Huawei Cedes Some Control Over Sales to Automaking Partners, Sources Say

Huawei Technologies is adjusting its role in the Chinese smart car industry by relinquishing some control over the sales processes within its Harmony Intelligent Mobility Alliance (HIMA). This strategic move comes in response to intense competition among automakers and to strengthen collaboration with automotive partners, such as Chery, BAIC BluePark, and SAIC, who are now creating their own sales and after-sales service networks for HIMA-branded vehicles. Previously, Huawei exchanged its smart driving technologies and access to its sales channels for significant influence in the development, design, marketing, and sales of the co-developed vehicles [para. 1][para. 2][para. 3]. By allowing partners more autonomy over sales, Huawei hopes to increase their motivation to work closely within the alliance and address what some partners described as an “awkward” overlap in sales responsibilities, since the brands belong to the automakers who purchase Huawei components [para. 5][para. 6][para. 7].

Five car brands currently operate under HIMA: Luxeed (Chery), Stelato (BAIC), Shangjie (SAIC), Maextro (JAC), and Aito (Seres). Notably, these brands are expanding their roles, with Huawei’s founder Ren Zhengfei suggesting partners could also take the lead in developing HIMA brands abroad [para. 4][para. 8]. This strategic shift partly arises because only Seres’ Aito brand has achieved significant sales success under HIMA. In June, the alliance sold 52,747 vehicles, of which approximately 85% were Aito models, highlighting a heavy reliance on a single successful partnership [para. 9][para. 10].

The Aito brand, created jointly by Huawei and Seres in 2021 after the failure of the earlier Seres SF5 electric vehicle, enjoyed success due to Huawei’s deep involvement, including substantial after-sales support—a benefit that helped Seres emerge from relative obscurity in the Chinese market [para. 11][para. 12]. While Huawei initially intended for all its auto partners to produce vehicles under the Aito brand, regulatory issues prevented broader implementation, resulting in a more diversified but unbalanced brand portfolio [para. 13][para. 14].

HIMA now faces challenges as its alliance remains overdependent on Aito’s sales performance, and other HIMA brands struggle to achieve similar traction. Meanwhile, Huawei is fostering internal competition by spinning off its intelligent automotive solutions business into a separate company, Shenzhen Yinwang Intelligent Technology, which has established new alliances with traditional carmakers like GAC, Dongfeng, and FAW to develop EVs incorporating Huawei’s smart technologies [para. 15][para. 16][para. 17][para. 18]. The first car from the GAC–Huawei collaboration is expected to debut in 2026 [para. 19].

Yinwang operates under a different partnership model called “Huawei Inside,” where carmakers use Huawei’s intelligent systems but maintain independent control over vehicle development, unlike the more integrated HIMA model [para. 20]. The resource-intensive focus on both HIMA and Yinwang leaves fewer assets available for the HIMA alliance, signaling a strategy to concentrate on select brands—Aito, Luxeed, Stelato, Maextro, and Shangjie—while leveraging the synergy between Huawei’s smart devices and in-cabin technologies to create a comprehensive connected ecosystem [para. 21][para. 22][para. 23].

Huawei’s ongoing commitment to automotive technology is further demonstrated by the recent launch of its Advanced Driving System 4 in April, catering to the growing demand for advanced smart driving solutions in China’s competitive electric vehicle market [para. 24].