Huawei Technologies is selling the trademark of its electric vehicle (EV) brand Aito to Chinese carmaking partner Seres, as the Shenzhen-based tech giant shifts to enhancing its role as a systems and know-how supplier for the auto industry rather than a competitor.
Seres, which co-developed the Aito brand with Huawei, announced it would pay 2.5 billion yuan (US$343 million) for the trademark and patents, with the transaction expected to be finalised by the end of 2024. Seres assured that the deal would not affect its collaboration with Huawei, and both companies plan to further deepen their partnership.
This transfer of the brand name aligns with Huawei’s strategy to distance itself from auto manufacturing and focus on becoming a supplier and platform operator in the EV industry.
Aito was one of Huawei’s significant ventures into car manufacturing when it launched in 2021. This move came as the tech giant sought new revenue streams after trade restrictions severely impacted its once-lucrative smartphone business.
Before Aito’s launch, Seres was a subsidiary of the Shanghai-listed Chongqing Sokon Industry Group and was relatively unknown in China’s car industry. Huawei played a leading role in the Aito collaboration, heavily involving itself in the development and design process, unveiling new models at its own product launches, and selling the cars through its vast retail network across China.
Huawei’s latest move comes amid intense competition in China’s EV market, which is currently engaged in a discount war as new players like smartphone vendor Xiaomi enter the scene.
“Huawei will transfer the Aito trademark to Seres and in the meantime continue to support Seres in building and selling Aito cars,” Huawei said in a statement, reiterating its stance that it will not build cars itself.