Seres takes control of Aito brand from Huawei alliance

New energy vehicle (NEV) maker Seres Group Co. Ltd. (9927.HK; 601127.SH) has taken full control of its Aito brand from partner Huawei, the pair announced on Tuesday. The move sharply curtails Huawei’s influence in an alliance dating back to 2021, when it signed up Seres as the first partner for its new smart car business.

The shift will end Huawei’s dominant role in the Aito brand’s product design, development, marketing and sales, financial media Caixin reported. The partnership was one of the most successful for Huawei under its Harmony Intelligent Mobility Alliance (HIMA), which saw the company provide smart car design and technology services to other brand owners.

Other brands operating under the alliance include Chery Auto and SAIC.   

But those brands have faced growing profitability challenges while working within Huawei’s smartcar ecosystem. Despite the change, Seres will remain a member of HIMA, with Huawei transitioning to a supporting role. That will give Seres more flexibility to choose its own component suppliers, which could help to reduce its costs, a source familiar with the matter told Caixin.

Seres reported its revenue fell 7.9% in the first half of 2026 to 57.4 billion yuan ($8.55 billion) from 62.4 billion yuan a year earlier. It swung into the red with a loss of 1.72 billion yuan in the latest six-month period from a profit of 2.94 billion yuan a year earlier.

Seres’ Hong Kong listed stock was up 4.3% at HK$34.94 in late Thursday morning trading, while its Shanghai-listed shares were up 3.7% at 47.18 yuan. Both stocks are down more than 60% this year.

By Doug Young

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