On Monday, Swedish EV maker Polestar announced a collaborative venture with Xingji Meizu to design an operating system for Polestar cars sold in China with the newest smart technologies.
Geely (GEELY.UL) continues to customize cars for Chinese buyers through the business. Geely chairman Li Shufu owns Meizu and controls Volvo Cars (VOLCARb.ST), Polestar’s largest investor.
Polestar, which builds all its cars in China, said the new operating system would be based on Xingji Meizu’s Flyme Auto system, announced earlier this year, and connect to in-car apps and consumers’ phones.
The Swedish group funded $98 million and Xingji Meizu $102 million to own 49% and 51% of the JV, respectively.
Polestar CEO Thomas Ingenlath told Reuters that the new software would be promptly put into its vehicles, but the Google Auto system in cars sold outside China would stay unmodified.
Over the past decade, Xingji Meizu has developed to become a Chinese Android competitor, yet it has a small market share.
Chinese EV producers offer reduced prices and clever consumer-facing features, pressuring traditional carmakers.
“We definitely struggle in being competitive in that environment,” Ingenlath said, adding that working with a company closely tied to its owner would be beneficial.
Ingenlath said this allowed U.S.-listed Polestar to employ almost in-house tech and directly target Chinese buyers.
“This brings us in a completely different position and puts us on the same level as, if not even ahead of, our Chinese EV competitors,” he told Reuters.