Behind the Separation of Askar: Is Huawei Still a Lifesaver for Car Manufacturers?
On September 15th, the automotive industry was shocked by a major announcement: Askar Automobile and HarmonyOS Intelligence jointly declared that Askar’s product definition, design, marketing, channels, and services would now be primarily decided by Seres itself, with Huawei only responsible for providing “empowerment.” Although Askar remains a part of HarmonyOS Intelligence, Huawei will no longer be in charge of everything as it used to be.
This change marks a turning point in the nearly five-and-a-half-year partnership between Huawei and car manufacturers. Previously, it was widely believed that cars couldn’t be sold without Huawei’s involvement; now, people are asking: “Although Huawei’s technology is excellent, do car manufacturers really have to be tied to Huawei?”
To help you understand the behind-the-scenes reasons for this separation, let’s break down this “parting partnership” into five key aspects:
1. Why Did Huawei Need to Be So Involved in the Past?
To understand the current situation, we need to look at why Huawei decided to get so involved with car manufacturers in the first place.
As early as 2023, Huawei executive Yu Chengdong explained that Huawei focuses on “intelligent components” such as software, algorithms, and chips, rather than standardized parts like brake pads or tires. These elements require continuous upgrading, iteration, and close integration with car manufacturers.
If Huawei only sold its technology and car manufacturers failed to produce quality products, the huge R&D investments (about tens of billions of yuan annually) would not be recouped. Therefore, Huawei developed the HarmonyOS Intelligence model (originally called “Intelligent Selection Vehicle”), participating deeply in every aspect from product definition to sales.
In simple terms: Huawei believed that having technology alone was not enough; it also needed to ensure that cars were sold in large quantities to make a profit. Seres was the first to adopt this model, and it was a success—Askar, once an emerging brand, sold 1 million units in just 46 months.
2. Why the Change Now? Sales Volume and Costs Are the Main Reasons
If the previous model was so successful, why the change? There are two main reasons:
First, sales volume has peaked. Previously, Askar’s sales soared thanks to Huawei’s distribution channels. However, since 2026, HarmonyOS Intelligence’s overall sales have declined, with Askar’s sales in August dropping by nearly 50% year-over-year. This indicates that Huawei’s influence alone is no longer sufficient to drive continuous growth.
Second, Huawei’s “premium” value has decreased. Seres paid Huawei for hardware, technology licenses (2% of the car price), and marketing fees (8% of the car price), totaling 10% of the car price for each sale. When Huawei’s technology became more widely available to other manufacturers, car executives started to question the cost: “Is it really worth paying 10% of the car price for Huawei’s technology? Can’t we develop it ourselves or find a cheaper alternative?”
So, handing over the control to Seres is a compromise for both parties: Seres wants to regain brand autonomy and reduce its dependence on Huawei; Huawei, on the other hand, reverts to a role of “senior advisor,” continuing to sell its technology but no longer bearing full responsibility for Seres’ sales.
3. What Do Car Manufacturers Think Now? Huawei Is No Longer the Only Option
Previously, car manufacturers relied on Huawei as a lifeline; now, it’s just one of many options. Their attitudes vary:
- Pro-Huawei Camp: Brands like Lantu, Qijing (GAC + Huawei), and Yijing (Dongfeng + Huawei) believe that Huawei’s advanced driving technology offers the best experience and are willing to engage in deep cooperation to quickly build a positive reputation.
- Distant and Differentiated Camp: Brands like Avita and Changan, although major shareholders of Huawei, want to maintain their brand identity and control over core technologies, using their own systems to avoid being homogenized.
- Pragmatic Balance Camp: Most car manufacturers want to leverage Huawei’s strength while maintaining their independence. They don’t want to rely entirely on Huawei but also don’t want to risk everything.
4. How Does Huawei Respond? “I Have Seven Unique Capabilities That Others Don’t”
In response to the car manufacturers’ shifting attitudes, Huawei has highlighted its strengths.
In August 2026, Yu Chengdong emphasized that HarmonyOS Intelligence possesses six exclusive technologies, along with Huawei Terminal Business Group’s consumer-oriented capabilities, forming “seven capabilities that other cooperation models don’t have.”
In other words: Huawei is saying, “You can buy our driving chips and cockpit systems, but for a comprehensive solution from hardware to software to brand marketing, only our HarmonyOS Intelligence model will do. Other manufacturers can only get the individual components, not the overall experience.”
Huawei is signaling to car manufacturers that its presence is still crucial: even if it steps back, it still holds key advantages. If they want to offer high-end, intelligent products, they still need to work closely with Huawei.
5. The Final Conclusion: Is Huawei Still a Must-Have?
Returning to the initial question: Is Huawei still a necessary partner for car manufacturers?
The answer depends on what you mean by “must-have”:
- If you’re asking whether Huawei is the best choice for the best, most advanced driving experience, the answer is yes. Huawei’s Qiankun driving technology is still among the best in the industry, and many manufacturers rely on it to enhance their products.
- If you’re asking whether car manufacturers should rely entirely on Huawei for their brand’s success, the answer is no. As Huawei’s technology becomes more widespread, manufacturers realize the risks of over-reliance on a single supplier, including increased costs and brand homogenization.
In summary:
Five and a half years ago, Huawei designed a deep integration model to promote intelligent technology in cars, with Seres being the first beneficiary. Now, as the market has changed and technology has become more widespread, car manufacturers have matured. Huawei has shifted from a full-process leader to a core enabler, and Seres has regained control.
This marks a new phase in the Chinese automotive industry: Huawei’s technology remains valuable, but being a “must-have” partner is no longer a universal consensus. Each manufacturer makes this decision based on its own financial situation, brand strategy, and needs.
For consumers, this means more diverse, technologically advanced cars will be available, providing greater choice and more intense competition. In the end, it’s the consumers who will benefit the most.