DONGFENG GROUP(HK:00489) Nan Fang Du Shi Bao·2025-09-18 01:48Core Viewpoint - Dongfeng Group is establishing a joint venture with a registered capital of 8.47 billion yuan, focusing on the development and sales of smart vehicles, particularly smart off-road vehicles, in collaboration with Huawei and local government entities [1][3][5] Group 1: Joint Venture Details - The joint venture will have a registered capital of 8.47 billion yuan, with Dongfeng Group and Dongfeng Motor contributing 3.55 billion yuan and 920 million yuan respectively, accounting for approximately 41.9% and 10.9% of the capital [1] - Xiangyang Holdings and Xiangao Investment will contribute 2.88 billion yuan and 1.12 billion yuan, representing 34% and 13.2% of the joint venture [1] Group 2: Strategic Importance - The establishment of the joint venture reflects Dongfeng's response to the changing landscape of the automotive industry, particularly the shift towards smart electric vehicles [3][5] - Dongfeng aims to break free from its reliance on joint ventures in the fuel vehicle sector and develop its own core competencies in smart vehicle technology [3] Group 3: Collaboration with Huawei - Huawei will provide its integrated product development (IPD) and integrated product marketing and service (IPMS) capabilities to enhance Dongfeng's processes and innovation [4] - The partnership with Huawei is expected to leverage advanced technologies, as seen in the recently launched Mengshi M817 model, which features Huawei's HarmonyOS and advanced driving systems [4] Group 4: Market Challenges and Future Outlook - The new joint venture is seen as a proactive move by Dongfeng to navigate market challenges and transform its business model amid declining traditional joint venture operations [5] - Future uncertainties include the market capacity for smart off-road vehicles and the joint venture's ability to effectively integrate resources and launch competitive products [4][5]