GAC Group is set to create an electric car marque in partnership with Huawei, as the demand grows for smart and connected vehicles in China, the world's largest vehicle market.

The move is making GAC the fifth automaker to co-develop a brand with the Chinese technology giant.

The other four companies are Seres, Chery, BAIC, and JAC. All the four partnerships have seen the launch of at least one model. Neither GAC nor Huawei provided a timeline for the new brand's launch or its name.

According to the agreement signed on Saturday, the collaboration will combine GAC's expertise in vehicle manufacturing with Huawei's leadership in information and communication technology to create a new generation of smart, connected vehicles.

"As the automotive industry shifts toward electrification and digitalization, the partnership aims to leverage the strengths of both companies to create new milestones in the intelligent vehicle sector," said GAC in a statement.

GAC stated that the two companies will work together on product development, marketing, and ecosystem services to provide users with cutting-edge intelligent experiences.

The partnership builds on years of successful collaboration between the two companies, spanning various areas including hardware, software, product development, cloud services, and smart manufacturing.

GAC already has several homegrown brands, such as Trumpchi, Aion, and Hyper. Once popular brands, they are gradually moving away from the limelight in the Chinese vehicle market facing competition from both local startups and traditional giants like BYD.