered around several hundred a month since its launch in October, although BAIC has vowed to put all resources in to boost the brand.

That won't be a problem for Huawei, though. It made itself clear long ago that it just wanted to sell components like Bosch.