Huawei Technologies' new energy vehicle alliance is experiencing significant operational strain, with deliveries declining 50% year-over-year in October 2026 [1]. The alliance, which includes member brands like Seres, is showing signs of internal stress as member companies seek greater operational independence amid intensifying in-group competition [1]. The Aito M9, a vehicle developed jointly by Huawei and Seres, has experienced sluggish sales performance [1], reflecting broader challenges within the alliance structure.
The deteriorating performance of Huawei's auto alliance reflects wider headwinds affecting China's electric vehicle market, including weakening consumer demand and intensifying competition among domestic EV manufacturers [1]. Member brands are increasingly operating with independence rather than as a cohesive unit, suggesting the alliance structure may be fracturing under competitive and financial pressures [1]. The 50% delivery contraction in October represents a substantial market contraction for the Huawei-led initiative [1], indicating that the alliance's business model faces fundamental challenges in the current market environment.
CONCLUSION
Huawei's auto alliance is experiencing a critical downturn with October deliveries collapsing 50% year-over-year, driven by weak consumer demand and internal competitive pressures. Member brands are increasingly seeking independence, suggesting the alliance structure may be unsustainable in its current form. This deterioration reflects broader challenges in China's competitive EV market and raises questions about the viability of Huawei's automotive strategy.