From EVs to AI: Pivotal collaborations in China's auto industry in Jan. 2025

In January 2025, the Chinese automotive industry experienced a new wave of significant collaborations. Notable development included Volkswagen renewing tie-up with XPENG, CATL deepening its collaboration with SAIC Motor, Horizon Robotics joining forces with iMotion, and Schaeffler signing an agreement with XPENG AEROHT. Below is a summary of the key events:

Automakers

Dongfeng eπ, Huawei deepen collaboration

On January 22, Dongfeng eπ—the mainstream technology-driven electric vehicle brand under Dongfeng Motor—signed an intelligent vehicle strategic cooperation agreement with Huawei Technologies at the latter's headquarters in Shenzhen city.

The two companies would deepen collaboration in product development, marketing, and ecosystem services to create an exceptional intelligent mobility experience and develop a series of mid- to high-end smart vehicle products.

For Dongfeng eπ, this partnership is expected to expand its market share and influence in the intelligent vehicle sector.

ARCFOX, NIO Power launch cooperation on charging network interoperability

On January 17, BAIC Group's premium electric vehicle brand ARCFOX announced a cooperation with NIO Power to achieve charging network interconnectivity.

Under the terms of the agreement, ARCFOX users can access NIO Power's extensive, efficient, and user-friendly charging network nationwide via the ARCFOX app or the "Charging Bar" mini-program.

Since 2024, NIO has steadily strengthened its partnerships with automakers, now linking its charging network with brands including AVATR, Chery, Dongfeng Motor's MHERO, Harmony lntelligent Mobility Alliance, Hongqi, DEEPAL, AION, IM Motors, ZEEKR, Lotus Cars, Cadillac, Buick, and XPENG.

smart, DeepRoute.ai forged strategic partnership on AI large model deployment

On January 16, smart announced a strategic cooperation with autonomous driving company DeepRoute.ai to develop an intelligent driving-focused AI model.

The collaboration would focus on cutting-edge AI research to jointly create an intelligent driving system that transforms vehicles from mere mobility tools into "AI intelligent agents."

The new AI model, employing an end-to-end algorithm, would enable smart driving from parking spot to parking spot and handle complex scenarios such as roundabouts, sharp turns, congested narrow roads, and unmarked lanes.

This partnership is expected to significantly enhance smart's brand competitiveness in the global shift toward intelligent vehicles.

GAC Group advances partnership with Huawei over a new project company

On January 13, GAC Group announced its investment agreement on establishing a new project company—temporarily named GH Project Company—with a registered capital of 1.5 billion yuan.

The new company would serve as a platform for GAC and Huawei to integrate their strengths in product development, marketing strategy, and ecosystem services to create a new automobile brand built on an innovative architecture and leading technologies. Joint office arrangements have already commenced, with plans to launch a series of intelligent new vehicle models, the first of which is targeted at the 300,000-yuan luxury intelligent new energy vehicle segment.

This move marks a substantive step in the GAC-Huawei partnership.

XPENG, Volkswagen Group renew partnership in super-fast charging field

On January 6, XPENG and Volkswagen Group China announced a strategic partnership in the field of super-fast charging networks with a memorandum of understanding (MoU) signed on spot. The move marked the fourth milestone in their long-term strategic partnership.

Under the MoU, XPENG and Volkswagen Group China would grant each other access to their proprietary super-fast charging networks, jointly aiming to establish the largest super-fast charging network in China.

Through this strategic collaboration, the two companies would provide customers access to a network of over 20,000 charging terminals spanning 420 cities across China.

Leveraging complementary strengths in high-power liquid-cooled charging technology and extensive network coverage, the collaboration promises a superior fast-charging experience nationwide. The companies would also explore the joint development of co-branded super-fast charging stations.

Supplier

Horizon Robotics, iMotion forge strategic alliance

On January 21, Horizon Robotics and iMotion signed a strategic cooperation agreement. The two companies would conduct deep collaboration in automotive intelligence technologies and product development to deliver innovative smart driving solutions for automakers, jointly expanding into domestic and international markets, and fostering sustainable industry growth.

Currently, the partners are advancing mass production initiatives based on the latest-generation Journey® 6 series smart computing platform. iMotion has successfully deployed advanced algorithm models on Horizon Robotics' Journey® 6 computing solution, and, together with Horizon Continental Technology Shanghai Co., Ltd., the joint venture between Continental and Horizon Robotics, will develop lightweight urban smart driving products.

In the second half of 2025, iMotion's high-end smart driving domain controller based on the Journey® 6 series is slated for mass production on two flagship models from a leading Chinese automotive group and will be launched at home and abroad.

