Seres has taken over day-to-day management of the Aito brand from Huawei, including product definition, design, marketing, channel and service, according to Chinese business outlet Huxiu. The move, confirmed on September 15, came as the automaker faces falling sales and widening losses.
The two companies responded to speculation of a split on September 15, with Harmony Intelligent Mobility Alliance and Aito both confirming that Aito remains a member of the alliance. Huawei will continue to supply intelligent driving and cockpit technology, while Seres takes the lead on product and brand operations.
Seres, which listed in Hong Kong in November last year, has seen its share price fall about 73.4 percent from the IPO price of HK$131.50 to HK$35 as of September 15. Its market value has dropped from about HK$229.1 billion at listing to around HK$61 billion.
Losses and slowing sales
Seres reported a net loss attributable to shareholders of 1.717 billion yuan in the first half of the year, with revenue down 7.9 percent and new-energy vehicle sales up just 3.9 percent. In July and August, monthly sales of Aito-branded vehicles remained around 20,000 units, with August sales down 50 percent year on year.
According to Seres' production and sales report, cumulative sales of Aito-branded vehicles in the first eight months were 201,900 units, down 14.07 percent year on year. The high-priced M9 has sold well, with cumulative deliveries of the new M9 exceeding 30,000 units in 12 weeks since its launch, at an average transaction price above 600,000 yuan. The M6, priced from 229,800 yuan, has added new sales, with cumulative deliveries exceeding 45,000 units in four months since its launch in late April.
Under the new arrangement, dealers began signing contracts with a Seres affiliate on September 16, replacing Huawei as the contracting party for comprehensive service agreements, according to Huxiu, citing a channel document confirmed by Seres. Orders before September 16 will still be settled by Huawei, while new orders will be handled by Seres.
Supply chain pressure
Seres' gross margin fell from 28.9 percent to 23.3 percent in the first half, while its sales expense ratio rose from 14.33 percent to 14.73 percent. Chairman Zhang Xinghai estimated in June that rising storage chip and lithium carbonate prices added 15,000 to 20,000 yuan to the cost of each Aito vehicle.
Seres paid 11.5 billion yuan to acquire a 10 percent stake in Huawei's smart-driving unit Yinwang, which will continue to supply intelligent driving and cockpit hardware and software. In the first half, Seres purchased 9.84 billion yuan of goods and services from Yinwang, up 75.6 percent from 5.6 billion yuan a year earlier.
Analysts cited by Huxiu say the new division of labor could help Seres align product development with sales, but the company still needs to negotiate procurement prices and manage its own marketing costs. The brand has 380 user centers in operation across 218 cities as of the end of 2025, according to the report.
