Seres Acquires Aito Brand from Huawei in Strategic Move

Seres Acquires Aito Brand from Huawei in Strategic Move

Chinese automaker Seres has acquired the Aito brand and its associated intellectual property from Huawei for $344 million. Launched in 2021, Aito represents Huawei’s most successful collaboration with a car manufacturer to date.

Huawei’s Multifaceted Approach to Automotive Technology

Huawei employs a three-tiered strategy for its involvement in the automotive industry. At the foundational level, Huawei supplies car companies with components such as Lidar and electric motors.

The second tier focuses on intelligent cockpits and driving solutions, with Huawei abstaining from vehicle production or sales.

The most comprehensive tier is the Harmony Intelligent Mobility Alliance (HIMA), where Huawei collaborates on design, production, sales, and after-sales stages, stopping short of actual car manufacturing. Aito operates under this HIMA model.

Deal Focuses on Ownership Shift

The agreement includes the transfer of 919 trademarks and 44 design patents previously owned by Huawei. Although these assets were valued at a significant 10.2 billion yuan in May 2024, the deal primarily aims at transferring ownership with minimal disruption expected for Aito’s daily operations.

This move follows Huawei’s recent decisions to transfer the Stelato trademark to BAIC New Energy in May and the Luxeed name to Chery last month.

Aito’s Continued Success

Aito has emerged as the leading brand within HIMA, delivering 46,141 vehicles in June. Sales data indicate a consumer preference for higher-priced models, with the M9 selling 17,241 units compared to 18,493 for the M7. The smaller and more affordable M5 saw sales of only 7,046 units.

Business Continuity Emphasized

Both Seres and Huawei are committed to maintaining Aito’s current operations. Huawei continues to position itself as a technology provider to automakers, without plans to enter car manufacturing. Speculation suggests this acquisition may pave the way for Aito’s international expansion.