Seres and Huawei Go Their Separate Ways: A Rite of Passage for Survival and Growth
Hello everyone, I'm your financial journalist friend. Today, we're talking about a major event in the automotive industry that occurred on September 15th: there has been a significant adjustment to the cooperation between Seres and Huawei regarding the Askar brand.
In simple terms, previously, Huawei was leading the way for Seres, but now Seres is taking the lead, with Huawei providing support. As soon as the news broke, Seres' stock price plummeted, causing a stir in the market, and there were even rumors that Seres had been " kicked out of the family." However, this is not a breakup but a well-thought-out separation of responsibilities.
To help you fully understand the logic behind this move, its impacts, and the future direction, I've broken down the news into five key points and explained them in plain language.
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1. What exactly happened? Separation doesn't mean divorce
First, let's clear up the biggest misunderstanding: Askar has not been abandoned by Huawei, nor has it been excluded from the HarmonyOS Intelligent Driving family.
The core of this adjustment is the transfer of leadership:
- In the past (led by Huawei): Huawei decided how Askar's products were designed, sold, promoted, and the stores were set up. Seres was mainly responsible for manufacturing the cars, essentially acting as a "super contract manufacturer."
- Now (led by Seres): Starting from now, Seres will be in charge of defining, designing, marketing, selling, and servicing Askar's products. Huawei's role has shifted to that of a provider of core technologies (such as the HarmonyOS cockpit and Qiankun intelligent driving systems), but it will no longer get involved in the day-to-day operations.
Why is it called a "separation of responsibilities"?
Think of it this way: Before, Huawei was the chef, and Seres was the assistant. Huawei decided how the dishes (products) were prepared and when they were served. Now, Seres has become the chef, buying the ingredients and cooking the meals, while Huawei acts as a senior advisor, providing exclusive ingredients (technologies) and kitchen equipment (channel support).
Key changes:
- Independent channels: Askar will have its own exclusive stores. Previously, Askar, Zhijie, and Xiangjie products were sold together in HarmonyOS Intelligent Driving stores. Now, Askar will have its own stores that will only sell Askar products.
- Return to identity: Seres has regained its full status as a car manufacturer, no longer just a shell of Huawei.
Market reaction:
Although the official statement clarified that there is no breakup, the market was still panicked because people feared that Askar's success was due to the Huawei brand. With the brand still there but the leadership changed, consumers wondered if they would continue to support the product. The drop in the stock price reflects this concern.
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2. Why the need for this separation? The hidden challenges for Seres
Many people are wondering why there was a change when the cooperation was going so well. The reason is that Seres had to take this step for its own survival:
1. Thin profits and high risks
Despite the success of Askar's sales, Seres didn't profit much.
- Money flowing to Huawei: Data shows that from 2022 to 2025, Seres paid Huawei 111.3 billion yuan in purchases, accounting for nearly 30% of its revenue. On average, about 130,000 yuan from each car sold went to Huawei.
- Risks borne by Seres: Huawei settled payments based on orders, but Seres had to bear the risks of rising原材料 costs, price wars, and inventory depreciation. It was like relying on Huawei for stability, with Seres constantly on the edge.
2. The automotive industry's downturn requires self-help
In the first half of 2026, the domestic car market cooled down, leading to a sharp decline in sales and profits. Seres already suffered a loss of 1.7 billion yuan in the first half of 2026, and its sales in August were halved year-on-year.
- Soaring costs: The prices of chips and lithium carbonate have skyrocketed, increasing the cost of manufacturing by 15,000 to 20,000 yuan per car.
- Eroding margins: Previously, the Askar brand helped sell products at higher prices, but with more competitors and fierce price wars, Seres needs to control marketing and channels to maintain its profit margins.
3. Getting rid of the "contract manufacturer" label
Seres wants to shed the label of being a "Huawei contract manufacturer" and build its own brand strength, making Askar its own brand, not just a extension of Huawei's. This is a necessary step towards independence.
