Huawei's automotive business is losing momentum as China's car market slows. According to CNBC, Harmony Intelligent Mobility Alliance (HIMA) delivered just under 37,500 vehicles in September, down 29% from a year earlier and marking a third consecutive monthly decline. That comes as China's auto market is on track for its worst year since 2021, with sales down more than 20% over roughly the first three quarters, based on China Passenger Car Association data cited by CNBC.
The decline contrasts sharply with rivals. BYD posted double-digit gains in each of the past three months, with monthly sales well above 400,000 units. Leapmotor also maintained rapid growth, topping 100,000 deliveries a month since July. HIMA, whose five vehicle lines reflect partnerships with manufacturers such as Chery and Seres, has sold more than 1.56 million units since the first Huawei-powered car launched in late 2021.
Despite the slowdown, Huawei is deepening its auto ties. On Oct. 1, it announced a five-year cooperation agreement with Seres, including the joint establishment of an Aito business team. Seres, which makes the Aito EV line, has seen its Shanghai-listed shares drop by more than 60% so far this year. Tesla China had yet to report September deliveries as of Wednesday afternoon, the source noted.