China FAW will work with Geely-backed parts supplier Ecarx to create high-end smartphones for the Hongqi brand that will bring an intelligent interactive experience to users, according to a statement.

(Image credit: CnEVPost)

Another car company is set to launch smartphones in an attempt to provide a better connectivity experience with vehicles.

Ecarx Holdings (NASDAQ: ECX), a Geely-backed auto parts supplier, said today that China FAW will work with it to build high-end smartphones for the Hongqi brand to bring the ultimate connected smart interaction experience to users.

Ecarx signed an agreement with FAW today at the automaker's headquarters in Changchun, Jilin, in northeast China, to collaborate on smart cockpit, according to a statement from the parts supplier.

The two companies will work together on the Hongqi smart cockpit and Hongqi OS, Ecarx said.

(Image credit: Ecarx)

Hongqi, the premium new energy vehicle (NEV) brand of China FAW, unveiled its "All In New Energy" strategy in January 2023, and has made Hongqi New Energy a standalone operation to accelerate its electrification transition.

Hongqi New Energy's retail sales in 2023 exceeded 85,000 units, up 135 percent year-on-year, according to its previously announced figures.

The brand launched the Hongqi EH7 on March 20, the first model by Hongqi New Energy since it became an independent operation last year.

Several car companies have released or announced plans to launch smartphones over the past year, as the phone-vehicle connectivity experience becomes more important to consumers.

Nio (NYSE: NIO) launched its first Nio Phone on September 21, 2023, a high-end Android device with a starting price of RMB 6,499 ($900).

Nio emphasized the connectivity between the Nio Phone and its EV models, offering a range of features such as a smart car key that allows remote car control and more than 30 functions without the need for Internet connectivity.

The company has begun giving away free phones as one of the selling points for its vehicles, and ads can be seen on social media.

Nio's second-generation phone is already in development and in the manufacturing phase, the electric vehicle (EV) maker's founder, chairman, and CEO William Li said last month.

Polestar (NASDAQ: PSNY) announced on April 16 that it will release its first Polestar Phone on April 23.

(Image credit: Polestar)

Images posted by Polestar on Weibo show that the Polestar Phone looks basically the same as the Meizu 21 Pro.

Meizu was one of China's first smartphone makers, founded in 2003. On July 4, 2022, Hubei Xingji Shidai Technology, a phone-making company founded by Geely founder Eric Li, announced that it had completed the acquisition of a majority stake in the handset maker.

The primary goal of automakers choosing to produce smartphones is to boost the competitiveness of their cars and increase exposure for their brands, market researcher Canalys said in an October 11, 2023, research note.

By seamlessly integrating smartphones with smart cockpit systems, car companies can create their own ecosystems and differentiate the user experience, the note said.

Canalys explains why EV makers, including Nio and Polestar, make smartphones