TMTPOST -- Dongfeng Motor Corporation is preparing to roll out a brand-new new energy vehicle (NEV) brand, signaling a major push in its transformation strategy and a deeper integration with Huawei in intelligent mobility. The new company is expected to be formally established soon, with its first model scheduled to debut in the fourth quarter of next year.

The project, currently codenamed XY, is being incubated by a team spun out from the former Dongfeng Nissan Technical Center. The R&D head previously oversaw the development of Dongfeng’s Venucia brand. While the team is temporarily housed within the Nissan system, Dongfeng plans to establish an independent company for the project, which will eventually relocate its operations to Wuhan.

Rather than adding new capacity, Dongfeng intends to reuse and revitalize existing manufacturing resources. The XY project will leverage Dongfeng Nissan’s Xiangyang plant, which has already begun conversion. Historically, the plant has produced several mid- to high-end models, including Nissan’s flagship Teana sedan and the Murano SUV, as well as Infiniti models. At its peak, the plant’s annual output exceeded 200,000 units, though production has slowed in recent years.

After its upgrade, the Xiangyang plant is expected to support annual production and sales of around 300,000 intelligent vehicles, positioning the XY brand for large-scale rollout. The move follows Dongfeng’s broader strategy of reusing idle joint-venture capacity, as seen with Voyah and Nano, which repurposed facilities from Renault, Peugeot-Citroën, and Nissan.

Much like its existing brands Voyah and eπ, Dongfeng plans to integrate Huawei’s technologies across multiple levels of the XY project. In addition to supplying smart cockpit and intelligent driving solutions, Huawei is expected to participate in product definition, R&D, marketing, and potentially post-launch operations.

Industry sources suggest that the cooperation will follow an emerging “HI Plus” model, which sits between Huawei’s two current approaches: the HI (Huawei Inside) model, where Huawei acts purely as a supplier of full-stack solutions, and the Smart Selection model, where Huawei leads product, technology, and sales, as seen in AITO and Luxeed. Under “HI Plus,” automakers remain the primary drivers of brand development, but Huawei maintains a deep role across critical stages.

Other automakers have already begun adopting this model. Changan’s Avatr and GAC’s newly launched Qijing brand both fall under the “HI Plus” category, pointing to a broader industry trend.

For Dongfeng, the XY project represents more than just a new brand launch. It marks a strategic deepening of cooperation with Huawei, moving from one-off technology procurement to a system-wide partnership. Earlier this year, Dongfeng and Huawei signed a group-level strategic cooperation agreement, which included plans to establish a joint innovation lab and accelerate collaboration in intelligentization.

As Dongfeng accelerates its NEV transformation, the XY project is set to become a key pillar. By combining idle premium manufacturing resources with Huawei’s cutting-edge intelligent vehicle technologies, Dongfeng aims to replicate and even surpass the success of Voyah.

If successful, the XY brand could emerge as a new force in China’s increasingly competitive NEV market—one defined not only by electrification but also by intelligence and ecosystem-driven innovation.