Workers inspect vehicle exteriors, interiors and other components at a Seres factory. (Photo/Chongqing Daily)

Chongqing - Huawei and Seres enter a new phase in their automotive partnership after more than five years of close cooperation.

On September 15, Harmony Intelligent Mobility Alliance, or HIMA, and AITO said AITO would adopt a new cooperation model under the HIMA framework. Seres will lead product definition, product design, brand marketing, retail channels, and services, while Huawei will continue to provide support.

The two sides stressed that AITO remains part of HIMA and that existing customer rights and after-sales services will not be affected. The adjustment does not apply to HIMA’s other brands, which will continue under Huawei-led cooperation models.

The changes affect sales channels. According to a letter AITO sent to its channel partners, starting September 16, the signing entity for authorized dealer service agreements will shift from Huawei to Seres’s affiliated company. Seres will also handle service-fee settlements and related matters for orders placed from that date. AITO has also said it will adopt a dedicated, brand-exclusive sales model.

The adjustment also covers multiple areas, including product definition, brand marketing, giving Seres greater control over AITO’s operations.

The two companies began deep cooperation in the auto business in 2021. In April that year, the Seres-Huawei Smart Selection SF5 entered Huawei’s retail network. AITO launched its first model, the M5, in December.

Under the partnership, Huawei took a deep role in product definition and retail sales and provided technologies including intelligent driving technology and cockpits, while Seres focused mainly on vehicle development, manufacturing, delivery and services.

AITO then rapidly expanded its lineup to include the M5, M7, M8 and M9. In 2024, Seres sold 426,900 new energy vehicles and posted net profit attributable to shareholders of 5.95 billion yuan (887.07 million U.S. dollars), reversing a loss from the previous year. In January 2026, AITO’s one-millionth vehicle rolled off the production line at Seres’ Super Factory in Chongqing.

The partnership has also expanded from business cooperation into capital ties. In 2024, Seres began acquiring a 10% stake in Shenzhen Yinwang Intelligent Technology from Huawei for 11.5 billion yuan. The stake transfer was completed in March 2025, with the full payment completed in September that year.

The latest adjustment comes after AITO crossed the 1-million-vehicle mark. The brand now has a relatively complete product lineup and a sizable customer base and has entered a more mature stage of development, creating room for the two companies to redefine their operating roles.

Seres, meanwhile, has seen weaker financial and sales performance this year. Revenue fell 7.87% year on year to 57.49 billion yuan in H1 2026, while the company posted a net loss attributable to shareholders of 1.72 billion yuan. New-energy vehicle sales totaled 227,300 units in the first eight months, down 12.58% from the same period last year.

Seres said in its interim report that the revenue decline mainly stemmed from key models entering a product transition period in the second quarter. Profitability was also affected by temporary price increases for key components and asset impairment charges.

A step toward full-cycle auto operations

According to China Securities Journal, Seres’ operating pressure was one factor behind the change in the partnership. The new model gives Seres greater operational autonomy, but also requires the automaker to take on more market and business risks independently.

Another factor is the expansion of HIMA’s brand portfolio. As HIMA moves into a multi-brand phase, Huawei needs to allocate its product, marketing and retail resources across more partner brands. Giving the more established AITO greater operational independence could also help it build a clearer brand and sales structure.

For Seres, the new model brings more customer-facing and operating functions into its own system. A significant share of AITO’s customer touchpoints previously sat within Huawei’s retail network.

Under the new arrangement, Seres can gain more direct access to orders, sales channels and after-sales feedback, and use that information to improve products, pricing and services, helping it build a more complete operating structure as an automaker.

Greater control also comes with greater responsibility. Huawei has contributed not only intelligent driving and cockpit technologies, but also brand influence, store traffic, and marketing capabilities.

As more operating responsibilities shift to Seres, its spending on store operations, staff training, brand marketing and after-sales services could rise. At the same time, its exposure to brand and operating risks will also increase.

The impact of the new cooperation model can be tracked through several indicators, including the competitiveness of upcoming AITO models, traffic at dedicated stores, whether Huawei’s technology upgrades remain synchronized with AITO products, and changes in Seres’ gross margin and operating cash flow.