Visitors look at an AITO M8 on the 21st Shanghai International Automobile Industry Exhibition in east China's Shanghai, May 1, 2025. People visit the auto show here on the first day of the May Day holiday. (Xinhua)

Chinese tech giant Huawei and automaker Seres Group have announced an adjustment to their cooperation model for the luxury automotive brand AITO, a core brand within Huawei's Harmony Intelligent Mobility Alliance (HIMA).

AITO will explore a new cooperation model under the HIMA partnership framework, and the AITO brand will adopt an exclusive dealership model, according to a note sent to the Global Times on Friday. 

This new cooperation model represents an upgrade of the system, a concentration of resources as well as improved channel efficiency, helping drive value growth and win-win outcomes for partners. All existing rights and benefits of AITO owners, as well as subsequent services such as OTA upgrades, will remain unaffected, according to the company’s statement.

According to statements released by both sides on Monday, Seres will take the lead in product definition, product design, branding, retail channels and service systems, while Huawei will continue to provide support and empowerment through its consumer device business.

The announcements have sparked mixed reactions in the market, with some viewing it as a strategic upgrade and others worrying about potential dilution of the brand influence.

For now, the market appears divided: some are worrying that the restructuring could reduce the “Huawei halo” effect around AITO, while others believe the adjustment marks a more mature and sustainable phase in Huawei’s auto strategy.

As news of the shift circulated, some second-hand car dealers reportedly lowered their purchase offers for AITO vehicles. On the stock market, Seres’ A-shares and Hong Kong-listed shares fell sharply on the day the announcement was made, according to media reports.

At the same time, others argued that the adjustment should be understood as a “light-asset” strategy rather than Huawei’s retreat from the brand, adding that Huawei will continue to leverage its experience in consumer technology, smart mobility and ecosystem building to empower the brand.  
  
Analysts said the core issue is not simply a transfer of responsibilities, but how consumers perceive the brand after the partnership redefinition. For premium EVs, they noted, consumers are paying not only for hardware such as batteries, chassis and motors, but also for the trust and premium image built by brand association.

Huawei’s current cooperation model with automakers is still in a period of adjustment as both sides adapt to one another. Huawei and Seres were originally the closest partners within Huawei’s HIMA cooperation framework. Both companies are making adjustments partly because of their different corporate mindsets and partly due to Huawei’s broader strategic plans, Xiang Ligang, a veteran telecom and tech policy observer, told the Global Times on Friday.

Xiang believes cooperation between the two firms will continue to a certain extent, though the depth of collaboration may vary.

A Securities Times report said the adjustment represents a new exploration of Huawei’s HIMA model, under which the company has been deeply involved in the development and market operation of partner brands.

A source familiar with the matter told the Securities Times on September 15 that the new adjustment is “systematic and structural,” and aims to improve user experience while also helping boost Seres’ performance and deliver better returns to investors.  

Liu Dingding, a veteran industry analyst, told the Global Times on Friday that for Huawei, the move may be interpreted as a transition from “player” to “coach,” with the company increasingly positioning itself as a platform provider rather than a direct operator of auto brands under the HIMA framework.

Despite recent market concerns, Liu said the long-term impact will depend on whether Seres can build a stronger independent brand identity while maintaining Huawei-powered smart capabilities.

“If Seres can continue to improve its pricing and product strategies while building on its extended-range technology, it will still maintain its competitiveness and market momentum,” Liu said.

Under the HIMA model, in addition to Seres, Huawei also cooperates with JAC, SAIC, Chery, and BAIC, jointly developing other intelligent car brands including Stelato, Shangjie, Luxeed, and Maextro.

According to reports by IT Home, HIMA delivered 42,101 vehicles in August, with year-to-date deliveries up 10.8 percent year-over-year. To date, cumulative deliveries of the entire HIMA lineup have surpassed 1.52 million units.