SHANGHAI -- Shanghai-based SAIC Motor Corporation Limited on Tuesday signed an agreement to establish a car manufacturing plant and supporting vehicle battery facilities for its new electric vehicle (EV) brand co-developed with Huawei in the Lingang new area of the China (Shanghai) Pilot Free Trade Zone (FTZ) in Shanghai.

The plant is designed to have an annual production capacity of about 250,000 vehicles in its early stages, according to SAIC Motor.

The move follows a partnership formed earlier this year between SAIC Motor and Huawei. In February, the two companies signed a deep cooperation agreement to jointly launch the SAIC Shangjie brand.

Tech giant Huawei has already collaborated on four other EV brands, namely Aito, Luxeed, Stelato and Maextro, under its Harmony Intelligent Mobility Alliance (HIMA). Huawei's tech support, such as adaptive driver assistance and intelligent cockpit solutions, has injected new momentum into the partner carmakers.

SAIC Shangjie vehicles will be equipped with Huawei's smart mobility solutions, said Zhu Yong, head of the SAIC ShangJie business. The cars will target the middle to high-end market, catering mainly to households and young white collar workers.

The first model under the brand, an SUV priced at around 200,000 yuan ($27,800), is expected to hit the market this autumn. It will be available in both pure electric and extended range versions. The pure EV model can offer a range of over 600 km on a single charge.

Joining the HIMA family, SAIC Shangjie will help further lower the price range for Huawei co-developed cars to 200,000 yuan, in a bid to better tap the vast mainstream market, Zhu said.

The SAIC Shangjie project is expected to boost the scale of the already leading new energy vehicle (NEV) industry in the Lingang new area, home to Tesla's Shanghai Gigafactory, to exceed 300 billion yuan, said Li Xiangcong, an official with the administrative committee of the Lingang new area.

The Lingang new area now boasts over 200 vehicle-related companies, forming an ecosystem covering vehicle manufacturing, research and development and testing.