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

Huawei Technologies is adjusting its strategy within the automotive industry by relinquishing some control over sales operations in its Harmony Intelligent Mobility Alliance (HIMA), in order to foster stronger relationships with its automaker partners amidst intensifying competition in smart driving systems [para. 1][para. 2]. Traditionally, Huawei has contributed its technology and sales channels to automakers in exchange for significant influence over the design, development, marketing, and sales of co-developed vehicles. However, now it is permitting partners like Chery Automobile, BAIC BluePark, and SAIC Motor to develop their own sales and after-sales networks for their respective HIMA-branded vehicles [para. 3].

There are currently five car brands marketed under HIMA: Chery’s Luxeed, BAIC’s Stelato, SAIC’s Shangjie, Anhui Jianghuai Automobile’s Maextro, and Seres Group’s Aito [para. 4]. Eight car models are sold through HIMA—four from Aito, two from Luxeed, one each from Stelato and Maextro, with Shangjie’s first model due for release in the fall [para. 9]. As of June, Aito accounted for approximately 85% of the 52,747 vehicles sold under the HIMA umbrella, underscoring its dominance compared to the limited successes of other partner brands [para. 9]. This sales disparity has prompted Huawei to consider ceding more sales functions to its partners, hoping greater autonomy can encourage deeper collaboration, according to sources within partner companies [para. 5][para. 6][para. 7]. Additionally, founder Ren Zhengfei has suggested letting partners manage overseas expansion for HIMA brands [para. 8].

The current strategy pivot marks a response to competitive pressures, particularly from new entrants like Xiaomi, and to the awkwardness of a tech firm like Huawei directly handling sales and after-sales responsibilities for products it doesn’t own outright [para. 6]. Transferring this responsibility is expected to improve relationships within the alliance [para. 7].

The Aito brand, a collaboration with Seres launched after earlier setbacks with the Seres SF5 model, has been a particular bright spot. Initial efforts under the “Smart Selection” predecessor allowed Seres to transition from an obscure EV maker to a recognized player in China, building a closer relationship with Huawei than the other automaker partners. However, this dependency on Aito for sales success also highlights a vulnerability within HIMA: most eggs are in one basket, with other brands trailing significantly [para. 10][para. 11][para. 13].

Complicating the landscape, Huawei spun off its intelligent automotive unit into Shenzhen Yinwang Intelligent Technology, which is now forming new alliances—separately from HIMA—with traditional manufacturers like GAC, Dongfeng, and FAW, companies typically slower to adopt smart EV technologies [para. 15][para. 16]. GAC’s joint venture with Huawei is targeting a new EV launch in 2026 [para. 17]. These “Huawei Inside” projects differ in that manufacturers retain all development control while utilizing the full suite of Huawei’s smart systems [para. 18].

Huawei is thus splitting resources between Yinwang’s new ventures and HIMA, focusing the latter on just five brands: Aito, Luxeed, Stelato, Maextro, and Shangjie [para. 20]. Leadership energy is being directed at building a comprehensive smart ecosystem, tying together Huawei’s consumer electronics with in-car systems [para. 21]. The technological push continues, as Huawei recently introduced four new versions of its Advanced Driving System (ADS 4) in April 2024, underscoring ongoing innovation despite operational realignments [para. 22].