Seres Takes Full Control of AITO Amid Stock Drop

Seres has officially taken over the strategic management of its AITO brand, ending a period of heavy reliance on Huawei’s ecosystem. This structural shift, announced by the Harmony Intelligent Mobility Alliance, places full responsibility for product design, marketing, and retail channels directly with Seres. While the move is intended to grant the manufacturer greater autonomy, it has immediately raised questions about the brand's ability to compete without Huawei’s brand cachet and infrastructure.

The financial markets reacted swiftly to the announcement. On the day the news broke, Seres’ A-share price fell by over 5 percent, while its H-share dropped by more than 6 percent. The company’s total market value has since fallen below 80 billion yuan, a stark decline from a peak of nearly 300 billion yuan earlier in the year. Investors appear skeptical that Seres can maintain its market position now that the partnership model has fundamentally changed.

High costs drove the restructuring

The decision to restructure the relationship was driven largely by unsustainable financial pressures. Under the previous model, Seres paid substantial fees to Huawei, including technology licensing and channel marketing charges that collectively amounted to 10 percent of the vehicle price. Additionally, Seres procured significant hardware components, such as intelligent driving systems and cockpit interfaces, directly from Huawei.

According to data reported by 36kr.com, these costs have grown significantly. Between 2022 and 2025, Seres paid over 1.1 trillion yuan to the Huawei system. By 2025, this expenditure represented more than one-third of Seres’ total revenue. This heavy outflow of capital contributed to the company suffering cumulative losses from 2021 to 2023, making the previous cooperation model financially unviable for long-term sustainability.

Retail channels face operational split

The separation also affects how vehicles are sold to consumers. Reports indicate that starting January 1, 2027, Huawei’s exclusive stores will be divided into two distinct categories. One type will sell AITO vehicles exclusively, while the other will handle other brands within the ecosystem. Seres has denied rumors that AITO is completely withdrawing from Huawei stores, clarifying that the change is a reorganization of store operations rather than a total exit.

This operational split creates a trade-off for the brand. On one hand, Seres gains control over its retail experience and customer service. On the other hand, it loses the high-traffic, high-visibility advantage of being housed within Huawei’s flagship locations. The challenge now is whether AITO can drive foot traffic and build brand loyalty independently, a task that proves difficult when sales have recently declined and profits have turned negative.

Market confidence remains fragile

Analysts and investors remain cautious about Seres’ future performance. The stock price decline reflects a broader concern that without Huawei as a central brand anchor, AITO may struggle to maintain its premium positioning. The market is questioning whether Seres can fill the void left by the reduced Huawei involvement, particularly in a competitive electric vehicle landscape where brand recognition is a key driver of sales.

The situation presents a critical test for Seres’ management. They must now demonstrate that they can define products and manage marketing effectively on their own. The success of this transition will depend on their ability to reduce costs while maintaining the quality and innovation that attracted customers in the first place. The coming months will reveal whether this independence is a strategic advantage or a risky gamble.