Asia Tech Wire (Aug 20) -- Avatar, an electric car maker backed by Changan Automobile, announced Tuesday that it has signed a deal to invest in Huawei's smart car unit Yinwang.

Upon completion of the deal, Avatar will officially become the second-largest shareholder of Shenzhen Yinwang Intelligent Technology Co. Ltd., a subsidiary that Huawei established in January this year to work on the smart car industry.

After the introduction of Avatar, Huawei still owns 90% of Yinwang.

Later the previous day, Changan Automobile announced that its affiliate Avatar intended to buy Huawei's 10% stake in Yinwang in a deal valued at 11.5 billion yuan.