(Yicai Global) April 3 -- Aito, a brand of Chinese new energy vehicle maker Seres Group, remains a key partner of telecoms giant Huawei despite the removal of 'Huawei' from co-developed vehicles, per the chief of the latter's automotive business group. 

There is no change in Aito's essence as a brand in Huawei’s ecosystem despite the removal of the brand tag to avoid confusion about the status of Huawei as a maker of automotive solutions not hardware, Richard Yu, chief executive of the Shenzhen-based firm's intelligent automotive solutions business unit, said recently. Besides Seres, Chery Automobile, BAIC Group, and JAC Group will also soon launch models equipped with a full set of Huawei solutions, he added.

Huawei does not manufacture cars but helps auto vendors make good vehicles, giving car companies like Seres opportunities to growan executive at Seres said after the latest branding decision. Huawei and Seres have teamed up on three models, namely Aito M5, Aito M7, and the all-electric version of Aito M5. These vehicles have gained more than 100,000 buyers, which proves their initial recognition by the market and users, per the executive. More co-developed products will hit the market as scheduled, the person added.

There will be no conflict of interest despite the launch of different models of several brands with Huawei while using the smart selection method, according to Yu. The smart selection method means that Huawei provides carmakers with parts and technical solutions, as well as management systems.

Some of the co-developed models are sport-utility vehicles while others are sedans and multipurpose vehicles. Huawei and manufacturers make full use of car plants' capacity and it will not waste resources but instead give them full play together, he added.

Huawei has three ways to engage in the auto business. Apart from the above mentioned smart selection way, Huawei can also work as a part supplier or intelligent system provider through the 'Huawei Inside' mode.

When entering the automotive sector, Huawei was first thinking about becoming a car parts supplier similar to Bosch and Continental, but in fact, what Huawei offers is not brakes, steering systems, or other standard parts, but software, algorithms, cloud services, and chips, which are highly customized and difficult to be sold at a large scale like standardized components, Yu said.

Hence, cooperation needed to be deeper with manufacturers to integrate and iterate smart driving solutions continuously and that is why Huawei launched its 'Huawei Inside' partnership model, Yu added. Some of the models that were developed that way are Arcfox Alpha S HI, co-developed with BAIC's Arcfox, and the Avatr 11, co-crafted with Changan Automobile and Contemporary Amperex Technology.

Widening collaboration abroad is unlikely as Huawei mostly cooperates with domestic vendors due to sanctions, per Yu. The company has been on the Entity List of the government of the United States since May 2019.

Editors: Zhang Yushuo, Emmi Laine, Xiao Yi