Huawei and Seres "Break Up"? An Ultimate Experiment on Brand Independence and Traffic Dependency
Hello everyone, I'm your financial observer. The biggest news in the automotive industry recently is the announcement made by Huawei and Seres (the parent company of Askar) on September 15th. Although the official wording was mild, suggesting "exploring new cooperation models," it's clear to anyone with a discerning eye that these two "old partners" are going their separate ways, at least in terms of operational control.
Previously, Huawei was the one leading the way for Seres, but now Seres is taking the helm on its own. What does this really mean? What impact will it have on consumers? And what message does it send to the industry? Today, we'll avoid using jargon and break down this situation in simple terms so everyone can understand.
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I. Core Summary: From a "Arranged Marriage" to Independence
In simple terms, the core of this adjustment is the transfer of power:
- In the past (2021-2026): Huawei was the "chief director." They were responsible for deciding who the cars were sold to, how they looked, how they were designed, sold, and maintained. Seres was more like a "high-end contract manufacturer" and executor.
- As of September 15, 2026: Seres has become the "manager." Askar is now in charge of product definition, design, brand marketing, retail channels, and after-sales service. Huawei has stepped back, focusing on providing technology, such as intelligent cockpit systems.
- The Biggest Change: Starting from January 1, 2027, Askar will officially withdraw from Huawei's official stores and the HarmonyOS Smart Driving channels. In Huawei stores, you will still find models like Zhijie, Xiangjie, Zunjie, and Shangjie, but not Askar.
Although both parties have stated that Askar remains a core member of the HarmonyOS Smart Driving family, the physical separation of their products means a psychological distance that many would consider a "breakup."
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II. Why the Separation?
1. Seres' "Anxiety": Sales Halved, Losses, Need for Self-Saving
The direct trigger for this separation was financial pressure:
- Sales Drop: In July and August 2026, Seres' sales plummeted by nearly 50% year-over-year.
- From Profit to Loss: Revenue decreased slightly in the first half of the year, but net profits turned from a profit of 2.9 billion to a loss of 1.7 billion.
- Reasons: On one hand, there was a gap in new model updates; on the other hand, costs for batteries and chips increased. More importantly, the marginally diminishing effect of the Huawei brand became a factor. Seres used to rely on Huawei's popularity to sell its cars, but now, with so many cars in Huawei stores, Askar is no longer the only star, and it even has to compete with other brands. To survive, Seres needs to take control of its own destiny.
2. Channel "Inflation": From Exclusive Traffic to Sharing the Pie
Remember 2021 when the Seres SF5 was the first car to enter Huawei stores, receiving all the attention?
Now, HarmonyOS Smart Driving has five brands: Zhijie, Xiangjie, Zunjie, Shangjie, and Askar.
- For Huawei: It doesn't matter which brand is sold, as they all part of the HarmonyOS ecosystem, and profits go to Huawei through technology licensing and channel fees.
- For Seres: Why should its cars be displayed alongside others in Huawei stores? Its sales staff have to also promote other brands?
- Conclusion: Seres decided to go independent. It already has 380 Askar user centers in 218 cities. Why rely on others when it has its own stores? By taking control of its own channels, sales efficiency should increase.
3. Huawei's "Strategic Retreat": No More Car Manufacturing, but Also No More "Nurturing"
Huawei has always emphasized that it doesn't manufacture cars but only provides "enabling" services. However, its past involvement was so deep that it almost controlled the essence of the car companies (product definition, marketing, channels).
- Risk Mitigation: If a car company performs poorly, Huawei's brand could be affected.
- Standardization: Huawei wants to standardize the HarmonyOS Smart Driving model rather than creating customized solutions for each company.
- Maximizing Profits: Huawei prefers car companies to manage their markets and brands on their own, earning money from technology licensing and basic channel fees. This allows Huawei to operate with less capital and focus on more companies.
4. Consumers' "Trust Crisis": How Much Does the "Huawei" Brand Still Worth?
This is the most delicate point. Many consumers bought Askar not because of the car itself but because of the trust and technology associated with the "Huawei" brand.
- Example: When the Mate 60 was released in 2023, Askar M7's sales tripled because many customers came for the Huawei phone and also checked out the cars.
- Potential Risk: If Askar leaves Huawei stores, this traffic will disappear.
- Question: If consumers visit an independent Askar store without the Huawei label, will they still pay the same price for the same features? Seres needs to prove that Askar is worth buying on its own merits. This is a test of brand independence.
5. An Industry "Barometer": The First "Independent Experiment" in Chinese Automotive History
This move has far-reaching implications beyond the two companies:
- Implications for Other Companies: Xiaomi, BYD, Geely, and other companies collaborating with Huawei will be watching closely. If Askar's sales increase after independence, it shows that going without Huawei is feasible, and brands can grow independently. If sales plummet, it indicates that Chinese consumers still heavily rely on the Huawei brand.
- Model Change: The past was a tight bond between "Huawei" and car companies; in the future, it might shift to a loose alliance of "technology providers" and independent brands. This marks a significant shift in China's automotive industry from relying on giants to becoming more self-reliant.
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III. Tips for Consumers:
1. Don't Panic: The announcement says that users' rights and after-sales services will remain unchanged. Your existing Askar car will continue to receive the same maintenance and software updates. Huawei's technologies (like the HarmonyOS cockpit and ADS intelligent driving) will still be available, though the operator has changed.
2. Watch for Prices and Services: With independent channels, Seres may offer more flexible financial incentives to attract customers. However, it might also reduce prices due to decreased sales.
3. Test Drive Experience: Salespeople in Huawei stores might be more knowledgeable about technology, while those in Askar stores might be more familiar with the cars. Compare the services to see which one suits you better.
4. Long-Term Brand Strength: Over the next year, watch whether Askar's sales remain stable without Huawei's support. If they do, it shows that the brand is strong; if not, it suggests that consumers still value the "Huawei" label.
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IV. Conclusion: Is It a "Breakup" or a "Rite of Passage"?
This separation between Huawei and Seres is more like a rite of passage than a true breakup:
- For Seres: It's a painful transition to independence. Seres must learn to stand on its own, build its own brand trust, and become a true luxury brand. Failure could force it to reconsider its survival strategy.
- For Huawei: It's a strategic move to focus on being a technology provider rather than being solely responsible for the success of a single car company.
- For the Industry: It signals that Chinese car brands are moving from relying on giants to competing independently. The future will be about product quality, brand strength, and channel power.
One final question for you: If Askar disappears from Huawei stores tomorrow, would you still buy it because it's "Huawei Askar"? Or would you only care about how well the car drives? Feel free to share your thoughts in the comments.