Huawei and its electric-vehicle partner Seres have announced a significant restructuring of their cooperation on the AITO (Wenjie) brand, a move that many in the industry are calling a de facto split. According to a joint statement on September 15, Seres will now take the lead on product definition, design, brand marketing, channel retail, and service systems, while Huawei's role will be reduced to "empowerment," primarily in smart cockpit software and hardware support.
The announcement, reported by the Chinese outlet Huxiu, marks a clear departure from the previous arrangement where Huawei had deep involvement in nearly every aspect of AITO's operations, from product planning to supply chain management. Starting in 2023, Huawei and Seres had established joint working groups that gave Huawei significant influence over vehicle development, quality control, and even sales and service. This hands-on approach was evident in Huawei stores, where AITO vehicles were displayed alongside smartphones, and Huawei's executive Richard Yu often led product launches.
Channel Separation and Timeline
The restructuring also includes changes to the sales network. Dealers have been informed that from January 1, 2027, AITO will withdraw from Huawei's Harmony Intelligent Mobility (HIM) stores and Huawei-branded retail outlets. Dealers will be able to choose to represent either Huawei's other "jie" brands (Zhijie, Shangjie, Zunjie, Xiangjie) or AITO, with AITO retaining its existing delivery centers for after-sales support. This means that starting next year, customers entering Huawei stores will no longer see AITO vehicles, a visible sign of the growing distance between the two companies.
The decision comes as Seres faces mounting financial pressure. Sales of AITO vehicles have declined sharply, with deliveries of 20,480 units in July and 20,652 units in August, both down about 50% year-on-year. In the first half of 2026, Seres reported revenue of 57.493 billion yuan (about $8.1 billion), a 7.87% decrease, and swung to a net loss of 1.717 billion yuan (about $242 million) from a profit of 2.941 billion yuan (about $414 million) in the same period last year. The company attributed the losses to model transitions, product mix changes, and higher costs for batteries and chips.
Strategic Realignment
Initially, Seres was the sole beneficiary of Huawei's sales network, but as more "jie" brands joined, competition for showroom space and customer attention intensified. For Seres, having its own dedicated channels could allow it to focus exclusively on AITO, potentially improving sales efficiency and brand identity. However, the move also means losing the halo effect of Huawei's brand and its massive retail footprint.
Whether this separation will benefit Seres remains uncertain. The company will need to build its own sales and marketing capabilities, while Huawei continues to support other partners. For consumers, the change may be confusing, especially for those who bought AITO vehicles under the impression of a deep Huawei partnership. As the automotive industry watches closely, the success of this new model will depend on Seres' ability to stand on its own in a highly competitive market.
