BEV and NEV Joint Ventures

Interieur Aito M5 EV    
(Mit freundlicher Genehmigung/Courtesy of Aito [Homepage])

Management Summary

In China in particular, IT companies are capitalizing on the automotive industry’s shift toward electric mobility to enter the vehicle business themselves. Typically, these tech companies partner with established internal combustion engine manufacturers to form joint ventures:

  • This allows tech companies to tap into new markets and integrate their products—such as software, operating systems, chips, or digital services—directly into vehicles. At the same time, they gain access to production capacity, industrial manufacturing expertise, and the global supply chains of established automakers.
  • Internal combustion engine manufacturers benefit from access to the tech companies’ software expertise, digital platform development, and new user ecosystems. At the same time, they can accelerate their electrification and digitalization strategies and tap into new business models in the field of connected vehicles. 

Chinese joint ventures include Aito, Avatr, and IM Motors:

  • Aito is by far the most successful joint venture in China; it was founded by the Seres Group and Huawei, and sold approximately 420,000 vehicles in 2025. 
  • Avatr is a joint venture between Changan and CATL, with Huawei supporting the partnership as a technology partner. In 2025, approximately 120,000 vehicles were sold. 
  • IM Motors is a partnership between SAIC Motors, Alibaba, and CATL; in 2025, 81,000 units were sold. The news that Audi intends to use IM Motors’ technology platform for its China models attracted significant attention.  

A joint venture has also been established in Japan:

  • Sony has chosen Honda as its partner; the joint venture is called Afeela. The first model was unveiled in early 2023.
  • Sales figures are not yet available, as production is not scheduled to begin until 2026. 

Chinese BEV joint venture

Aito M5 EV – Exterieur  
(Mit freundlicher Genehmigung/Courtesy of Aito [Press Release])

Aito M5 EV – Interieur
(Mit freundlicher Genehmigung/Courtesy of Aito [Press Release])

Aito is a Chinese NEV brand whose vehicles are developed and manufactured by the Seres Group, with the tech company Huawei serving as its primary technology and sales partner:

  • The Seres Group is a Chinese automaker headquartered in Chongqing that currently focuses heavily on electric vehicles and their core components. With approximately 520,000 vehicles sold, the company ranks among China’s mid-sized automakers.
  • Huawei supplies the HarmonyOS vehicle operating system as well as components for assistance and connectivity systems, and sells Aito models in its own showrooms.

Due to this close cooperation, Aito is considered a joint venture brand, even though Huawei does not formally hold any ownership stake in the brand and it is not legally a true joint venture.

The 420,000 vehicles sold in 2025 are predominantly equipped with range-extender (EREVs). Based on estimates derived from the model lineup (M5, M7, M8, and M9), EREVs accounted for approximately 85–90% of the total, while pure BEVs made up about 10–15%. This positions AITO primarily in the segment of electric SUVs with range extenders.

AITO is also working on international expansion. At IAA Mobility 2025, the brand presented a global model lineup for the first time to tap into markets outside of China. However, concrete plans for a market launch in Europe have not yet been confirmed; the sales focus remains clearly on China.

Publicly available financial figures on the brand’s revenue or profit are currently not available. The financial data is included in the results of the Seres Group, which operates profitably:

  • In 2024, the Seres Group generated revenue of approximately RMB 145.2B (€ ~18.6B) and a net profit of just under RMB 6B (€ ~760M).
  • In the first half of 2025, revenue amounted to approximately RMB 62.4B (€ ~8B), and net profit was RMB 2.94B (€ ~380M).

Avatr 11 – Exterieur
(Mit freundlicher Genehmigung/Courtesy of Avatr Technology (Chongqing) Co., LTD. [Homepage])

Avatr 11 – Interieur
(Mit freundlicher Genehmigung/Courtesy of Avatr Technology (Chongqing) Co., LTD. [Homepage])

Avatr was originally founded in 2018 by Changan and Nio, but Nio has since withdrawn. Instead, the Chinese cell and battery manufacturer CATL has joined the venture. Huawei is supporting the development but does not hold a stake in the company:

  • Changan is a state-owned automaker founded in 1862 to produce military goods. Among the four major state-owned automotive groups, Changan ranks third with approximately 2.9 million vehicles sold (2025 figures).
  • Huawei serves as the primary technology partner and supplies software platforms, cockpit systems, and driver assistance technology. This includes the HarmonyOS operating system for infotainment as well as Huawei’s platform for automated driving.  

