As tensions mounted and rumors swirled uncontrollably, Huawei finally stepped forward to set the record straight. On September 15, following Seres's announcement of a new exclusive franchise model for the AITO brand's operations, whispers of a rift between Huawei and Seres began to surface. Questions loomed over whether AITO's future offerings could still harness Huawei's cutting-edge technologies and whether Huawei would maintain its full support for AITO, casting a shadow of uncertainty. This also exerted considerable pressure on the growth trajectory of the AITO brand. On September 20, Huawei Yinwang issued a clarifying statement to dispel these rumors.

Huawei Yinwang explained that it had been inundated with inquiries about the continuation of its cooperation with AITO, as well as concerns from users regarding upgrades and service assurances. Hence, it was issuing this statement. Huawei Yinwang made it abundantly clear that Seres is not only a strategic partner but also a shareholder of Yinwang. Yinwang will persist in providing Seres with a comprehensive suite of smart car solutions, encompassing Qiankun Intelligent Driving, HarmonyOS Cockpit, Intelligent Vehicle Control, Intelligent In-Vehicle Optics, and Intelligent Vehicle Cloud, along with ancillary technical services. The intelligent evolution of AITO series products and the safeguarding of user rights will remain unscathed.

Following the statement's release, Kang Bo, a director and vice president at Seres, commented in the remarks section, "Huawei: Yinwang will persist in fully backing AITO's development and safeguarding the user experience." This effectively countered recent rumors alleging a split between Huawei and Seres, offering reassurance to existing AITO owners. Beyond technical support, there had also been unequivocal statements regarding AITO's brand stature. On September 18, Huawei Harmony Intelligent Mobility also affirmed that AITO remains an integral part of the Harmony Intelligent Mobility ecosystem. These two statements serve as definitive "responses" concerning brand positioning and technological lineage, the two facets that AITO's current consumers hold most dear.

On September 15, Harmony Intelligent Mobility and Seres unexpectedly unveiled an adjustment to the smart selection cooperation model for the AITO brand. Seres will now spearhead product definition, design, brand marketing, channel retail, and service systems, with Huawei's consumer business providing backing. Concurrently, AITO will exit Harmony Intelligent Mobility stores at the retail level. Subsequently, in accordance with the agreement, this model was dubbed the "exclusive franchise model." Naturally, the outside world prefers to characterize this adjustment as "going solo."

From a retrospective vantage point, this model adjustment has wielded a significant influence on both AITO and Harmony Intelligent Mobility. Firstly, AITO, as the most triumphant brand within Harmony Intelligent Mobility, has consistently served as the benchmark among the five brands. With AITO now under Seres's helm, its market standing has been impacted. Numerous individuals have openly stated that they purchased cars due to "Huawei," and there are apprehensions about whether the "Huawei factor" will wane post-model adjustment, transforming it into an HI model. Secondly, there are concerns that the product quality of AITO may suffer after relinquishing Huawei's direct oversight.

The same holds true for Harmony Intelligent Mobility—AITO is the sole profitable brand within Harmony Intelligent Mobility, rendering it pivotal for the brand's reputation, channel prowess, and market clout. After AITO's departure, it will also reverberate through Harmony Intelligent Mobility itself. For instance, there are worries about whether other brands will follow suit, exacerbating the overall pressure on Harmony Intelligent Mobility. Hence, many deem this adjustment an ill-advised choice.

Amidst these skepticisms, Kang Bo, the vice president of Seres Group, provided a comprehensive, one-sided response to external inquiries regarding AITO's business model transformation during a September 18 interview.

Firstly, addressing why AITO embraced the exclusive franchise model, Kang Bo recounted that in 2021, Seres and Huawei jointly launched the AITO brand, pioneering cross-industry collaboration between the automotive and ICT sectors. Over the past five years, Seres and Huawei, devoid of any pre-existing models to emulate, jointly forged an innovative cross-industry business model, wholeheartedly nurturing AITO from its inception into today's high-end brand boasting a million users and a robust foundation. Under these circumstances, AITO has reached a juncture where it must contemplate its next moves.

