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By ZHOU Shuqi, ZHANG Mingrui
The tough times never end for EV maker SERES, as its partnership with telecom giant Huawei looks increasingly misguided. In April, less than 3,000 SERES Aito Wenjie were sold, down 14 percent year on year.
High-pressure sales
In the first 9 months of last year, SERES claims to have delivered more than 75,000 EVs. In December last year, the company said it shipped more than 10,000 Aito. That number collapsed to less than 4,500 in January, slipping even further in February.
An Aito salesperson at a Beijing showroom told Jiemian that his team was under a lot of pressure because of poor sales, even though his store provided a 30,000-yuan (US$4,300) discount. Sales are still dropping every month.
Negative effect on sales
SERES was the first EV maker to work with Huawei’s Harmony OS system. At the time, Aito was considered to have some of the best smart cockpit systems. But as other EV makers have been doing everything they can to offer more and more “upgrades” to their systems, Aito is stuck in the mud and offers the market nothing new.
The Aito Wenjie M5 is priced from 260,000 yuan, and M7 from 290,000 yuan. A passerby at the showroom told Jiemian News while he considered Huawei’s system to be OK, the rest of Aito was a disappointment. “I can name quite a few much better EVs at similar price range,” he said.
Analyst WANG Xianbin of Gasgoo said people buy Aitos mostly because of Huawei, not SERES, and the constant reiteration of Huawei’s “not making cars” mantra is definitely having a negative effect on Aito sales.
Establishing good relationships with carmakers
In March this year, REN Zhengfei, founder of Huawei, restated that the company is not making and will not make a car for at least five years. He has also forbidden Aito to use the name “Huawei Wenjie” in its publicity materials. It’s a subject Ren has harped on about for years.
Head of Huawei’s auto unit YU Chengdong, who prefers to be known as head of consumer business, has said that there is no need for Huawei to actually make a car. Partnering with EV makers was a better solution.
But all the evidence from the fraught and fractious relationship with SERES says the opposite. There may well be no clear reason for Huawei to make cars, but if the secret to future success lies in establishing good relationships with carmakers, the SERES case has shown how difficult this will be to sustain.
An in-car operating system is not like in-car audio or air conditioning. It can’t just be slotted into an appropriate hole in the dash and wired up the battery. It is an integral part of the vehicle and a bespoke part at that.
We all fall together
With that being said, Huawei is no longer placing all its hopes on SERES and is trying to establish less tempestuous relationships with better-established EV makers including Chery, the ninth largest automobile manufacturer in China, shipping well over a million vehicles each year; JAC and BAIC Group.
Wang said Aito is still in the leading group in terms of autonomous driving and smart cockpits. An upgraded version of the Wenjie M5 is “widely anticipated” by the market, according to Wang, who claims that: “Huawei will not wish Aito to continue falling, for it hurts its image too.”
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