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3. Huawei's strategy: From favoritism to shared benefits
This adjustment is also a move for Huawei:
1. Limited resources need to be allocated
HarmonyOS Intelligent Driving has expanded from focusing on Askar to including five brands: Askar, Zhijie, Xiangjie, Zunjie, and Shangjie.
- Previously: Huawei invested all its best resources in Askar, making it a hit product.
- Now: The other four brands (Chery, BAIC, Jianghuai, SAIC) are also growing and need Huawei's support. If Huawei continues to focus on Askar, the other brands will be neglected.
- Strategy: By letting Seres manage Askar, Huawei can allocate its resources to the other brands, promoting their growth and maintaining a balanced ecosystem.
2. A more profitable business model for Huawei
Huawei focuses on selling technology and solutions rather than cars.
- Comparing sales and technology: Selling a 200,000-yuan car may only yield a 3,000-yuan net profit for the manufacturer, but selling an advanced intelligent driving system can generate 30,000 to 50,000 yuan per car.
- Results: Huawei's intelligent driving business has already turned a profit, with revenue growing by 72% in 2025 to 45 billion yuan. By letting car manufacturers compete on their own, Huawei can earn a higher profit from technology licensing.
3. Avoiding brand ownership disputes
SAIC's past concerns about "giving away the soul of the brand" reflect the anxieties of traditional car companies. Now that Seres has taken back control, this dispute has been alleviated, making the partnership more equal and healthy.
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4. Seres' future: Walking on two legs
This separation is both a crisis and an opportunity for Seres. It is trying to develop on two fronts:
First leg: Askar (relying on Huawei's ecosystem):
- Continued cooperation: Askar will still use Huawei's Qiankun intelligent driving and HarmonyOS cockpits, which are its core strengths.
- Brand independence: Seres aims to establish a unique brand identity through exclusive stores and independent marketing.
- Product expansion: Seres plans to launch more car models, such as sedans and MPVs, to diversify its product line.
Second leg: AIVA (a completely independent new brand):
- Moving away from Huawei: Seres is supporting a new brand, AIVA (formerly known as Landian Technology).
- Technological combination: This brand will use ByteDance's Dabao model, YuanRongQing's intelligent driving systems, and CATL's batteries.
- Purpose: To test Seres' ability to survive without Huawei's support and to cater to different price ranges and consumer needs, reducing its reliance on Huawei.
Third leg: Going global:
Askar is working to meet the strictest German certification standards, aiming for one-third of its sales to come from overseas. With different brand recognition in foreign markets, Seres needs to build its international presence.
Advantages and confidence:
Seres is not unprepared. It has a million users, about 400 user centers, and a cash reserve of over 73.1 billion yuan, giving it the confidence to operate on its own.
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5. What should consumers and investors think?
For consumers:
- Short-term concerns: There may be concerns about the quality of service and product design after the leadership change. After all, Huawei's quality control and marketing skills have been proven by the market.
- Long-term expectations: If Seres can establish its own brand, Askar may become more distinctive and offer a more personalized experience. Exclusive stores could also lead to better service.
- Advice: There's no need for excessive panic. Huawei's technologies (intelligent driving, cockpit) will still be available, which are key selling points for Askar. As long as the product quality remains strong, the change in brand ownership should not significantly affect daily use.
For investors:
- Short-term fluctuations: The stock price drop reflects concerns about whether Seres can establish its own brand strength. In the short term, Askar's sales and profits may be affected as it adapts to the new leadership.
- Long-term logic: If Seres can break away from the "contract manufacturer" label and build its own brand value, its valuation could shift from a "Huawei concept stock" to an independent car company, potentially increasing its long-term value.
- Risks: Investors should watch Seres' ability to control costs and marketing efficiency under the new model, as well as the progress of the new AIVA brand. If both fronts fail, it could be risky.
In summary, the separation of Seres and Huawei is a sign of maturation after seven years of cooperation. Seres has taken over the responsibility and must now cook its own meal. If it succeeds, it could become a benchmark for independent car companies; otherwise, it may end up in a difficult position without the Huawei brand's advantage or its own strength.
This is a rite of passage for survival and growth, and only time will tell what the outcome will be.