Seres Takes Full Control of AITO Brand Operations as Huawei Steps Back to Enabler Role
nashnova research
Seres has formally taken over product definition, design, marketing, and retail channels for AITO, with Huawei retreating from lead operator to technology enabler. This means → the HarmonyOS Smart Mobility framework now hosts its first automaker-led brand, shifting the partnership from Huawei-centric control toward shared governance.
What exactly changed?
Product definition, design, brand marketing, retail channels, and after-sales service for AITO are now entirely led by Seres. Huawei's device unit shifts to a "participating enabler" role.
In plain terms = Huawei used to supply the tech *and* run the sales operation. Now selling the cars is fully Seres' job; Huawei only provides technology.
AITO stated the same day: existing owner rights and services remain intact, and its premium-luxury positioning is unchanged.
Why split now?
Seres posted a net loss attributable to shareholders of RMB 1.717 billion in H1 this year. August unit sales hit 20,652, down 49.68% year-on-year.
Chairman Zhang Xinghai noted in June that AITO faces a cost increase of RMB 15,000–20,000 per vehicle. This means → scale has been achieved, but per-unit profit margins are shrinking.
This reflects a core tension: the brand has grown large, yet profitability has not caught up. Taking over operations is, at its root, Seres demanding clearer visibility into its own economics.
What went wrong with shared stores?
Five brands sharing HarmonyOS Smart Mobility's retail channels made it impossible to track customer conversion by brand.
One person involved in the partnership told Chinese media: "You don't even know whose car a lead turned into." In plain terms = Brand A pays for the ad that brings a customer in, but the customer buys Brand B's car — Brand A's ad spend is wasted, and there's no way to trace it.
Seres management proposed "returning to dedicated, exclusive retail as soon as possible" as early as August 19. This announcement makes that direction official.
What will AITO's new channel look like?
AITO will build an independent sales network: company-owned stores, franchise stores, and select former HarmonyOS Smart Mobility outlets converted to AITO-only showrooms.
Sources say converted stores will display and sell only AITO models.
Seres will also require core suppliers to conduct dedicated development and dedicated production lines around AITO products, locking in differentiated capability under its own roof.
What happens to the other HarmonyOS brands?
LUXEED, STELATO, ZHIJIE, and SHANGJIE remain fully led by Huawei end-to-end. AITO is the first brand in the framework where the automaker takes the lead.
This means → the same partnership framework now accommodates two governance models — Huawei-led vs. automaker-led — with collaboration depth adjustable by brand capability.
Case in point, ZHIJIE: by August, its team spanning R&D, supply, and production had grown to roughly 6,000 people, with hundreds of Huawei staff working on-site daily — the Huawei-led brands are actually deepening integration.
Can this handover work?
Seres management acknowledged that H1 product iterations drew some user complaints. Going forward, protecting existing-owner interests will be written into the operations team's KPIs.
Management also set a target: each product generation should deliver at least a five-year "golden usage cycle."
In plain terms = AITO has accumulated a user base in the millions. Whether it can retain those users and convert scale into profit is the definitive test of whether this ownership handover holds up.
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