SAIC Motor (SHA:600104) agreed to establish a factory for its new electric vehicle brand that will be co-developed with Huawei, Xinhua reported Tuesday.

The automobile company partnered with Huawei to develop the SAIC Shangjie brand, which will be equipped with the telecommunication company's smart mobility technology, the report said.

The factory, which will be located in the Lingang new area of the China (Shanghai) Pilot Free Trade Zone, will produce 250,000 vehicles every year during its early stages, the report said.