(Yicai) Aug. 1 -- Shares in Jianghuai Automobile Group, better known as JAC Motors, soared as much as 8.1 percent today after it was reported that the Chinese carmaker's first high-end electric vehicle produced in conjunction with tech giant Huawei Technologies will start shipping next year.

JAC Motors’ share price [SHA:600418] closed up 2.3 percent at CNY15.14 (USD2.10) apiece today. Earlier in the day it hit CNY15.99.

The multi-purpose vehicle, which will be made under Huawei’s Aito brand, will sell for CNY1 million (USD140,000), Ming-Chi Kuo, an analyst at TFI Securities and Futures, said on social media. Deliveries will start in the second quarter next year and sales should reach 50,000 units in the first year of going to market, he said.

The tie-up will greatly boost JAC Motors’ revenue because the MPV will have a high profit margin, Kuo said. Even if the car only achieves between 20 percent and 30 percent of its sales goal, the Hefei, eastern Anhui province-based company will still be able to post a between 20 percent and 30 percent jump in revenue next year.

JAC Motors had no comment to make when contacted by Yicai.

It is unclear what sort of collaboration the two will have. Huawei has different ways of partnering with carmakers, which range from supplying the technology to focusing on everything from vehicle design to marketing but not the manufacturing. The Shenzhen-based firm has been linking up with a number of auto manufacturers, such as Seres Automobile, Chery Automobile and Baic Bluepark New Energy Technology, recently to promote its smart car business.

Huawei is already teaming up with JAC Motors to build an NEV smart industry park in Feixi county, Anhui province that will produce high-end electric vehicles. 

JAC Motors sold 278,800 vehicles in the first half, a jump of 18.5 percent from a year ago. The firm expects to rake in CNY150 million (USD21 million) in net profit over the period.

Editor: Kim Taylor