In-Depth Analysis of Huawei and Seres’ “Reconfiguration”: It’s Not a Breakup, but a Struggle for “Independence”
Hello everyone, I’m your financial observer. Recently, there’s been significant news circulating in the automotive and financial communities: Huawei and Seres may be changing the way they collaborate.
In simple terms, Huawei used to act as the “full-service provider,” taking care of everything from car manufacturing and sales to after-sales support. Now, Huawei wants to shift to a more advisory role, handing over the reins to Seres.
Many netizens’ first reaction was: “Is Huawei pulling out?” “Will the Askar brand fail?”
Don’t worry; let’s keep things in perspective: This is still just media speculation; neither company has issued an official announcement. However, as professionals, we can see the underlying changes in business logic behind this potential shift. This isn’t just an internal adjustment for the two companies; it’s also a reflection of the Chinese new energy vehicle industry transitioning from a “traffic-driven era” to a “brand-driven era.”
Below, I’ll break down this reconfiguration into five key points to help you fully understand the implications.
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1. Core Change: From “Huawei in Charge” to “Seres Leading,” with Huawei Moving to a Supporting Role
[Plain Language Explanation]
The previous model was like “Huawei as the director and lead actor.” Huawei provided not only the technology (such as the HarmonyOS infotainment system and intelligent driving features) but also defined the car’s design, sales methods, and even the brand’s marketing strategy. Seres was more like the “gold medal contract manufacturer,” responsible for building the cars.
The new arrangement is that Huawei will become a “backstage advisor and technology provider.”
- Previously: Huawei would decide how the car should be designed, and Seres had to follow; Huawei would specify where the cars should be sold, and Seres had to comply.
- Now: Seres will decide what cars to produce, set prices, and manage marketing on its own. Huawei will provide technical support but no longer directly manage day-to-day operations.
[Why This Change?]
It’s similar to a chain of restaurants. Initially, the headquarters (Huawei) set the standards, trained the staff, and managed all operations, while the stores (Seres) just prepared the food. As the number of stores increased, the headquarters realized it couldn’t manage everything, so they decided to let the stores create their own menus and promotions, with the headquarters providing the essential technical foundation and quality standards.
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2. Fundamental Reason: Huawei’s Limited Resources and the Need to “Reduce Burden”
[Plain Language Explanation]
Many think Huawei is backing off because it’s not impressed with the Askar brand, but that’s completely wrong! The reason for the change is actually the success of the Askar brand. In 2021, when the HarmonyOS Intelligent Driving alliance was just starting, Askar was the star product. Huawei allocated its best resources, prime store locations, and the most media attention to it. This made Askar very popular.
But now Huawei has five brands:
1. Askar (Seres)
2. Zhijie (Chery)
3. Xiangjie (BAIC)
4. Zunjie (Jianghuai)
5. Shangjie (SAIC)
[Limited Resources]
- Store Space: Huawei’s stores are large, but they can’t dedicate prime space to every brand.
- Marketing Budget: Huawei can’t afford to spend the same amount on advertising for all five brands.
- Management Teams: Huawei can’t assign five top teams to manage each brand separately.
If Huawei continues to be deeply involved in every brand, it will become overwhelmed. Therefore, it needs to “decentralize” its efforts, focusing on technology development and platform building, allowing the car companies to compete on their own.
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3. Seres’ “Bittersweet Joy”: Taking Control Comes with the Risk of Losses
**[Plain Language Explanation]
For Seres, this change is both exciting and challenging.
The good news is that it finally gets to take charge independently. Seres has already invested 2.5 billion yuan in acquiring the Askar trademark and 11.5 billion yuan for a 10% stake in Huawei’s Yiwang Company, indicating its desire for independence. With Huawei’s backing gone, Seres can truly own its brand assets.
The challenge is that it now bears full responsibility for profits and losses. Let’s look at Seres’ financial report for the first half of 2026 (based on original data):
- Revenue: 57.493 billion yuan, a 7.87% decrease from the same period last year.
- Profit: It went from a profit of 2.941 billion yuan to a loss of 1.717 billion yuan.
- Research and Development Investment: 7.007 billion yuan, a 34.8% increase.
[Why Losing Money Despite High Revenue?
Car manufacturing is a capital-intensive business. Previously, Huawei helped with marketing, saving Seres a lot of advertising costs. Now, Seres has to manage marketing and set its own strategies. If it makes mistakes (e.g., setting high prices or misjudging the product lifecycle), it will face inventory buildup and asset depreciation.
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4. The Biggest Challenge: Do Consumers Recognize the “Askar” Brand or Just “Huawei”?
**[Plain Language Explanation]
This is the biggest question for Seres:
In the past, consumers bought Askar, thinking they were getting Huawei’s technology and driving experience. Askar was seen as “Huawei’s car.”
- The Trademark is Seres’; the Brand Recognition is Huawei’s.
Now that Huawei is stepping back, consumers may wonder:
- “If Huawei isn’t in charge anymore, is the car still reliable?”
- “Will Huawei’s new technology be prioritized for Askar or other brands?”
- “Do I buy Askar because I like its design or because I trust Huawei?”
If Huawei prioritizes its latest technology and features for other brands, Askar’s existing customers and potential buyers might feel neglected. Additionally, with multiple brands using Huawei’s technology, consumers can compare products. Seres needs to show that Askar has unique advantages beyond just the technology.
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5. Future Outlook: Not “De-Huawei-ization,” but “Symbiotic Evolution”
**[Plain Language Explanation]
It’s important to clarify that this isn’t a breakup or a complete departure from Huawei’s influence. The two companies are still closely connected:
1. Technical Cooperation: Askar will continue to use Huawei’s intelligent driving and HarmonyOS systems.
2. Equity Partnership: Seres holds a 10% stake in Huawei’s Yiwang Company, forming a shared interest.
3. Channel Collaboration: Askar will still be sold in Huawei stores, sharing Huawei’s customer base.
[The Real Logic: Clearer Division of Roles]
- Huawei’s Role: From a “全能 nanny” to a “top-tier technology partner.” Huawei focuses on developing advanced technology and building a robust platform for all partners.
- Seres’ Role: From a contract manufacturer to an independent brand operator. Seres is responsible for building quality cars, establishing a strong brand, and providing excellent customer service.
[Implications for Consumers and Investors]
- For Consumers: When buying an Askar, look beyond the “Huawei” label and consider the car’s overall quality, range, and after-sales service. Askar is evolving from a “Huawei concept car” to an independent luxury brand.
- For Investors: Watch whether Seres can maintain sales growth and profit recovery without Huawei’s direct support. If it can prove its viability, its value will shift from a “Huawei-related stock” to that of an independent car company.
In Summary:
Huawei’s step back is to allow all five brands to thrive. Seres’ goal is to prove that the Askar brand can stand on its own. Huawei has proven the feasibility of this model; now, Seres needs to demonstrate the brand’s independence. This journey is just beginning.