Huawei Technologies Co said on Sunday that it will team up with automaker Changan Auto to build a new joint company for the research and development, production, sales and service of intelligent automotive systems and component solutions.

Changan Auto will take up to 40 percent share of the JV, which "will work with partners to promote innovation and leadership in smart car technology and promote the prosperity and development of the automotive industry," Huawei said in a press release.

The equity ratio and amount of capital contributed will be negotiated by the two parties, Chongqing Changan Automobile said in a filing with the Shenzhen Stock Exchange on Sunday.