On the evening of July 2, Seres Group announced that Seres Auto plans to acquire the "AITO" trademark and certain design patents held by Huawei and its affiliates. The market valuation of the relevant assets is estimated at 10.233 billion yuan (RMB, same below), while the total acquisition cost for Seres is 2.5 billion yuan, to be fully paid by December 30, 2024.

According to the announcement, Seres Auto Co., Ltd., a subsidiary of Seres Group Co., Ltd., intends to purchase 919 registered or pending "AITO" series text and graphic trademarks, along with 44 related design patents from Huawei Technologies Co., Ltd. and its affiliates, for a total acquisition price of 2.5 billion yuan.

Seres indicated that the transfer of the subject of the agreement will not affect the joint business of the two companies, and they will further deepen the co-operation relationship.

Based on the consistency of product and brand market recognition, the relevant subject assets of the transaction will be dedicated to the joint business of the two sides.

In terms of this, Huawei responded that, in assigning AITO and other series of trademarks will be transferred to the Seres at the same time, Huawei will continue to support Seres to manufacture and sell AITO well.

Huawei has always insisted that they do not manufacture autos, but uses leading intelligent networked car technology to continue to help car companies manufacure and sell autos. Huawei will continue to work with car companies to develop superior smart car products for users, and provide the ultimate smart travelling experience.

HIMA

"AITO is a new energy vehicle brand jointly developed by Huawei and Seres. Since April 2021, when the two companies formally established a cross-border business partnership, they have given full play to their respective strengths and jointly created "HUAWEI Smart Selection" model.

Under this cooperation model, Huawei is deeply involved in product definition, design, research and development, quality control and other aspects, and vehicles are sold in Huawei terminal stores. Up to now, it has created a series of models such as M5, M7 and M9.

In June, the delivery of AITO's entire lineup exceeded 40,000 units, a record high. Among them, M9 delivered 17,241 units, with a cumulative total of more than 100,000 units of large orders; M7 delivered 18,493 volumes, with cumulative sales breaking 110,000 units in the first half of the year.

Trademark’s Turnover

Initially, the "AITO" trademark did not belong to Seres or Huawei but to a third-party company named Beijing Yong'an Shida Technology and Trade Co., Ltd., with a registered capital of 110,000 yuan. This company primarily engages in technology transfer and has no direct connection with Seres or Huawei.

On June 11 last year, according to information disclosed by the Trademark Office of the China National Intellectual Property Administration, 21 "AITO" trademarks were transferred to Huawei. The ownership of the "AITO" trademark officially fell into Huawei's hands from that time.

Recently, Huawei has successively transferred the "Luxeed" and "Stelato" trademarks to Chery and BAIC.

According to BAIC New Energy's report, the Stelato S9 began mass production in June 2024, with an expected total sales volume of 480,000 units over its five-year lifecycle. The annual sales are projected to be 60,000 units, 120,000 units, 120,000 units, 96,000 units, and 84,000 units from 2024 to 2028, respectively.

Delineate the station

It is understood that HIMA has always been Huawei's cooperative model in defining, designing, developing, and selling. This transfer does not imply any changes to the HIMA solution but merely the transfer of the "AITO" brand ownership. After the transfer, the boundaries of HIMA will become clearer.

This transaction is Huawei's clear statement once again that the company will continue to act as a "Tier 0.5" supplier, partnering with automakers to compete in the high-end luxury segment. In June, HIMA delivered 46,100 units, a month-on-month increase of 50.9%, with a cumulative delivery of 194,200 units in the first half of the year.

Currently, Huawei's intelligent automotive business adopts three cooperation models: vertical component supply, the HI (Huawe Inside) model, and the Huawei Smart Selection model. Among them, the "HI model" (in cooperation with Changan Automobile) provides automakers with a full-stack intelligent automotive solution, while the "Huawei Smart Selection model" (in cooperation with Seres, Chery, BAIC, JAC, etc.) involves Huawei deeply in product definition, design, marketing, and user experience.

Active Cooperation

Recently, Seres and Huawei signed the "Further Deepening Joint Business Cooperation Agreement." Under the unchanged original cooperation framework, both parties will fully leverage their respective resources to jointly design and market high-end intelligent electric vehicle products and smart mobility solutions, aiming to build AITO into a "world-class new luxury automotive leading brand." This is another agreement signed by both parties since the deepening joint business cooperation agreement in February last year.

Additionally, Seres stated that the company is actively planning to participate in the cooperation with Inception (the new company of Huawei's automotive business unit) and will launch more AITO new products subsequently.

Earlier, in last November, Huawei and Changan Automobile signed the "Investment Cooperation Memorandum." Huawei plans to integrate the core technologies and resources of its intelligent automotive solution business into a new company.

New company eyes on automotive intelligent driving solutions, automotive intelligent cockpits, intelligent automotive digital platforms, intelligent vehicle clouds, AR-HUD, and intelligent vehicle lights, essentially covering the core capabilities of Huawei's automotive business unit.