At noon Beijing time on September 15th, media outlets reported that the Harmony Intelligent Auto model—a collaborative venture in the automotive sector between A-share listed company Seres (601127.SH) and Huawei—would undergo significant strategic adjustments.

As the market opened in the afternoon, Seres' stock price plummeted, dropping over 7% during the session and hitting a recent low of 44.44 yuan at one point.

Following the market's close at 17:00, Harmony Intelligent Auto officially issued a statement regarding the collaboration.

It was formally announced that, effective immediately, AITO would embark on a new collaborative model under the Harmony Intelligent Auto framework. In this new arrangement, Seres would lead in product definition, design, brand marketing, channel retail, and service systems, with Huawei's consumer business group providing supportive roles.

This marks the conclusion of the seven-year collaboration between Huawei and Seres, a partnership that has now reached its proverbial "seven-year itch."

Such an outcome was, perhaps, inevitable.

Both Harmony Intelligent Auto and AITO have significantly underperformed against their 2026 expectations. Harmony Intelligent Auto had set a sales target of exceeding 1 million vehicles for 2026, yet only 329,400 vehicles were delivered from January to August, achieving just 32.9% of the lower limit of their target. Similarly, AITO aimed to deliver 500,000 vehicles in 2026, but only managed 201,900 deliveries during the same period, achieving 40.4% of its goal.

This current state of affairs is unsatisfactory for both partners.

More critically, Huawei has not only developed the 'Five Brands' under the Harmony Intelligent Auto model but also the 'Three Realms' under the HI model, thereby diluting its focus and resources beyond Seres. Consequently, Seres is motivated to assert its independence and explore new avenues for growth.

As a significant chapter in the history of China's new energy vehicle development, the cooperation model between Seres and Huawei has ignited an industry-wide debate on the 'soul theory.' With the announcement on September 15th, the partnership between the two entities has entered a new phase of development.

For Seres and the AITO brand, gaining more autonomy is advantageous. However, for Huawei's consumer business group, it means relinquishing the flagship model it initially fostered.

Without the comprehensive support of Huawei's systematic capabilities, has Seres cultivated a team capable of independent success during its seven-year collaboration with Huawei?

The crux lies in whether the Huawei-affiliated team at Seres will remain intact, particularly the future roles of the following five key individuals:

First is He Liyang, President and Vice Chairman of Seres Automotive, and the core figure from Huawei at Seres. He previously served as Vice President of Huawei's Automotive BU, an early leader in Huawei's Smart Selection vehicles, and the driving force behind the initial collaboration between Huawei and Seres. He Liyang officially joined Seres in September 2023, overseeing the operation, strategy, branding, and channels of the AITO brand, making him pivotal to AITO's operations.

Second is Li Bo, Vice President of Seres Group, formerly the Head of Huawei's Smart Selection Vehicle Product Department and a key leader in intelligent cockpits. He was deeply involved in the product definition of AITO models and joined Seres in March 2024, overseeing vehicle product planning, model iteration, and the intelligent cockpit product system.

Third is Huang Qizhong, Vice President of Seres Group, previously Huawei's Asia-Pacific Terminal Human Resources Director and a senior HR expert. He joined Seres in May 2023, earlier than He Liyang, who had briefly worked at XPENG Motors as Vice President responsible for overseas markets after leaving Huawei. Huang Qizhong is responsible for organizational setup, performance evaluation, and the talent system at Seres, introducing Huawei's HR practices to Seres' automotive business.

Next is Zhang Liao, COO of AITO, formerly President of Huawei Digital Energy's Intelligent Electric Sales Service, overseeing delivery, supply chain, channel retail, after-sales, and cost control at AITO, primarily responsible for the production and sales execution of AITO.

Finally is Zhou Ping, Head of Seres' subsidiary Phoenix Technology, previously President of Huawei's Automotive BU Solutions Department and the person responsible for implementing the Harmony Intelligent Auto project. At Seres Phoenix Technology, he leads the development of the self-developed intelligent platform AIVA. Zhou Ping joined Seres Phoenix Technology after leaving Huawei following the spin-off of Yinwang, where he played a crucial role in building Seres' self-developed intelligent cockpit and intelligent driving systems, making him a key technical executive.

Judging by the responsibilities of these five executives, this team is well-equipped to fully assume control of the five major areas of leadership that the AITO brand has regained from Huawei at Seres. If these Huawei-affiliated Seres AITO executives remain, they will form the core and formidable management team for this transition.

However, the extent of the influence these Huawei-affiliated executives will wield at Seres remains to be seen.

The capital market has reacted negatively to Seres reclaiming leadership of the AITO brand from Huawei.

Following the news, Seres' A-share stock price took a sharp dive from around flat in the morning, experiencing a significant drop with increased trading volume. The intraday decline exceeded 7%, with the stock price hitting a recent low of 44.44 yuan. The final closing price was 46.45 yuan, down 5.09% for the day, with a total trading volume of 2.204 billion yuan, significantly higher than the previous trading day's 1.143 billion yuan. Seres' Hong Kong-listed stock also closed down 6.12%.

Seres' A-share stock price has cumulatively fallen more than 62% this year.

Moving forward, how will AITO fare without the brand influence and technological prowess of Huawei? Only time will tell. What is certain is that the challenges ahead will be formidable.

It is worth noting that prior to the brand influence and technological capabilities of Huawei, Zhang Xinghai of Seres was a relatively obscure figure in the automotive industry. The success of AITO elevated Zhang Xinghai's profile.

Now, without the brand influence and technological capabilities of Huawei, will Zhang Xinghai be sidelined?