In underneath 4 years, Seres Group Co., a small Chinese language automaker as soon as finest recognized for its 30,000 yuan ($4,200) minivans, has overwhelmed luxurious legacy names like BMW and Mercedes to turn into the nation’s hottest high-end automotive vendor.
Previously known as DFSK Motor, Seres partnered with telecommunications large Huawei Applied sciences Co. again in 2021 to launch the Aito model of premium electrical and hybrid sport utility automobiles. Since then, Seres has had a dizzying rise. Gross sales tripled in three years to round 427,000 automobiles in 2024, whereas the corporate’s Shanghai-listed inventory is up 120%.
Aito, by its well-liked M9 SUV, grew to become the best-selling automotive model in China final 12 months within the 500,000 yuan and above class, regardless of the car solely being launched on the finish of 2023. Deliveries of the spacious mannequin, which options Huawei’s Concord working system, a triple-screen dashboard and choices equivalent to a dual-zone fridge and ambient lighting, had been round 151,000 models, in response to information from Shanghai-based automotive consultancy ThinkerCar.
The M9’s most elementary battery EV model begins from 509,800 yuan.
Aito’s flagship fashions are “reshaping the luxury car market in China,” Seres chairman Zhang Xinghai mentioned on the Shanghai auto present in April. “Aito’s success today is thanks to the market’s recognition and customers’ preferences.” Outdoors of the M9, Aito’s newest premium mannequin is the M8, a barely smaller SUV launched earlier this 12 months.
China’s luxurious section was seen because the final slice of the automotive market comparatively insulated from the EV transition that’s left mass market international carmakers equivalent to Volkswagen AG and Basic Motors Co. struggling to catch up. It’s typically thought that newer EV producers with zero pedigree couldn’t match the model status they provided. Aito has confirmed that flawed, and proven how Chinese language customers’ luxurious tastes are shifting.
It’s additionally testimony to the success of China’s smartphone makers Huawei and Xiaomi Corp. When the pair, independently, first began speaking about getting into the EV market round 4 years in the past, they confronted a considerable amount of skepticism. Xiaomi’s gross sales have been impacted by a deadly crash involving considered one of its automobiles in late March, however regardless of that, its SU7 sedan continues to see wholesome demand.
Fronting a media briefing in 2022, Zhang mentioned many doubted that Seres, which up till that time primarily made low-cost minivans, and Huawei, which had by no means made automobiles earlier than, may manufacture a luxurious marque.
Seres’ success faces some challenges, nevertheless. The posh automotive market in China skilled a 23% decline in 2024, ThinkerCar information present, impacted by the nation’s financial slowdown and weak client sentiment.
There’s additionally the continued worth conflict. The sticker worth for many of the 2025 refreshes of the M9 was reduce by between 10,000 yuan and 20,000 yuan and Aito is beginning to fall behind. In January and February, Mercedes delivered 22,160 automobiles and BMW, 18,130, to overhaul Aito at 17,190 models, in response to ThinkerCar. Seres’ total gross sales additionally slumped in first quarter, falling by 42%.
A extra distinctive hurdle to Seres lies in its tie-up with Huawei.
The expertise large is establishing comparable in-car software program offers with different producers. It’s launched EV ventures like Luxeed with Chery Car Co., and Stelato, with BAIC Motor Corp., which additionally goal the high-end market. That’s led to issues round homogenization and cannibalization. Even a few of Seres’ European opponents, equivalent to BMW, have teamed up with Huawei to supply clever options of their automobiles.
Richard Yu, who oversees Huawei’s client enterprise group, is sanguine, saying the Aito premium model has had its share of setbacks in its quick life.
“It’s hard work every time we build a brand, especially luxury brands,” Yu mentioned at a product launch final September. “But we won’t give up and will keep persisting,” he mentioned, including that Huawei is decided to make successful out of each automotive model it launches with companions, not simply Aito.
This story was initially featured on Fortune.com
