Huawei’s car-making partner Seres expects reduced 2023 losses, with M7 and M9 EVs paving road to profitability
- Seres expects its losses for last year to fall between US$295 million and US$380 million, narrowing from US$535 million in 2022
- The carmaker is the most important EV partner of Huawei, a collaborator on the Aito brand, which just launched its latest M7 SUV
Seres said it expects the final tally of its 2023 losses to fall in the range of 2.1 billion yuan (US$295.6 million) to 2.7 billion yuan, which narrowed from its 3.8 billion yuan loss in 2022, according to the company’s earnings estimates last Thursday. It estimated revenues increased by as much as 7 per cent to 36.5 billion yuan last year.
The carmaker attributed the ongoing losses to increased investment in research and development in high-end EV technologies, poor sales in the first three quarters and higher marketing costs.
This is the fourth consecutive year of losses for Seres, which has collaborated with Huawei on the Aito brand of vehicles since December 2021. The company expects “profitability to be further enhanced” from sales of its M7 and M9 models.
While the prospects for profitability remain to be seen, Aito is already a main revenue driver for the once obscure carmaker.