Huawei and Seres have announced a significant adjustment to their cooperation, with Seres taking the lead on the Aito brand's product definition, design, marketing, and retail services. The move, reported by Chinese media outlet Huxiu, signals Huawei stepping back from its dominant role in the partnership to a more traditional supplier position.
According to a statement from Harmony Intelligent Mobility Alliance (HIMA), the new model will see Seres lead while Huawei's terminal business provides support. The adjustment does not affect other HIMA brands like Zunje, Xiangjie, Zhijie, and Shangjie, which will continue with Huawei's full-process leadership model.
This is the first time Huawei has retreated from a leading role in its smart car ecosystem, raising questions about its long-term strategy in the automotive sector. The Aito brand, launched in 2021 as a pioneering example of Huawei's 'smart selection' model, has been a success story, with models like the Aito M7 and M9 achieving strong sales. However, the partnership has been costly for Seres, which paid 2.5 billion yuan (about $352 million) to acquire the Aito trademark and related intellectual property from Huawei in 2024, and has invested heavily in Huawei's ecosystem, including a 11.5 billion yuan (about $1.62 billion) stake in Huawei's intelligent vehicle solutions unit, Yinwang.
Financial pressures and strategic shift
Seres has enjoyed significant benefits from its association with Huawei, reporting net profits of around 6 billion yuan (about $845 million) in both 2024 and 2025. However, in the first half of 2026, the company posted a loss of 1.7 billion yuan (about $239 million) due to market downturns and rising raw material costs. Additionally, Seres' procurement from Huawei and related entities has been substantial, with purchases totaling 42 billion yuan (about $5.92 billion) in 2024 and an estimated 56 billion yuan (about $7.89 billion) in 2025, including channel and marketing fees.
For Seres, taking control of the Aito brand allows it to operate with greater autonomy and potentially improve profitability. The brand has established a high-end image, and a dedicated retail model may be more sustainable. For Huawei, the retreat is less painful as it has multiple other partnerships and its supplier business, Yinwang, is profitable, allowing it to focus on technology provision rather than brand management.
Background and implications
Huawei's entry into the automotive sector followed US sanctions in 2019 that crippled its smartphone business. The company chose not to build its own cars but to help automakers build better ones, a strategy articulated by rotating chairman Xu Zhijun in 2021. The Aito brand's evolution from 'Huawei Aito' to 'HUAWEI Aito' and now to 'Seres Aito' reflects a gradual distancing, culminating in the September 15, 2026 announcement.
This adjustment marks a pivotal moment in Huawei's automotive strategy, potentially signaling a shift toward a more supplier-centric approach. It remains to be seen how this will affect the broader HIMA ecosystem and Huawei's other partnerships.
