Recently, those keeping a close eye on the new energy vehicle (NEV) sector have witnessed the intriguing journey of Huawei and Seres—a tale of collaboration, brief separation, and subsequent reunion, with the hiatus lasting a mere few days before reconciliation.

What led to this swift reversal? The crux lies in the realization during their brief parting that cooperation with Huawei indeed fosters mutual prosperity, whereas separation spells mutual detriment. Hence, collaboration emerged as the superior choice.

It's common knowledge that the Seres we know today was once Sokon.

Sokon, a conglomerate, previously housed a subsidiary dedicated to NEVs named Seres. It was this very entity, Seres, that joined forces with Huawei to introduce the AITO vehicle.

Subsequently, the AITO car skyrocketed to fame. Leveraging Huawei's technological prowess and brand aura, it swiftly ascended to the pinnacle of China's NEV market, boasting the highest average price among domestic NEV brands.

Sokon's fortunes transformed dramatically, shifting from losses to substantial profits, thanks to Seres and AITO. Its market valuation soared more than tenfold, prompting Sokon to rebrand itself as Seres.

As depicted in the accompanying figure, these are the revenue, profit, and market value fluctuations in recent years.

From this succinct narrative and data visualization, it becomes evident that Sokon's metamorphosis into the renowned Seres (post-rebranding) was propelled by the subsidiary Seres' collaboration with Huawei.

However, by 2026, amidst a broader market downturn, characterized by escalating costs of memory chips and batteries, Seres reported losses exceeding 1.7 billion yuan in the first half of the year.

Consequently, Seres contemplated severing ties with Huawei. After all, Huawei's fees for hardware, licensing, marketing, channel access, etc., were substantial. Over the past four years, Seres had remitted a cumulative 11.1335 billion yuan to the Huawei ecosystem, representing 29.29% of its total revenue during the same period, with certain fees being fixed.

Thus, Seres pondered: Could assuming a leading role reduce its payments to Huawei? Might this slash costs and halt losses? This line of thinking culminated in the decision to part ways.

Yet, the announcement of separation triggered an unexpected backlash. Car owners protested. Many had chosen AITO for its Huawei association. Now, with Seres at the helm, would AITO retain its essence? Relying solely on Seres, AITO's premium appeal seemed unsustainable.

Media reports indicated a surge in order cancellations and a dip in new orders, dealing a severe blow to Seres.

For Huawei, Seres' departure would also carry significant repercussions.

On one hand, AITO stands as the most triumphant brand within the Harmony Intelligent Mobility Alliance's quintet. AITO's sales constitute half or more of the alliance's total, making its absence a substantial blow to reported figures. The other four brands' sales pale in comparison.

Secondly, AITO contributes handsomely to Huawei's coffers. As previously mentioned, Seres has paid Huawei 11.13 billion yuan over four years through their collaboration. Separation would drastically curtail this revenue stream, undoubtedly impacting Huawei's automotive business performance.

Hence, the two entities reached a consensus once again. AITO requires Huawei's technological edge and brand halo, while Huawei needs AITO's sales and revenue. Indeed, separation breeds mutual harm, whereas collaboration yields mutual benefits.

Nonetheless, despite their renewed collaboration, questions linger regarding who will ultimately assume the leadership role and how the cooperation model will evolve compared to its previous iteration. These details remain shrouded in mystery, yet to be fully unveiled.