Once a modest manufacturer best known for producing budget minivans, Seres has rapidly transformed into one of China’s most dynamic luxury automakers, outpacing iconic names like BMW and Mercedes in the country’s premium segment in under four years.
The turning point for Seres came in 2021 when the company previously called DFSK Motor partnered with technology giant Huawei to launch the Aito brand, focusing on high-end electric and hybrid SUVs. The move paid off: Seres has seen its annual sales triple, reaching approximately 427,000 vehicles in 2024, while its Shanghai-listed shares have soared by 120 percent over the same period.
The Aito M9, the brand’s flagship SUV, quickly captured the market’s attention after launching at the end of 2023. With features like Huawei’s Harmony operating system, a triple-screen dashboard, dual-zone refrigerator, and customizable ambient lighting, the M9 led the 500,000 yuan and above category in China, delivering around 151,000 units. The base battery EV version starts at 509,800 yuan, underscoring the company’s move into the luxury tier.
Seres Chairman Zhang Xinghai noted at the Shanghai auto show that Aito’s rise is “reshaping the luxury car market in China” by responding to evolving customer preferences. The M8, a slightly smaller SUV, has since joined the lineup, expanding Seres’ reach among high-end buyers.
Historically, China’s luxury car segment was seen as the last stronghold for legacy European brands, with consumers valuing tradition and prestige over new entrants. Aito’s success has challenged this assumption, reflecting changing luxury tastes among Chinese buyers and the growing influence of local tech companies like Huawei and Xiaomi. Despite a setback for Xiaomi after a high-profile accident involving its SU7 sedan, demand remains robust across both brands.
The path to success was not without skepticism. When Seres, then a budget carmaker, and Huawei, a newcomer to automotive manufacturing, announced their partnership, industry observers doubted their ability to compete in the luxury space. Yet the combination of advanced technology and fresh design has proven to be a winning formula.
However, 2024 has brought new challenges. The luxury car market in China declined by 23 percent amid a broader economic slowdown, according to ThinkerCar data. Seres’ own sales fell 42 percent in the first quarter of the year, and aggressive price competition has forced Aito to cut prices on its latest M9 models by 10,000 to 20,000 yuan. As a result, Mercedes and BMW overtook Aito in early 2024 sales, delivering 22,160 and 18,130 vehicles respectively versus Aito’s 17,190 units in January and February.
A unique challenge for Seres stems from Huawei’s expanding footprint in the automotive sector. The tech giant is replicating its successful in-car software partnerships with other automakers, such as Chery’s Luxeed and BAIC’s Stelato both targeting the same premium market. This has raised concerns over brand differentiation and internal competition, especially as even BMW has adopted Huawei technology for its own vehicles in China.
Despite the obstacles, Huawei’s Richard Yu, who leads the company’s consumer business, remains optimistic. “It’s hard work every time we build a brand, especially luxury brands. But we will not give up and will keep persisting,” he said during a recent launch event. Yu reaffirmed Huawei’s commitment to making every one of its automotive partnerships, including Aito, a long-term success.
