SERES reportedly says, Huawei will be paid for every AITO car sold

Huawei recently said to transfer its ‘AITO’ trademark to SERES. The company wants to grow as a smart car solution supplier rather than becoming an automobile maker. Adding to this, SERES now said that Huawei will get paid for every AITO car sold.

Regarding AITO trademark selling, the 21st Century Business Herald interrogated SERES. In response, a spokesperson said that Huawei will get paid a sales service fee for every SERES AITO smart car sold in the Chinese automobile market.

The exact amount of this sales service fee is unknown. When asked, the SERES spokesperson stated that the specific proportion is a part of the core business secret. Hence, it won’t be convenient to disclose it in front of media or consumers.

Being a smart car solutions supplier, Huawei has two ways to collect profit. The first is phased development cost. This includes charges for smart car solutions and parts equipped in the vehicle. The other is the service fee for selling cars at Huawei stores.

SERES reportedly says, Huawei will be paid for every AITO car sold (Image Credits: AITO/Weibo)

A few rumors say that Huawei will earn around 10% of the sales on each car. For instance, the sale of AITO M5 worth 270,000 yuan will give 27000 yuan to Huawei. 2% of this fee may count as tech licensing while 8% refers to the marketing fee.

But SERES has denied revealing the fee structure for the moment. The company says that the overall transaction will benefit both parties in terms of economic growth and popularity in the market.

You can read more details on this matter HERE.