Huawei's "Delegation of Power" to Askar: An In-depth Analysis of Interests, Balances, and Survival
Hello everyone, I'm your financial journalist friend. Recently, there's been quite a big buzz in the automotive industry: Could it be that Huawei and Seres (the parent company behind Askar) are about to go their separate ways?
To be precise, it's not a complete split, but rather Huawei is handing over the "steering wheel" to Seres. Previously, Huawei was leading the way for Seres, but now Seres will drive the ship on its own, with Huawei merely providing tools and support in the form of a brand endorsement.
This news has definitely raised questions: Is Huawei trying to shed a burden? Or has Seres become more independent? Today, we'll avoid using jargon and explain the logic behind this move, the intricacies of the interests involved, and the potential future directions in plain language.
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I. Core Summary: From "Arranged Marriage" to "Partnership in Management"
In one sentence: Huawei will no longer be deeply involved in Askar's daily car sales, marketing, or product development, handing over the control to Seres. Huawei will step back to a secondary role, focusing only on providing technical support and brand endorsement.
What does this mean?
Previously, Askar was like Huawei's "favorite child," with Huawei making all the decisions. Now, Askar has become more independent, with Seres taking the lead. This marks a shift in Huawei's approach to smart car development from strict control to a more flexible partnership. Although there's no official confirmation yet, Seres' previous investments in trademarks and equity indicate that both parties have been preparing for this transition.
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II. In-depth Analysis: Why is Huawei Delegating Power?
This is not just a battle between two companies; it's also a necessary move within the broader automotive industry context. We can break it down from four perspectives:
1. Seres' Anxiety to Become Independent: No Longer Wanting to Be a "Dependent Child"
Many think Seres is just a puppet of Huawei, but in reality, Seres has been striving for independence:
- Buying Freedom: In 2024, Seres spent 2.5 billion yuan to acquire 919 Askar trademarks and 44 patents from Huawei. This investment was worthwhile because it legally transferred the ownership of the Askar brand to Seres.
- Investing in Shares: Seres also invested 11.5 billion yuan to buy a 10% stake in Huawei's smart car technology company, "Yinwang." This makes Seres a shareholder and gives it direct access to Huawei's core technical team.
- Building Own Capabilities: Seres' research and development expenses surged by 70% in the first quarter of this year, as they worked on their own battery, motor, and control systems, as well as their own "Blue Power" brand.
In simple terms: Seres doesn't want to just earn a profit from assembly; they want to own the core technology and have their own brand identity. If they continue to rely on Huawei, most of the profits will go to Huawei, and Seres will have little say. With sales declining (83.96% year-on-year in August), Seres is eager to take control of its own destiny, as a strategic shift by Huawei could jeopardize Askar's success.
2. Huawei's Dilemma of Managing Multiple Brands: Limited Resources
Huawei now has five car brands: Askar, Zhijie, Xiangjie, Zunjie, and Shangjie. It's like having five stores, with Askar being the most successful, so Huawei invested all its best resources in it.
- Competitive Space: In Huawei's stores, Askar occupied most of the prime display space due to its popularity. Other brands like Zhijie and Xiangjie struggled to get any space. Chery (a partner of Zhijie) even had to set up its own customer centers because it felt neglected.
- Resource Allocation: With all five brands launching new cars, Huawei's resources for research, marketing, and distribution are stretched. Continuing to heavily support Askar could lead to resentment from the other brands.
- Balancing the Needs: Huawei needs to act as a neutral arbitrator, not both coach and player. By handing over Askar to Seres, Huawei can focus on the other brands more fairly.
In simple terms: Huawei can't continue to favor Askar just because it was more profitable in the past. With more brands to support, Huawei must balance their needs to avoid internal conflicts.
3. Internal Disagreements within Huawei: The Battle Between Yu Chengdong and Xu Zhijun
There are two different approaches to car development within Huawei:
- Yu Chengdong's "Smart Car Selection" Model (Deep Integration): Huawei is deeply involved in product definition, marketing, and sales, with Askar being a prime example. The advantage is efficiency and brand recognition; the downside is the heavy workload and business risks.
- Xu Zhijun's "HI Model/Yinwang" (Technology Provider): Huawei provides technology (chips, software, algorithms) without interfering in car manufacturing or sales. Companies like Changan, BAIC, and Seres (through Yinwang) use this model. The advantage is that Huawei can easily earn technology fees while serving multiple companies.
- Differences in Philosophy: Changan's chairman, Zhu Huarong, has publicly questioned the effectiveness of this model, suggesting that Huawei's involvement goes against automotive industry norms. This reflects dissatisfaction among other companies with Huawei's dominance.
In simple terms: There's a disagreement within Huawei: Yu Chengdong wants to expand and deepen its presence in the car industry, while Xu Zhijun aims to provide technology to as many companies as possible, acting more like a neutral technology provider.
4. The Survival Struggles of the Automotive Market:
In the first half of 2026, domestic car sales dropped by 21.1%, and price wars have become intense:
- Thin Profits: Cars are selling for less, so manufacturers are more sensitive to costs. If Huawei continues to charge high fees or take a large share of profits, Seres might find it unprofitable.
- Faster Decision-Making: In a competitive market, quick responses are crucial. By taking control, Seres can adjust prices, configurations, and marketing strategies more quickly without waiting for Huawei's approval.
- Risk Mitigation: If Askar's sales continue to decline, Seres can bear the risks on its own, reducing Huawei's financial burden.
In simple terms: With tough market conditions, companies are cutting costs. Seres believes it's better to control its own profits and make faster decisions without relying on Huawei.
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III. Future Prospects: Will Other Brands Follow Suit?
This delegation of power to Askar could trigger a chain reaction:
- Short-term Impact: Askar may face a period of adjustment as Seres builds its own marketing and service systems. Huawei's technical support will still be important, but the brand's direction may lean more towards Seres.
- Long-term Trend: Other brands (Zhijie, Xiangjie, Zunjie, Shangjie) are likely to seek more control from Huawei. Huawei may shift from a deep integration model to a lighter, asset-light approach, focusing on providing technology and brand endorsement.
- Huawei's Strategic Shift: Huawei will likely focus on managing its "Yinwang" company, becoming a true "smart car technology platform," providing the best technology while letting other companies decide how to market and sell their cars.
In simple terms: Askar is just the first to try this new model. In the future, Huawei might become like TSMC in the tech industry: providing the best technology, but letting other companies decide how to use it.
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IV. Advice for Consumers
1. Askar Owners: Don't Worry: Huawei's technology (such as the HarmonyOS cockpit and ADS intelligent driving system) will continue to be updated, and the brand endorsement will remain. However, future marketing and services may have a stronger Seres influence.
2. Watch for New Cars: In the coming year, all five brands will launch new cars. With more balanced resources, other brands (like Zhijie and Xiangjie) may receive more attention and support.
3. Rational View of Huawei's Influence: When buying a car, consider more than just whether it's a Huawei brand; also look at the manufacturer's manufacturing capabilities and after-sales service. Huawei is the "brain," but the manufacturer's quality is crucial.
In summary: The delegation of power between Huawei and Seres is not a break, but a sign of maturity. It marks a shift from a giant-dominated industry to one where multiple players coexist in a balanced ecosystem. Huawei's step back is for its long-term success, and Seres' independence is essential for its own survival. This is actually good news for the entire industry.