SAIC, the Chinese partner of Volkswagen and GM, unveiled a new marque on Wednesday with Huawei, as the traditional car giant struggles to catch up in the fiercely competitive smart electric vehicle segment.

The new marque, called Shangjie, is the latest member of Huawei's Harmony Intelligent Mobility Alliance, which already includes AITO, Stellato, Luxeed, and Maextro.

These four marques were codeveloped by Huawei with carmakers Seres, BAIC, Chery, and JAC, respectively.

Jia Jianxu, president of SAIC, said that the carmaker has set up a team of over 5,000 employees and set aside an initial investment of 6 billion yuan ($821 million) to ensure that the first model will come out this year.

"We will do everything to ensure Shangjie is a success," said Jia, who came to take the helm at SAIC last year.

SAIC has been losing ground as car buyers in China shift from gasoline cars to smart electric vehicles.

Its long-held title as China's bestselling carmaker was seized by BYD last year, as its joint ventures SAIC Volkswagen and SAIC GM saw sales slump.

SAIC had long insisted on building its own smart driving system and digital architecture.

Former chairman Cheng Hong said SAIC would keep its "soul" free and independent when asked in 2021 whether it would consider working with technology companies, including Huawei.