Chongqing - Chinese automaker Seres announced plans on July 2 to acquire the "AITO" Chinese trademark and certain design patents from Huawei and its affiliates for 2.5 billion yuan (USD 340 million), with the assets valued at 10.23 billion yuan. This move aims to consolidate Seres' brand assets for long-term development.

AITO is one of the most popular EV brands in China. (Photo/Seres)

Chongqing-based Seres, Huawei's first deep automotive industry partner, began collaborating in April 2021. This partnership created the Huawei "Smart Selection Car" model, with Huawei heavily involved in product definition, design, research and development, and quality control. These vehicles are sold in Huawei's stores.

This acquisition will unify the two trademarks under SERES. In December 2021, Huawei and SERES launched the "AITO" brand, known as "Wenjie" in Chinese. Sources reveal that Seres owned the English trademark "AITO," while Huawei held the Chinese trademark "Wenjie."

SERES informed Bridging News that clarifying the ownership of the AITO brand benefits long-term development. "With complete brand assets, Seres can provide better and more consistent services to users."

Industry analysts suggest that Huawei has recently been transferring its Smart Selection Car trademarks to partners, indicating its intention to divest all transportation-related trademarks to vehicle manufacturers. This move aligns with Huawei's stated "Huawei does not make cars" strategy.

In its July 2 statement, Seres assured that the transaction would not affect joint business operations, and both companies intend to deepen their collaboration. Huawei confirmed the transaction would not impact their cooperation and reiterated its commitment to supporting car manufacturers in building and selling quality vehicles.

Among the various brands partnering with Huawei, the AITO models have demonstrated strong market performance. Financial reports reveal that Seres achieved a revenue of 35.84 billion yuan in 2023. In the fourth quarter, the new Wenjie M7's sales surged, contributing 19.16 billion yuan to the total revenue.

The surge in Wenjie brand sales and higher pricing has improved SERES's performance. Despite a net loss of 4.8 billion yuan in 2023 after non-recurring gains, SERES achieved a revenue of 26.56 billion yuan in the first quarter, up 421.8% year-on-year, and a net profit of 110 million yuan, an increase of 1.04 billion yuan year-on-year.