Chinese tech giant Huawei is expanding its partnership with Changan Automobile to include the design and development of chips for cars, Reuters reported on Friday, citing people familiar with the matter.

The two companies have been working together informally on chips for the past few months and they may soon set up a joint venture for chip development, the report said.

On Nov. 14 last year, Changan Chairman Zhu Huarong said the company was working with Huawei and CATL to create a new high-end smart car brand.

"We are responding to the development of the times and the needs of users, and are joining hands with top technology companies Huawei and CATL to jointly create a high-end smart car brand and high-tech high-end products," Zhu told CCTV at the time, adding that the will be unveiled soon.

Among the 105 products, Changan plans to release in the next five years are 23 new energy products, the CCTV report said, adding that Changan expects to have a 5,000-strong software development team by 2025.

On Thursday, Changan Nio, a joint venture between Nio and Changan, announced a name change without the word "Nio," marking the end of the legacy carmaker's efforts to explore joint ventures with new carmakers.

Changan Nio has officially changed its name to Avatr Technologies Ltd. and will be fully marketable, independently operated and developed, Changan said in an announcement.

Avatr will join hands with Changan, Huawei and CATL to create the world's leading intelligent electric networked vehicle platform, build a rich line of intelligent vehicle products, and construct a smart life and smart energy ecology.

Notably, yicai.com reported on Wednesday that Changan, Huawei and CATL will join forces to create a high-end new energy brand that will include a smart electric connected car platform, a range of smart car products and a smart life and smart energy ecology, to be launched as soon as this month.

Changan didn't specify in Thursday's announcement, but the information above suggests that Avatr could be the new premium brand it is building with Huawei and CATL.

Changan NIO changes name to new one without 'NIO'