Huawei is ceding control of Aito, its most successful electric-vehicle brand, to partner Seres, according to a September 15 announcement from Harmony Intelligent Mobility Alliance (HIMA), the umbrella brand for Huawei's car partnerships. Under the new arrangement, Seres will lead product definition, design, brand marketing, channel retail, and service systems, while Huawei's role shifts to "participating in enabling." This marks a significant departure from the previous model, where Huawei oversaw nearly every aspect of the brand.
The change has rattled investors and consumers alike. On the day of the announcement, Seres' A-share and H-share prices fell 5.09% and 6.12%, respectively. Some Aito customers, who valued the Huawei association, threatened to cancel orders, with social media commentary likening the move to "the crown prince being deposed in a succession struggle." According to the Chinese outlet Huxiu, which cited the WeChat account "Shan Shang," the adjustment has sparked concerns that Aito may lose its "Huawei halo."
Why the model changed
Aito has been the backbone of HIMA, accounting for over 60% of the alliance's deliveries. From January to August this year, HIMA delivered approximately 328,100 vehicles, with Aito contributing the majority. The brand's success has been remarkable: sales grew from over 75,000 units in 2022 to nearly 100,000 in 2023, 380,000 in 2024, and 420,000 in 2025. The Aito M9 SUV alone has surpassed 300,000 cumulative deliveries and held the sales crown in its segment for 21 consecutive months.
However, the previous "smart selection" model, where Huawei controlled product definition and branding, proved costly for Seres. Besides purchasing intelligent driving and cockpit hardware from Huawei, Seres paid technology licensing and channel marketing fees, which reportedly totaled about 10% of each vehicle's price. Seres' procurement from its largest supplier—widely believed to be Huawei—surged from 5.8 billion yuan (about $817 million) in 2022 to 56 billion yuan (about $7.9 billion) in 2025, representing 33.8% of total procurement. Despite gross margins above 26% in its new-energy vehicle business, Seres' net margin hovered around 4%, and it swung to a loss in the first half of this year, with net margin falling to about -3.81%.
For Huawei, managing multiple "Jie" brands under HIMA—now five in total, ranging from budget to ultra-luxury—has become increasingly complex. The company now prioritizes the HIMA ecosystem over Aito alone, according to Huxiu, which cited internal meetings led by Xu Qinsong, president of Huawei's consumer business group in China.
What changes for consumers
Seres has moved to reassure stakeholders that Aito remains a core member of HIMA and will continue to receive Huawei's latest technologies. Seres vice president Kang Bo stated that the company's 10% stake in Huawei's car software unit Yinwang ensures access to "the newest, best, and most practical" technologies. The newly launched Aito M9, for instance, debuts Huawei's ADS 5 driver assistance and 800V electric drive platform.
Yet the brand perception may be harder to maintain. Aito has long been viewed by consumers as the embodiment of "Huawei cars," with some early stores even using the "HUAWEI Aito" banner. A 2026 brand health study by Jielanlu found that Aito was the most spontaneously associated new-energy brand when consumers mentioned Huawei, with a 66.8% overall mention rate. In contrast, other HIMA brands like Xiangjie, Zhijie, and Zunjie had only around 20% mention rates.
Seres is preparing for a broader product lineup, with Kang Bo indicating plans to enter sedans, MPVs, and other segments beyond SUVs. The company has also expanded its own sales network to over 400 user centers across 200 cities. But convincing consumers that Aito's "Huawei content" hasn't diminished will be a key challenge, as the brand transitions from being "defined and operated by Huawei" to a more conventional partnership.