Huawei Transfers Aito Brand IP to Seres Group
Huawei, the global technology conglomerate, has announced a significant transaction transferring the intellectual property rights of the Aito brand to Seres Group, its automotive manufacturing partner. This move, valued at $340 million, underlines Huawei’s commit ment to not entering the automobile manufacturing sector, instead focusing on leveraging its advanced smart connected car technologies to assist car companies in enhancing their offerings.
The transaction involves 919 trademarks and 44 design patents associated with the Aito brand, which was co-launched by Seres and Huawei on December 2, 2021. According to a stock exchange announcement, a subsidiary of Seres will acquire these assets for RMB 2.5 billion yuan.
This strategic shift is poised to strengthen the collaborative relationship between Huawei and Seres, with the joint business operations remaining unaffected. Huawei has reiterated its dedication to supporting Seres in boosting sales of the Aito brand through continued technological backing and expertise.
Huawei’s automotive business segment has reported profitability in the first quarter of this year, with the Aito brand leading the charge in sales performance. The company’s approach to the automotive industry, which emphasizes technology and solutions rather than manufacturing, has been validated by the market’s response.
In addition to the Aito brand, Huawei has forged partnerships with other automotive entities such as Chery, Beijing Automotive Group (BAIC), and Anhui Jianghuai Automobile Group (JAC), creating new brands and further expanding its footprint in the smart vehicle ecosystem.
Richard Yu, head of Huawei’s smart car solutions, highlighted the company’s success in an interview with Tencent News in May, attributing the profitability to the surge in sales, particularly of the Aito brand.
The sale of Aito-related assets is expected to set the stage for the independence of Huawei’s automotive business, aligning with the company’s long-term strategy to empower the automotive industry through innovation and technology rather than direct manufacturing competition.
Furthermore, Huawei’s collaboration with Changan Automobile, which signed an investment cooperation memorandum on November 25, 2023, aims to support a new entity focused on providing smart system and component solutions for the automotive industry. This joint venture, tentatively named Newcool, is poised to become a world-class leader in automotive smart driving systems and components, integrating the core technologies and resources of Huawei’s smart car solutions business.
Quotes:
- “Huawei’s commitment to the automotive industry is unwavering. We aim to be a catalyst for innovation, supporting our partners in creating vehicles that are smarter, safer, and more responsive to consumer needs.” — Huawei.
About Huawei: Huawei is a leading global provider of information and communications technology (ICT) infrastructure and smart devices. With a presence in over 170 countries and regions, Huawei is committed to bringing digital to every person, home, and organization for a fully connected, intelligent world.