In-Depth Analysis of AITO M7's 400,000 Unit Delivery Milestone and the Market Impact of Huawei Smart Selection Auto Business

The cumulative deliveries of all AITO M7 models have exceeded 400,000 units, marking the critical stage of large-scale development for Huawei’s Smart Selection Auto model [1]. This achievement not only validates the feasibility of Huawei’s business model of deeply empowering automakers, but also reflects strong consumer demand for products integrating “intelligence + luxury”. From a temporal perspective, the AITO brand has accumulated over 950,000 users in just 4 years since its establishment. The AITO M9 has achieved even greater success, with cumulative deliveries of over 260,000 units across all models since its launch, and has ranked first in sales of luxury SUVs priced above RMB 500,000 for 20 consecutive months [2].

The extended-range long-range version of the AITO M7 opened for pre-orders on January 10, 2026, with a starting pre-sale price of RMB 299,800, further improving the product matrix [1]. The success of this model lies in accurately grasping the consumption upgrade demand in the mid-to-large SUV market priced between RMB 300,000 and RMB 400,000, and establishing differentiated competitive advantages in three core dimensions: space, intelligence, and cruising range.

In terms of market performance, the AITO brand maintained strong growth momentum in 2025, with annual sales exceeding 423,000 units, accounting for over 70% of the HarmonyOS Smart Mobility brand matrix [3]. At the model level, the AITO M9 remains the sales champion in the RMB 500,000-plus market, the AITO M8 leads the RMB 400,000-plus market, and the all-new AITO M7 saw monthly sales exceed 20,000 units shortly after its launch in September, becoming the sales champion of mid-to-large SUVs priced between RMB 300,000 and RMB 400,000 [4]. This product strategy of “high-end breakthrough, mid-market penetration” has enabled AITO to establish a strong competitive position in various market segments.

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Huawei’s Smart Selection Auto business has formed a brand matrix covering all price ranges, reflecting the core logic of its “ecological” automotive concept [5]:

Brand	Partner Automaker	Positioning	Price Range
AITO	Seres	Luxury Smart SUV	RMB 250,000 - 550,000
Luxeed	Chery	Tech Sedan/SUV	RMB 250,000 - 400,000
Xiangjie	BAIC	Premium Executive Sedan	RMB 400,000 - 500,000
Zunjie	JAC Motors	Ultra-Luxury Flagship	RMB 1,000,000-plus
Shangjie	SAIC	Mainstream Family Vehicle	RMB 150,000 - 250,000

This multi-brand layout not only meets the differentiated needs of different consumer groups, but also maximizes scale effects through technology reuse. Yu Chengdong, Huawei’s Executive Director, clearly stated that the Five ‘JIE’ brands emphasize “working together” rather than competing with each other, and at least 12 new models will be launched in 2026 [6].

Huawei’s automotive business adopts a “step-by-step” cooperation model, forming a complete value chain from technological empowerment to deep binding [7]:

Huawei as a Tier 1 supplier, provides standardized components such as electric drive systems, LiDAR, and AR-HUD to automakers. This model is suitable for traditional automakers that wish to maintain brand independence, with Huawei only acting as a technology supplier.

Huawei provides a full set of technical solutions from intelligent driving, intelligent cockpit to intelligent electrification. Brands such as BAIC ArcFox, Changan Avatr, and Voyah adopt this mode, with vehicles marked with a prominent “HI” logo. This mode allows automakers to retain full product definition rights and brand leadership.

Huawei deeply engages in the entire process of product definition, design and R&D, and channel sales, forming a “joint entrepreneurship” symbiotic relationship with partner automakers. AITO, Luxeed, Xiangjie, Zunjie, and Shangjie all adopt this mode, with Huawei Terminal BG investing a large number of product managers, software engineers, and design experts to reshape products [8].

In August 2024, Changan Automobile, through Avatr, acquired a 10% stake in Shenzhen Yinwang Intelligent Technology Co., Ltd., an independent company of Huawei’s Automotive BU, for RMB 11.5 billion; Seres completed a transaction of the same scale shortly after [9]. The strategic significance of this capital cooperation is reflected in three aspects:

1. Technology Lock-In
   : Partners gain priority access to Huawei’s cutting-edge intelligent technologies, ensuring first-mover advantages for core technologies such as the ADS High-Level Intelligent Driving System and HarmonyOS Cockpit.
2. Decision-Making Participation
   : Automakers directly participate in technical route decisions through board seats, including R&D directions for next-generation intelligent driving and cockpit technologies, as well as technology allocation priorities.
3. Interest Sharing
   : Shift from “paid usage” to “community of interests”, sharing the future development dividends of Huawei’s intelligent automotive solutions [10].

