Seres, once known for producing inexpensive minivans, has surged ahead of legacy luxury brands BMW and Mercedes-Benz in China’s premium auto market — a transformation few saw coming. In just under four years, the Chinese automaker, now operating under the Aito brand in partnership with Huawei, has disrupted the country’s high-end car segment through a tech-driven reinvention and consumer-focused design.
A Sudden Ascent Through Tech and Timing
Originally operating as DFSK Motor, Seres rebranded itself through a strategic collaboration with Huawei in 2021, launching the Aito line of electric and hybrid SUVs. The results have been dramatic. Vehicle sales tripled in three years to reach approximately 427,000 in 2024, and its Shanghai-listed stock has climbed by 120%.
The Aito M9, an all-electric SUV launched at the end of 2023, quickly dominated the premium segment priced above 500,000 yuan ($69,000). Featuring Huawei’s HarmonyOS, a triple-screen cockpit, and amenities like ambient lighting and a dual-zone refrigerator, the M9 achieved 151,000 unit deliveries in its first year, according to ThinkerCar data.
Aito Reshapes China’s Luxury Auto Market
Seres Chairman Zhang Xinghai credited the brand’s success to “market recognition and customer preference,” stating that Aito’s flagship vehicles are “reshaping the luxury car market in China.” The M8, a slightly smaller SUV introduced in early 2025, extends that push with similar smart tech and upscale design.
Aito’s rise reflects a major shift in China’s luxury car market. Once thought to be immune to the EV revolution, this segment is now being transformed by local players. Chinese consumers, especially younger ones, are prioritizing in-car technology and value over traditional European prestige — a change Aito has capitalized on.
The Huawei Effect: Technology Meets Mobility
Aito’s success is intertwined with Huawei’s tech ecosystem. The HarmonyOS-powered infotainment and driver-assist features set Aito’s vehicles apart, offering seamless digital experiences that resonate with China’s smartphone-savvy buyers. Huawei’s CEO of consumer business, Richard Yu, emphasized the difficulty of building new luxury brands but affirmed Huawei’s commitment to the automotive sector, not just with Aito but with multiple joint ventures.
Headwinds on the Horizon
Despite the meteoric rise, Seres faces notable challenges. The overall luxury market in China shrank by 23% in 2024, according to ThinkerCar, amid sluggish economic growth and weakened consumer confidence.
Additionally, the EV sector is in a fierce price war. Seres has cut prices for refreshed 2025 models of the M9 by 10,000–20,000 yuan to stay competitive. The early months of 2025 saw Mercedes and BMW reclaiming the top spots in premium sales, with Aito slipping to third.
Another concern is Huawei’s expanding network of automotive partners. Beyond Seres, the tech giant has launched EV collaborations with Chery (Luxeed) and BAIC (Stelato), both of which target similar demographics. This raises concerns about market cannibalization and brand dilution, even as some rivals like BMW also adopt Huawei’s software.
What’s Next for Seres and Aito?
Seres’ rapid evolution from budget brand to luxury contender shows how swiftly consumer expectations and brand dynamics can shift in China’s auto market. With plans to fend off competitors and maintain momentum, the company must navigate a cooling economy, intensifying competition, and complex alliances.
But for now, Aito represents something rare: a domestic luxury automaker that has overtaken global icons — not with heritage, but with high-spec innovation, smart branding, and a deep understanding of what Chinese luxury buyers want in 2025.
