Huawei and Saisis "Splitting Up"? Don't Hurry—It's a Major Reorganization for Survival
Hello everyone, I'm your financial journalist friend.
On September 15th, the automotive industry was in an uproar. The news broke that Huawei and Saisis were going to adjust their partnership model. Previously, Huawei had the final say, but now it's Saisis that makes the decisions, with Huawei providing support. Many people's first reaction was: Is Huawei abandoning Saisis? Is Saisis going to go it alone?
Let's cool things down first: Don't be misled by the headlines. This is not a split; it's a redistribution of responsibilities, powers, and benefits.
To make this complex financial news understandable, I'll break it down in simple terms. We'll discuss why this change happened, who's getting what out of it, and how Saisis will move forward.
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I. Core Summary: What Just Happened?
In simple terms, **Askar (Saisis' brand) has gone from being a "showcase" for Huawei's products to becoming Saisis' own business.
- Previously: Huawei was responsible for product definition, marketing, sales, and after-sales service, while Saisis mainly focused on manufacturing the cars (like a high-end contract manufacturer).
- Now: Saisis will take charge of product development, marketing, sales, and after-sales service, with Huawei stepping back to provide technical support and empowerment.
- Result: Askar remains part of the HarmonyOS ecosystem, but its sales channels are independent, focusing only on Askar products.
- Market Reaction: Saisis' stock price plummeted because investors are worried about its ability to manage this new responsibility.
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II. In-Depth Analysis: Why This Change Now?
1. Saisis' Financial Strains: Need to Save Money
The most direct reason is money.
- Turning Losses into Profits: Saisis had a poor financial report in the first half of the year, incurring a loss of 1.7 billion yuan. Although its revenue was over 57 billion yuan, all of it was used to cover expenses.
- Rising Costs: The prices of chips and battery materials have increased, raising the cost of each car by 10,000 to 20,000 yuan.
- High Overhead: Saisis relied heavily on Huawei's sales channels, spending 24.1 billion yuan on advertising and store fees in 2025, with 95% of that going to Huawei.
- High Dependency on Huawei: Saisis' purchases from Huawei have increased from 14% to 33%. Although Huawei claims this is not profit-sharing, in reality, a significant portion of Saisis' profits goes to Huawei.
In simple terms: Saisis felt it was losing too much money. It was manufacturing cars but paying most of the costs—through sales, advertising, and store rentals—to Huawei. By taking control, Saisis hopes to save on these expenses and regain its profit margins.
2. Huawei's Strategic Focus: Need to Expand
Many think Huawei is abandoning Saisis, but the opposite is true. Huawei is strategically focusing on other areas.
- Huawei Doesn't Make Cars: Huawei emphasizes that it is a supplier, not a car manufacturer. By letting Saisis handle the heavy operational tasks, Huawei can focus on other areas.
- Diversifying Brands: HarmonyOS now includes multiple brands like Askar, Zhijie, Xiangjie, and Zunjie. Huawei can no longer devote 80% of its resources to Askar alone. It needs to distribute its resources to these other brands.
- Interconnected Interests: Saisis holds 10% of Huawei's Car Business Unit (Yiwang) shares. If Saisis succeeds, the value of these shares increases, benefiting both parties.
In simple terms: Huawei has multiple brands and needs to balance them. By handing over control to Saisis, Huawei can reduce its own operational burdens and focus on other areas.
3. Saisis' Preparation for Independence
This change wasn't sudden; Saisis has been making preparations for two to three years:
- Trademark Acquisition: In 2024, Saisis spent 2.5 billion yuan to buy the Askar trademark and patents, legally making Askar its own brand.
- Investment in Huawei: Saisis invested 11.5 billion yuan to acquire 10% of Huawei's Car Business Unit shares, strengthening their financial ties.
- Listing for Funds: Saisis went public on the Hong Kong Stock Exchange in 2025, using the funds to build its own sales channels.
In simple terms: Saisis knew this day would come. It bought the trademark, acquired shares, and prepared the necessary funds. With Huawei handing over control, Saisis is well-equipped to take on the new responsibilities.
4. Technological Competition: Need for Differentiation
Previously, Askar's strength lay in its exclusive use of Huawei's advanced technology. Now, Huawei's technology is available in many cars, reducing Askar's uniqueness.
In simple terms: Huawei's technology is becoming more widespread, and Askar can no longer rely on its former advantage. Saisis needs to establish its own brand identity.
5. Declining Sales: Forced Reform
Sales figures speak for themselves:
- Sales Drop: Saisis' wholesale sales increased by 10% in April but then dropped by about 50% in July and August.
- Disrupted Product Schedule: New car releases were delayed, and existing customers complained about upgraded configurations, indicating a disconnect between product development and market demand.
In simple terms: Sales were declining, and Saisis needed to change its approach to stay competitive.
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III. Three Challenges Ahead: Can Saisis Survive?
With control back, Saisis faces three major challenges:
Challenge 1: Can It Manage Its Own Channels?
- Current Situation: Saisis relied on Huawei's 700+ stores; it only has 380 user centers.
- Challenge: Building and managing its own stores is costly and requires significant investment.
- Risk: Saisis still has over 70 billion yuan in cash but has already spent 35 billion yuan this year. Rebuilding its channels could strain its cash flow.
In simple terms: Saisis needs to establish its own sales network, but does it have enough funds? If it fails to do so, it may lose its sales channels.
Challenge 2: Brand Recognition:
- Current Situation: Consumers bought Askar because of the "Huawei" brand. Without Huawei's support, will they still pay 500,000 yuan for a Saisis car?
- Risk: High-end brands rely on customer trust. If trust fades, Askar's premium image will be compromised.
In simple terms: Saisis needs to prove its value without the Huawei label.
Challenge 3: Profitability:
- Current Situation: Saisis is losing money and needs to spend on building channels.
- Challenge: The next two quarters are critical. Will new models like the M9, M6, and M7 boost sales? Can the new model strategy save costs?
- Projection: Analysts predict Saisis' net profit for 2026 may be only 880 million yuan (previously higher estimates). If new car sales are slow, Saisis may face further losses.
In simple terms: Saisis needs to balance spending on channels and saving costs while boosting sales with new products.
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IV. Conclusion and Outlook
This is not a split; it's a transition to independence. For Huawei, it means shifting from a "nanny" role to a "coach" role, focusing on other brands. For Saisis, it means becoming a brand owner with more control and profit potential, but also with greater operational risks.
Key Points to Watch:
- Profit Sharing: How much will Saisis save, and how much profit will Huawei give up?
- New Model Sales: How will the new models like the M9 and M6 perform under Saisis' management?
In conclusion: Askar has become Saisis' own business. The real test begins now: Saisis needs to prove it's more than just a car manufacturer—it needs to be a profitable brand that can sell well.
This battle has just begun.