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The rise of Huawei’s Smart Selection Auto business is reshaping the competitive landscape of new energy vehicle startups. The 2025 sales ranking of new energy vehicle startups shows significant changes [11]:

Rank	Brand	2025 Sales	Year-over-Year Growth
1	Leapmotor	597,000 units	103.1%
2	HarmonyOS Smart Mobility	589,000 units	32%
3	XPeng Motors	429,000 units	126%
4	Xiaomi Auto	410,000 units	-
5	Li Auto	Approximately 380,000 units	Negative Growth

HarmonyOS Smart Mobility firmly ranks second among new energy vehicle startups with deliveries of 589,000 units, and its single-month delivery in December reached 89,611 units, continuously hitting record highs, demonstrating strong terminal growth momentum [12]. Notably, the average monthly transaction price of HarmonyOS Smart Mobility is RMB 390,000, far exceeding the industry average, proving its brand premium capability in the high-end market.

The AITO series has exerted substantial competitive pressure on BBA (Mercedes-Benz, BMW, Audi). In the luxury SUV market priced above RMB 500,000, the AITO M9 has ranked first in sales for 20 consecutive months, breaking the long-term monopoly of traditional luxury brands in this market segment [13]. A report released by the China Automobile Dealers Association shows that the AITO M9 has ranked first in the large SUV residual value rate study for 9 consecutive months, and has topped both the plug-in hybrid and pure electric segments.

The core logic of this substitution effect lies in: traditional luxury brands have an obvious gap in intelligent level compared with user needs, while emerging intelligent electric vehicles have technological attributes but lack luxury texture. AITO has accurately filled this market gap through its brand positioning of “Intelligence Reshaping Luxury” [14].

The large-scale adoption of Huawei’s Kunpeng Intelligent Driving System is accelerating the industry’s intelligent process. As of November 2025, monthly sales of models equipped with Huawei Kunpeng Intelligent Driving System have exceeded 100,000 units for the first time; the cumulative assisted driving mileage of Huawei Kunpeng Intelligent Driving System (ADS) has exceeded 5 billion kilometers; Huawei Kunpeng has established cooperation with 14 automakers, covering 33 mass-produced models [15].

This technology popularization has two profound impacts on the industry:

1. Increased Competition Threshold
   : Intelligence is evolving from a high-end label to a standard feature for the mass market, with L2-level assisted driving expected to become a standard feature for economical electric vehicles priced at RMB 100,000.
2. Convergence of Technical Routes
   : More automakers choose to adopt mature Huawei intelligent driving solutions instead of self-developed investments, which accelerates the establishment of industry technical standards but also brings the risk of homogenization [16].

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As the first partner of Huawei’s Smart Selection Auto model, Seres has become the biggest beneficiary of the success of this business model. In 2025, Seres’ total sales reached 516,000 units, including 472,000 new energy vehicles, with the AITO brand contributing 420,000 units, accounting for over 81% [17].

:

• Leverage Huawei’s brand momentum and channel resources to quickly establish market awareness
• Share the dividends of Huawei’s intelligent technologies to achieve product strength enhancement
• Gain supply chain collaboration advantages by being integrated into the Huawei ecosystem

:

• Facing doubts about the “contract manufacturer” label, with brand independence impaired
• With the increase in Huawei’s partners, the risk of resource dilution rises (the sales share of AITO within HarmonyOS Smart Mobility dropped from over 85% in 2024 to 63% in 2025)
• Long-term reliance on Huawei’s technologies brings risks to strategic autonomy [18]

To address these challenges, Seres has taken two key actions: in July 2024, it purchased intellectual property rights related to “AITO” to unify market awareness of products and brands; in the same year, it completed a RMB 11.5 billion equity investment in Huawei’s Yinwang Company to gain more voice through capital linkage [19].

In addition to Seres, other automakers’ cooperation with Huawei shows different strategic considerations [20]:

: Enter the mid-to-high-end sedan and SUV markets through the Luxeed brand, with the Luxeed R7 breaking into the top five in the mid-to-large SUV market. Yin Tongyue, Chairman of Chery, compared the cooperation to “combination of offense and defense” – Huawei is responsible for scoring in technological innovation, while traditional automakers hold the bottom line of safety.

