Why is Seres taking the lead at AITO?

On September 15, Harmony Intelligent Mobility Alliance (HIMA) announced that Seres would take the lead in AITO’s product definition, product design, brand marketing, retail channels and service system, with Huawei’s consumer business providing support. AITO remains within HIMA. The other four brands retain Huawei’s end-to-end leadership model, and existing customer rights and subsequent services are unaffected.^[1]

Seres will therefore have a more direct role in deciding which cars AITO makes, how they are sold and how customer relationships are maintained.

Start with the original partnership. In 2021, Seres and Huawei chose deep cooperation: Huawei participated in product definition, design and sales channels, while Seres contributed vehicle-manufacturing expertise.^[2] Commercially, that division could help a new brand quickly acquire technology, customer trust and distribution capabilities.

The conditions have now changed.

A larger brand makes operating authority more important

In 2024, Seres announced a RMB2.5 billion acquisition of AITO-related trademarks and design patents. In January 2026, AITO’s millionth vehicle rolled off the production line.^[2] Brand ownership and scale provide a foundation for taking on more operating functions.

Trademark ownership and operating leadership are different. The change can bring the brand, customer relationships and operating accountability closer together. It does not prove that both parties had already planned this change in 2024.

Profit pressure makes efficiency more urgent

In the first half of 2026, Seres reported revenue of RMB57.493 billion, down 7.87% year on year, and a net loss attributable to shareholders of RMB1.717 billion. Its interim report cited higher raw-material prices, changes in product mix and transitions between major model generations, among other factors. Gross margin fell to 23.3%.^[3]

My inference is that the company needs more direct control over product timing, marketing spending and channel efficiency. Whether greater autonomy improves profits depends on execution. The loss cannot currently be attributed directly to fees paid to Huawei; taking over distribution does not make store, staffing or customer-acquisition costs disappear.

More Huawei partners mean different priorities

The announcement changes only AITO’s arrangement; the other four brands retain their existing model.^[1] Seres is primarily concerned with AITO’s sales, profitability and customers, while Huawei must consider the product portfolios and overall development of several brands.

With more brands, allocating showroom space, sales attention and communications resources becomes more complex. Giving AITO more operating responsibility may reduce coordination costs. Public information is not sufficient, however, to confirm resource allocation as a direct cause of the change.

Seres gains room to act and a more complete business challenge. It must demonstrate that it can consistently define compelling products, sustain a premium brand and acquire customers at a reasonable cost. AITO has also proposed dedicated brand operations and channels; the handover’s actual performance merits attention.^[4]

Huawei can test alternative divisions of responsibility. If a mature brand remains competitive with less direct operating involvement from Huawei, the partnership model gains more options. If performance weakens, it may expose dependence on the previous system. This is an assessment of possible consequences, not a stated Huawei objective.

Huawei’s different roles must also be distinguished. Operating involvement by its consumer business and automotive intelligence supplied by Yinwang are different layers of cooperation. Seres signed an agreement to acquire 10% of Yinwang; a subsequent annual report disclosed completion of equity registration and payment of the full consideration. This illustrates the continued link through technology and capital.^[5][6]

• A smooth channel handoverCan store coverage, the sales experience and aftersales support be maintained?
• Continuing orders for new modelsWatch customers’ acceptance of the products and the AITO brand itself.
• Improving selling expenses and profitTest whether greater autonomy translates into operating efficiency.

As of the September 15 cooperation statement used for this issue, complete new fee arrangements had not been disclosed. It is therefore not possible to calculate how much the change could save Seres.