Avatr’s model lineup currently includes several premium SUVs and sedans, including the Avatr 11, Avatr 12, Avatr 06, and Avatr 07, which are offered as pure BEVs or with range-extender (EREV) powertrains, depending on the model series.

Estimates based on the current models suggest that approximately 60–70% of Avatr sales are BEVs and about 30–40% are range-extender models (EREVs).

With 120,000 vehicles sold in 2025, Avatr is not yet profitable, but has managed to reduce its losses compared to previous years:

  • In 2024, annual revenue was approximately RMB 15.2B (€ ~2B) and the net loss was RMB 4B (€ ~0.52B).
  • In the first half of 2025, revenue rose to RMB 12.2B (€ ~1.6B €), and the loss narrowed to just under RMB 1.6B (€ ~0.21B).

The company began entering its first international markets in 2024, including Thailand and the United Arab Emirates, primarily through local distribution partners. In the long term, the company plans to expand into 40–50 international markets and potentially enter the European market starting around 2026.

A first step toward establishing a brand presence in Germany was the company’s appearance at IAA Mobility 2025 in Munich, where several production models (including the Avatr 06, 07, and 11) were showcased. No specific dates for a European market launch or initial deliveries have been announced yet.

IM Motors LS7 IM – Exterieur    

(Mit freundlicher Genehmigung/Courtesy of Zhiji Automobile Technology Co., Ltd. [Homepage])

IM Motors LS7 IM – Interieur    

(Mit freundlicher Genehmigung/Courtesy of Zhiji Automobile Technology Co., Ltd. [Homepage])

IM Motors is a joint venture between SAIC Motors, Zhangjiang Hi-Tech, and Alibaba that was founded as recently as 2021; the name stands for “Intelligence in Motion”:

  • SAIC Motors (Shanghai Automotive Industry Corporation) is China’s second-largest automotive group behind BYD, based on 2025 sales figures. The company is state-controlled and sold approximately 4.5 million vehicles worldwide in 2025. In addition to its own brands, SAIC also produces vehicles from Western manufacturers, including VW and GM, through joint ventures. 
  • Alibaba is involved as a technology partner and primarily contributes expertise in the areas of cloud computing, data platforms, and digital services. In particular, Alibaba supports infotainment, cloud, and data solutions within the vehicle platform.

In 2024, CATL acquired a stake in IM Motors as part of a capital increase. 

IM Motors positions itself as a premium electric vehicle brand within SAIC Motor and primarily targets buyers in the upper mid-range to luxury segments. The model lineup consists mainly of large sedans and SUVs, including the L6 and L7 sedans and the LS6 and LS7 SUVs.

Originally, the brand focused exclusively on BEVs, but since 2025 it has expanded its portfolio to include range-extended EVs (EREVs), including an EREV version of the LS6 and the large LS9 SUV.

Sales began in 2022. Since then, sales have been rising moderately but remain below the 100,000-vehicle mark at around 81,100 units in 2025. Nevertheless, IM Motors achieved its first technological success through its partnership with Audi. The German automaker is utilizing IM Motors’ platform technology for its new China models, which are sold under the AUDI brand.

SAIC does not publish separate full profit and revenue reports for IM Motors, as it is consolidated as a subsidiary/joint venture in SAIC Motor’s consolidated financial statements.

Japanese BEV joint venture

Afeela  – Exterieur   

(Mit freundlicher Genehmigung/Courtesy of Sony Honda Mobility Inc. [Gallery])

Afeela  – Interieur   

(Mit freundlicher Genehmigung/Courtesy of Sony Honda Mobility Inc. [Homepage])

Sony and Honda have formed a joint venture under the name Sony Honda Mobility Inc. which is developing car under the brand name Afeela.

The first production model is a large, five-door sedan, with production set to begin in the U.S. in 2026. The vehicle features two electric motors, all-wheel drive, and a battery with a capacity of approximately 91 kWh. The interior draws heavily on Sony’s expertise in the digital and entertainment sectors. The cockpit is defined by a wide display landscape that relies on software-centric operating logic.

Afeela also utilizes an environmental sensing system with around 40 sensors, including cameras, radar, and LiDAR. These are intended to enable advanced driver-assistance systems and semi-autonomous driving. The concept is complemented by comfort features such as air suspension and a modern interior design.

A first prototype was allready unveiled in 2023 at CES in Las Vegas.

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[cs 18.03.2026]