(Yicai Global) Aug. 20 -- Chinese telecoms equipment giant ZTE and Chery Automobile, China's largest passenger car exporter, have agreed to set up a joint venture to develop and apply fifth-generation wireless technologies to vehicles.
ZTE's autonomous driving systems unit Yingbo Chaosuan Science and Technology and Chery's electric vehicle subsidiary Chery New Energy will form the new firm in Wuhu, Anhui province, Shenzhen-based ZTE said on its website today without revealing the investment amount nor the stake held by each company.
The JV will accelerate research and development into intelligent connected cars. It will strive to be the first to introduce these new technologies and products in China, ZTE Chairman Li Zixue said. The firm will also develop strong relationships with local companies to build high-quality 5G networks and assist in Anhui province's digital transformation, he added.
The pair will collaborate on product R&D as well as the manufacturing and testing of smart vehicles and related operations and services, the statement said. They will research how to apply 5G technology in smart factories, warehousing and logistics. Together they will build the foundation for future 5G-based artificial intelligence.
ZTE is positioning itself as a leader in 5G technology. As of the middle of this year, it had provided 5G solutions to over 300 clients in almost 20 industry sectors and had successfully carried out more than 40 demonstration projects, the firm said.
Founded in 1997, Wuhu-based Chery makes both passenger and industrial vehicles. Last year its sales volume grew 11 percent year on year to 753,000 units, despite a 3 percent drop in sales nationally.