: Focuses on the high-end executive market, but has not met sales expectations (annual sales of less than 30,000 units), and new product planning has extended to new market segments such as off-road SUVs.

: Positioned in the ultra-luxury market, the Zunjie S800 received over 18,000 firm orders and delivered over 7,000 units within 175 days of its launch, verifying the collaborative tackling capability of China’s automotive industry chain in the million-yuan market [21].

: Deeply binds with Huawei through Avatr, while adopting Huawei Kunpeng ADS modular solutions for its Deepal brand, forming the “HI PLUS” co-creation model. This dual-track strategy not only ensures technological advancement but also maintains brand independence.

Facing competitive pressure from the Huawei ecosystem, traditional automakers have adopted diversified response strategies [22]:

1. Capital Binding
   : Changan and Seres have obtained technological priority and decision-making participation rights by investing in Yinwang Company, transforming from “paid users” to a “community of interests”.
2. Technological Balance
   : BYD provides two intelligent driving systems, its self-developed “Sky Eye” and Huawei Kunpeng ADS, for users to choose from on its Fang Cheng Bao models; while using Huawei’s technologies for Deepal, Changan also heavily invests in its self-developed “Tianshu Intelligent Driving Assistance” system.
3. Differentiated Positioning
   : Joint venture brands such as Volkswagen and Toyota choose to equip Huawei HarmonyOS Cockpits, CATL batteries, or local intelligent driving solutions to quickly make up for their intelligent shortcomings.

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Based on the current development trend, the new energy vehicle market will present the following characteristics in 2026:

: The industry predicts that China’s automobile exports will exceed 8 million units in 2026, including approximately 3.5 million new energy vehicles. Overseas factories of enterprises such as BYD and Chery will enter a concentrated production period, and competition will upgrade from product export to a full-chain contest of localized production and technical standard export.

: L3-level autonomous driving is expected to enter the first year of large-scale commercial use in high-speed scenarios in 2026; L2-level assisted driving is expected to become a standard feature for models priced at RMB 100,000, with a penetration rate exceeding 70% [23].

: With the completion of the Five ‘JIE’ brand matrix, it is highly likely that HarmonyOS Smart Mobility’s sales will exceed 1 million units in 2026. AITO will continue to be the main sales contributor, and new brands such as Zunjie and Shangjie are expected to contribute incremental sales.

:

• Intensified internal competition among multiple brands, with market overlap between the “JIE” series and “JING” series
• Partners’ concerns about technological dependence may affect long-term cooperation stability
• Resource competition may lead to a decline in service quality

:

• Verify the feasibility of different cooperation models through a “horse race mechanism” and quickly iterate and optimize
• The capital binding model enhances ecological cohesion and forms competitive barriers
• Technological scale effects dilute R&D costs and increase profit margins

For investors focusing on the new energy vehicle industrial chain, the rise of Huawei’s Smart Selection Auto business brings the following insights:

1. Value of Core Intelligent Suppliers Highlighted
   : Component suppliers within the Huawei ecosystem are expected to achieve stable order growth, especially in core technology fields such as LiDAR, intelligent driving chips, and intelligent cockpits.
2. Valuation Re-rating of Partner Automakers
   : Automakers deeply bound to Huawei (such as Seres and Avatr) are expected to obtain technological premiums, but the risk of single customer dependence needs to be cautioned against.
3. Increased Transformation Pressure on Traditional Automakers
   : Automakers that fail to establish advantages in the intelligent field will face the risk of market share loss, and industry differentiation will further intensify.

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The AITO M7’s delivery of over 400,000 units is not only a market success of a single model, but also a phased verification of Huawei’s Smart Selection Auto business model. This achievement shows that the ecological cooperation model of “technological empowerment + brand endorsement + channel sharing” has strong competitiveness in the Chinese automobile market.

From the perspective of industrial transformation, Huawei’s Smart Selection Auto business is reshaping the new energy vehicle market landscape from three dimensions: first, establishing a product system covering all price ranges through the Five ‘JIE’ brand matrix, directly impacting the traditional luxury brand market; second, taking intelligent technology as the core driving force to accelerate the establishment and popularization of industry technical standards; third, building a “community of interests” through capital linkage to form differentiated competitive barriers.