Hesai Technology secures mass production contracts with Dongfeng Motor, Chery

On January 22, LiDAR company Hesai Technology ("Hesai") announced it had secured exclusive mass production contracts for its LiDAR systems with multiple brands under Dongfeng Motor Group, including VOYAH.

The previous day, on January 21, Hesai also secured a similar deal with Chery Automobile. The collaboration centers on Hesai's compact, ultra-high-definition long-range LiDAR, ATX, with related models scheduled to hit the market from 2025.

In addition, automakers such as Great Wall Motor and Changan Automobile have confirmed plans to integrate Hesai's ATX LiDAR in upcoming vehicle models. Currently, the ATX LiDAR is steadily progressing toward mass production.

Schaeffler, XPENG AEROHT ink deal for volume production of flying cars' core parts

On January 8, 2025, Schaeffler and XPENG AEROHT, a flying car (also eVTOL aircraft) company under XPENG, signed an agreement in Guangzhou to collaborate on the volume production of stator and rotor assemblies for the flight e-drive system of the latter's flying cars, according to Schaeffler's press release.

Under the agreement, Schaeffler would supply core components—stator and rotor assemblies—for the flight e-drive system of XPENG AEROHT's modular flying car, dubbed the "Land Aircraft Carrier."

As the power unit of flying cars, the flight e-drive system demands exceptional safety, reliability, and lightweight design. Schaeffler highlighted its extensive expertise in aerospace and automotive e-drive technologies, as well as its experience in product development and mass production, as critical factors in delivering efficient and reliable drive systems.

With the growth of the low-altitude economy, the flying car market is demonstrating immense potential. This collaboration is set to further propel the development of flying car technology, paving the way for innovative advancements in this emerging sector.

SAIC Motor, CATL cement cooperation in tech R&D, battery swapping, global expansion

On January 10, CATL announced it had signed an agreement with SAIC Motor to cement their strategic collaboration in multiple areas, including co-development of technologies, aftermarket services for vehicles and batteries, overseas expansion, and battery-swapping innovations.

Under the agreement, CATL and SAIC Motor would jointly develop power battery products tailored to the latter's vehicle lineup. CATL's cutting-edge technologies, such as the Qilin Battery and Shenxing Battery, would be prioritized for integration into SAIC Motor's models. The Shanghai-based automobile giant has also designated CATL as its preferred supplier for automotive power batteries.

In the aftermarket sector, the two companies aimed to deepen collaboration in areas such as charging station development, used car business models, and battery recycling and repurposing.

To support SAIC Motor's global expansion, CATL would leverage its overseas resources to establish local supply chains through production bases and after-sales service networks.

The partnership also includes plans to explore battery-swapping solutions. SAIC Motor would develop and market battery-swappable vehicles, while CATL and its affiliates would provide standardized swappable batteries and relevant services, including battery sales, leasing, and swap operations.

United Nova Technology, GAC AION set up joint lab for R&D, design of semiconductor chips, modules

On January 2, United Nova Technology Co., Ltd. ("UNT"), a Chinese player in power discrete and module filed, and GAC AION, a new energy vehicle maker under GAC Group, signed a strategic cooperation agreement to establish a joint laboratory, marking a deepening of their collaboration in the automotive semiconductor sector.

Unveiling ceremony of the joint laboratory was held at the same time.

According to the new agreement, the joint laboratory would focus on automotive semiconductor research and product development, spanning process design, manufacturing, and end-use applications.

This collaboration followed UNT's prior agreement with GAC AION in October 2024, when the two companies signed a long-term strategic partnership. The new partnership expanded their cooperation from commercial agreements to joint research and development, with the aim of designing next-generation automotive semiconductor chips and modules.

Black Sesame Technologies, Alibaba Cloud deepen cooperation on development, promotion of intelligent automotive solutions

On January 2, automotive computing solution developer Black Sesame Technologies announced a deepened strategic partnership with Alibaba Cloud and Banma, its automotive tech arm. The collaboration aims to develop and promote integrated cabin-driving solutions for smarter and more efficient in-vehicle experiences. 

In September 2024, Black Sesame Technologies and Banma began their cooperation to integrate smart cockpit and advanced intelligent driving systems onto a single chip, a step toward achieving seamless "cabin-driving integration." The addition of Alibaba's Tongyi Qianwen (Qwen) AI large model made this integration completed.

The Qwen2.5-1.5B and Qwen3B models, already deployed on Black Sesame Technologies' Wudang C1200 chips, can simultaneously run with the BEV (bird's eye view) smart driving model on the same chip, enhancing data security and response speed.