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Huawei Technologies is selling the trademark of electric vehicle (EV) brand Aito to its Chinese carmaking partner Seres, as the Shenzhen-based technology giant moves to enhance its role as a systems and know-how supplier for autos instead of a competitor.
Seres, which co-developed the brand with Huawei, said it will pay 2.5 billion yuan (US$343 million) for the trademark and patents of Aito, with the transaction expected to be completed by the end of 2024, according to a filing by the Shanghai-listed carmaker on Wednesday. Seres said the deal will not affect its collaboration with Huawei and that both companies will further deepen their partnership.
“Huawei will transfer the Aito trademark to Seres and in the meantime continue to support Seres in building and selling Aito cars,” Huawei said in a statement on Wednesday, reiterating its stance that it will not build cars itself.
The transfer of the brand name comes as Huawei moves to distance itself from auto manufacturing and enhance its role as a supplier and platform operator in the EV industry.
Aito marked one of Huawei’s major forays into the carmaking industry when it was launched in 2021, as the US sanctioned tech giant looked for new revenue drivers after trade restrictions hobbled its once lucrative smartphone business.
Huawei’s status as a household name also helped Aito become one of the fastest growing EV brands in China. In early 2023, some retail stores marketed the cars under the name of Huawei Aito, stirring speculation about Huawei’s ambitions to build its own cars, before it backed off and reaffirmed its role as a supplier to the EV industry.
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