However, this model also faces challenges such as intensified internal competition and weakened autonomy of partner automakers. In 2026, as more new models are launched and market competition deepens, whether Huawei’s Smart Selection Auto business can strike a balance between scale expansion and quality deepening will be a key variable determining its long-term competitiveness.

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[1] Huawei Terminal Official Weibo - Cumulative Deliveries of All AITO M7 Models Exceed 400,000 Units (https://weibo.com/huaweidiary)

[2] Node Finance - Seres Guo Feng: The Phenomenal Development of AITO Cannot Be Separated from Product Strength, Service Strength, and Brand Strength (https://caifuhao.eastmoney.com/news/20260105190744039593470)

[3] Auto Prophet - 2025 AIEV Sales List Released! Seven Giants including Huawei and Xiaomi Siege Tesla’s RMB 10 Trillion Market (https://auto.gasgoo.com/news/202601/9I70441754C501.shtml)

[4] Investment Journal - 10 Years of Ups and Downs for New Energy Vehicle Startups: Competing for Supremacy and Survival (https://news.pedaily.cn/202601/559672.shtml)

[5] Securities Times Network - Huawei Officially Releases! Yu Chengdong: The Best SUV Under RMB 10 Million is Here (https://www.stcn.com/article/detail/1075401.html)

[6] Caijing Magazine - 2025 Auto Observation | Differentiation Emerges in the New Energy Vehicle Industry, a Trillion-Yuan New Blueprint is Unfolding (https://www.mycaijing.com/article/detail/561643)

[7] Sina Finance - The Fifth Year of Not Building Cars: In 2025, Automakers Can No Longer Avoid Huawei (https://finance.sina.com.cn/cj/2025-12-28/doc-inheihxp0823623.shtml)

[8] Tian Tian Finance - From Million Deliveries to Pattern Reconstruction: HarmonyOS Smart Mobility’s “Five JIEs Gather Momentum” Leads China’s Luxury Car Breakthrough (https://www.tfcaijing.com/touch/article/page/66444131452b5a42442b576e7a65672b3336747a45673d3d)

[9] Zhihu Column - The “First-Gen Veterans” in the Huawei Ecosystem and Their New Challenges (https://zhuanlan.zhihu.com/p/1991498683548734917)

[10] Eastmoney - High Growth Cannot Hide Losses, Avatr’s Over RMB 10 Billion Investment Cannot Buy Competitive Advantages (https://m.caizhongshe.cn/news-5763653773575012599.html)

[11] China Times Network - 2025 New Energy Vehicles: Under the Surface of Growth, the Pattern of New Startups is Acceleratingly Reshaped (https://finance.eastmoney.com/a/202601033607663245.html)

[12] Sina Securities - Surpassing Tesla! BYD Wins the 2025 Global Pure Electric Sales Championship (https://finance.sina.com.cn/tech/2026-01-07/doc-inhfmyct6365928.shtml)

[13] China Automobile Dealers Association - 2025 January-September China Automobile Residual Value Rate Research Report

[14] CCTV News - Live Interview with Zhang Xinghai, Chairman of Seres, in “Together”

[15] Huawei Official Data - Kunpeng Intelligent Driving System (ADS) Cumulative Assisted Driving Mileage Exceeds 5 Billion Kilometers (November 2025)

[16] Ping An Securities - 2024 High-End New Energy Vehicle Market Research Report

[17] Seres Group Official Data - 2025 Annual Sales of 516,000 Units (January 2026)

[18] Seres Hong Kong Stock Announcement - Plan to Purchase AITO Intellectual Property Rights and Participate in Yinwang’s Equity (July 2024)

[19] Changan Automobile Announcement - Avatr Acquires 10% Stake in Huawei’s Yinwang for RMB 11.5 Billion (August 2024)

[20] Official Announcements and Financial Reports of Various Automakers - Cooperation Agreements between Chery, BAIC, JAC, SAIC and Huawei

[21] JAC Motors Official - Zunjie S800 Receives Over 18,000 Firm Orders Within 175 Days of Launch (January 2026)

[22] Industry Interviews - Competitive Strategies of Various Automakers Against the Huawei Ecosystem (December 2025)

[23] Ministry of Industry and Information Technology - Approval Document for L3-Level Autonomous Driving Commercial Operation (December 2025)