Chinese tech giant Huawei has announced the transfer of trademarks and patents associated with the Aito brand to its car-making partner Seres Group, signaling Huawei’s firm stance on not entering the automotive manufacturing sector.
According to a recent stock exchange announcement by Seres, a subsidiary plans to acquire Huawei’s Aito-related assets, including 919 registered or pending trademarks and 44 design patents, for RMB 2.5 billion yuan ($340 million).
“The transaction reinforces the ongoing partnership between Seres and Huawei while consolidating our commitment to the Aito brand,” the announcement stated, affirming that the deal will not impact their joint business activities.
Huawei reiterated its strategic focus on supporting automotive innovation through smart internet-connected vehicle technology, rather than directly manufacturing vehicles. Local media quoted Huawei reaffirming its position: “We do not build cars but leverage our advanced smart connected car technology to assist car companies in enhancing vehicle development and sales.”
Aito, launched in December 2021 as a premium car brand in collaboration with Seres, represents Huawei’s initial venture into automotive branding. The partnership has since led to profitable results, particularly highlighted by strong sales growth for the Aito brand in the first quarter of this year, as noted by Richard Yu, head of Huawei’s smart car solutions.
The divestiture of Aito-related assets is expected to facilitate Huawei’s automotive business independence. Earlier agreements with Changan Automobile further underscore Huawei’s strategy to consolidate its smart car solutions into a new venture aimed at becoming a global leader in automotive smart driving systems and components.
Under the memorandum signed with Changan Automobile in November 2023, Huawei committed not to engage in automotive manufacturing within the new company, named Newcool, emphasizing a strategic shift towards technology solutions rather than vehicle production.
