Huawei and Saisis "Breaking Up"? Don't Worry, It's Actually a "Rite of Passage" in the Automotive Industry
Hello everyone, I'm your financial journalist. Today, let's talk about the big news that made waves in the automotive industry on September 15th: There has been a significant adjustment to the cooperation between Huawei and Saisis, with the control of the Askar brand being transferred from Huawei to Saisis.
Many car enthusiasts and investors' first reaction was: "Is Huawei pulling out?" "Will the HarmonyOS-based partnership dissolve?" "Is Askar going to decline?"
Let me reassure you: The car remains the same; Huawei's technology is still there, it's just that the logic of who makes the decisions and how the profits are distributed has changed. It's like a couple moving from a situation where one person takes care of all household chores to one where both partners are responsible for their own tasks, but they still live under the same roof.
Below, I'll break down this situation into five key points to help you fully understand what's happening.
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1. What exactly happened? From Huawei being the "nanny" to Saisis taking the lead
Previously, when people bought an Askar, they thought, "This is a Huawei car, personally supervised by Yu Chengdong."
Now, according to official statements, Saisis is in charge of product definition, design, brand marketing, sales, and after-sales services; Huawei only provides technical support (such as intelligent driving and infotainment systems).
In simple terms:
- Under the HarmonyOS-based partnership: Huawei was like the "chief director, producer, lead actor, and marketer," while Saisis was just the "set crew." If the movie was a success, the audience would credit the director for the success and the director would get most of the profits.
- Under the new, lighter-asset model: Saisis has become the "producer and lead actor," deciding what to produce, how to market it, and how to sell it. Huawei has become the "top-tier special effects provider," offering the best technology and charging for its use.
The key point: This adjustment only applies to Askar. The other brands (Zhijie, Xiangjie, Zunjie, Shangjie) and the partnerships with Huawei's Qiankun still follow Huawei's lead. So, the HarmonyOS-based alliance hasn't dissolved; it's just that Askar wants to operate more independently.
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2. Why does Saisis want to take the lead? Because it's getting too expensive and they want to make more profits on their own
How has Saisis fared in recent years? In one sentence: It thrived because of Huawei, but it has also suffered because of Huawei.
- They've made money, but with effort: Saisis did well in 2024 and 2025, with annual net profits of around 6 billion yuan. However, in the first half of 2026, due to a poor market and rising原材料 costs, it lost 1.7 billion yuan.
- They've paid too much to Huawei:
- They spent 2.5 billion yuan to buy the "Askar" trademark.
- They invested 11.5 billion yuan in Huawei's automotive business.
- They spent an estimated 56 billion yuan on components from Huawei (chips, batteries, intelligent driving systems, etc.) in 2025.
- They also had to pay Huawei substantial marketing and distribution fees (estimated at 13.3 billion yuan).
Doing the math: A large portion of Saisis' profit from each car sale might go to Huawei. Although the Askar brand is now high-end, Saisis thinks, "I bought the brand and built the car; why should Huawei still have control over marketing and pricing?"
Saisis' plan: By taking back control, they can keep more of the profits through their own channels and marketing strategies. After all, Huawei has already established its brand reputation, and it might be more cost-effective for Saisis to maintain and expand it on its own.
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3. Why is Huawei willing to let go? Because it has more options and doesn't want to take the blame
Huawei's decision to step back seems like a loss, but it's actually a smart move.
- Huawei doesn't lack "children": It already has several brands (Askar, Zhijie, Xiangjie, Zunjie, Shangjie, Qijing, Yijing, Huajing). Although Askar was the first and most successful, the other brands are also growing rapidly. If Saisis develops models that Huawei doesn't approve of or becomes too aggressive in marketing, Huawei doesn't want to limit its overall strategy for one brand.
- Huawei can still make money by providing services: Its subsidiary, Yiwang (the main provider of intelligent vehicle solutions), is already profitable. This means Huawei can earn money by selling its technology without directly selling cars. Being a technology provider carries less risk—if cars don't sell well, it's the car companies' problem, not Huawei's.
- Avoiding accusations of manufacturing cars: Huawei has always emphasized it doesn't want to manufacture cars. Although the HarmonyOS-based partnership involved its deep involvement, there were continuous doubts. With Askar returning to being led by a traditional car company, Huawei reverts to its role as a technology provider, which aligns with its commitment and reduces policy and public pressure.
In simple terms: Huawei used to be the one cooking the meals; now it thinks selling kitchen utensils and spices is more convenient and profitable, and it can supply multiple companies. If Askar wants to cook on its own, Huawei says, "Okay, I'll sell you the utensils, but don't expect me to watch you every day."
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4. What does this mean for consumers? Will the quality of the cars decline?
This is what everyone is most concerned about.
- In the short term, the experience won't change: Huawei's core technologies (HarmonyOS infotainment, ADS intelligent driving) will still be in the Askar cars. Huawei's technical strength remains unchanged.
- In the long term, the brand will become more independent: Askar will be more like an independent car brand, not just a "Huawei subsidiary." This means:
- More flexibility in products: Saisis can adjust models, configurations, and prices more quickly based on market feedback without having to consult Huawei.
- More localized services: With Saisis in charge of after-sales and distribution, they can provide services that better fit the Askar brand's identity.
- Risks: If Saisis' operations fail or Huawei's technology updates lag behind other brands, Askar might lose some of the premium value associated with the Huawei brand. However, since Askar has already built its own brand recognition, this risk is manageable.
In one sentence: You're still buying a car with Huawei's technology, but in the future, its name will likely include "Saisis" more often than "Huawei."
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5. The deeper implications: Huawei's "final choice" hasn't been made, but its path is narrowing
This adjustment is an important test for Huawei between focusing on car manufacturing and being a technology provider.
- Short-term tactics vs long-term strategy: After being sanctioned, Huawei urgently needs new businesses to replace its declining smartphone business, so it chose a model that can quickly generate revenue by helping car companies produce good cars. But in the long run, intelligent vehicles are the next major smart device, and controlling both software and hardware while providing brand value is key. Is Huawei really content to just be a supplier?
- Homogenization risk: Currently, all brands under Huawei's umbrella use similar technology, which can confuse consumers. If all brands rely on the "Huawei" name, the brand's value could be diluted. Askar's independence helps to differentiate the brands.
- Future possibilities: Huawei's decision not to manufacture cars is only valid until 2028. This adjustment might be a preparation for future strategic shifts. If Huawei decides to enter the car-making business directly or gain more control over its brands, the lighter-asset model for Askar could just be a transitional phase.
Conclusion:
Huawei and Saisis aren't "divorcing"; they're moving from a "completely arranged marriage" to a "contractual marriage." Saisis has gained more freedom and profit margins, while Huawei has a clearer role as a technology provider with more brand options.
Impact on the industry: This marks a new phase in Chinese intelligent vehicle cooperation—moving from a Huawei-led model to a diversified pattern where car companies take the lead with Huawei providing support. In the future, we might see more car companies adopting similar models that benefit from Huawei's technology while maintaining brand independence and profit margins.
Advice for investors: Pay attention to Saisis' future operational efficiency and cost control, as well as Huawei Yiwang's technological progress. The two are still closely linked, but the profit distribution is now more balanced.
Advice for consumers: Buy with confidence. Askar is still a quality car, and Huawei's technology will still be included. It's just that in the future, you'll need to refer to it as "Saisis Askar," not "Huawei Askar."