(Yicai) Dec. 4 -- Shares of Jianghuai Automobile Group, better known as JAC Motors, advanced after the Chinese automaker announced it teamed up with Chinese telecoms giant Huawei Technologies to jointly build luxury smart electric vehicles.

JAC Motors [SHA: 600418] was trading up 5.3 percent at CNY18.19 (USD2.57) as of 10.35 a.m. in Shanghai today.

JAC Motors and Huawei will carry out comprehensive cooperation in product development, production, sales, and services of luxury smart EVs, the Hefei-based carmaker announced late on Dec. 1, citing a 10-year deal signed by the pair.

JAC Motors will be responsible for the overall development and plant construction of the EV models, while Huawei or its designated third parties will provide global sales services, JAC Motors noted.

The two companies have been rumored to be working together to build cars for a long time. At the beginning of August, TF International Securities’ Analyst Ming-Chi Kuo said on Twitter, now known as X, that JAC Motors and Huawei were developing a smart electric multi-purpose vehicle priced at more than CNY1 million (USD141,400), expected to begin deliveries in the second quarter of next year.

Huawei and Changan Automobile announced on Nov. 26 that they will set up a joint venture dedicated to smart auto systems and component solutions, in which the Chongqing-based carmaker will own up to 40 percent of the equity.

On Nov. 28, The Paper reported that Huawei had invited five partners -- BAIC BluePark, Changan Auto, Chery Automobile, JAC Motors, and Seres Group -- to join the JV. Except for Changan Auto, the others were still assessing and making related preparations, the Chinese media outlet added.

Huawei has three approaches when partnering with carmakers: vertical parts supplier, intelligent systems provider through the Huawei Inside partnership model, and full-set solutions provider via the Huawei Smart Selection business model. Among them, the third approach has been the most successful so far, while the first two have yet to achieve significant commercial results.

JAC Motors did not disclose under which approach its partnership with Huawei falls.

Editors: Dou Shicong, Futura Costaglione