He elaborated that when AITO's sales ascend to a million-unit scale, it imposes heightened demands on brand management in terms of refinement and differentiation. From a user's vantage point, patrons of high-end luxury car brands yearn for an exclusive sense of prestige and brand allegiance. Hence, AITO proposed the "exclusive franchise" model, which is "predicated on the existing cooperation, further centered around users, and focused on AITO's own brand positioning, product planning, and service experience. It aims to continually deepen and refine the established high-end brand value, rendering AITO's high-end value more pristine and precisely conveyed to users, enabling them to feel a sense of pride."

Kang Bo's statement underscored "predicated on the existing cooperation." The new exclusive franchise cooperation method is perceived as another innovation in the cross-industry fusion model, signifying a system upgrade, optimized division of labor, focused resource allocation, and enhanced channel efficiency, propelling value growth and fostering win-win partnerships. Indeed, there is a pressing need for this: Currently, with the proliferation of products, store locations within Huawei's consumer business are conspicuously inadequate. According to media reports, subsequent Harmony Intelligent Mobility stores will be bifurcated into AITO exclusive stores and mixed sales stores for the other four brands, substantiating this claim.

AITO's capacity to operate autonomously from Harmony Intelligent Mobility and implement a separate channel strategy is also intertwined with its channel development over the past few years. According to Kang Bo's data, AITO currently boasts over 400 user centers spanning more than 200 cities nationwide, a scale commensurate with that of first-tier luxury brands. Additionally, another testament is that AITO previously inaugurated a "Harmony Grand Hotel" in its channels, which was later suspended but reinstated post-exclusive franchise model implementation.

Addressing doubts about the "Huawei factor" and product quality, Kang Bo affirmed that Seres and Huawei are resolutely united in crafting high-quality cars, and AITO remains a core member of the Harmony Intelligent Mobility family, with Huawei's consumer business continuing to provide backing. Of course, this was previously deemed a unilateral response from Seres, but now, with Huawei's endorsement, it serves as a reassurance for consumers.

In reality, whether willing or not, Seres and Huawei have forged a truly profound bond. Technologically, Seres is also a shareholder of Shenzhen Yinwang Company, holding a 10% stake. AITO will have access to Huawei's latest, superior, and most pragmatic technologies, products, and supply assurances. In terms of quality, Kang Bo emphasized that AITO's quality control system was jointly established by Seres and Huawei during their five-year deep collaboration and will persist in iterating and upgrading with the support of artificial intelligence. In essence, Seres will adhere to and continually refine its previous standards.

Furthermore, Kang Bo also unveiled AITO's subsequent product blueprints. He stated that Seres's focus in subsequent operations is to launch high-quality cars and manage each product adeptly over the long haul, garnering market recognition and user adoration. Among them, the AITO M5, M6, M7, M8, and M9 already encompass diverse price brackets. AITO will persist in enhancing its capacity to manage major products and strive for a leading market position in their respective segments. Subsequently, Seres will also "seize opportunities" to venture into the sedan, MPV, and other competitive product markets. This implies that in terms of product planning, it will be more nimble and break free from the current Harmony Intelligent Mobility product planning orbit.

From the current vantage point, although the adoption of the "exclusive franchise" model for AITO was somewhat unexpected, the overall situation is now tending towards recovery and calm. Post-exclusive franchise model implementation, AITO can achieve a reduction in operating costs, which is conducive to the resurgence of its business performance. From a retail perspective, AITO's brand image has largely been cemented, and as long as it maintains high-end operations and reliable quality, there will be no significant fluctuations. Interestingly, Huawei Yinwang emphasized that it would fulfill its strategic positioning as an "electronic screwdriver," propelling the development of the smart car industry and providing exemplary service to users. This once again underscores Huawei's stance of not venturing into car manufacturing.