In August 2026, Seres Group reported NEV sales of 24,244 units, a steep year-on-year decline of 43.96% — a sharp contrast to the overall growth trajectory of China's NEV market. The core AITO brand saw an even more severe drop of 49.68%, while cumulative NEV sales for January-August fell 12.58%. Against the backdrop of BYD exceeding 440,000 units and Leapmotor surpassing 100,000 in August, Seres' correction has triggered deep discussion about its product cycle timing and competitive strategy.
Core Data: Double-Digit Declines Across the Board
Seres Group's August 2026 production and sales report presents a sobering set of figures:
| Metric | August 2026 | YoY Change | Jan-Aug Cumulative | Cumulative YoY |
|---|---|---|---|---|
| NEV Production | 24,742 units | -42.55% | 229,700 units | -13.22% |
| NEV Sales | 24,244 units | -43.96% | 227,300 units | -12.58% |
| Seres Auto Sales | 20,652 units | -49.68% | 201,900 units | -14.07% |
| Other Models Sales | 3,440 units | +34.59% | 23,700 units | -26.90% |
| Total Vehicle Sales | 27,684 units | -39.58% | 250,900 units | -14.17% |
The data reveals that the sales contraction is concentrated in the Seres Auto brand (which houses the AITO marque), where year-on-year sales nearly halved. The "other models" segment did grow 34.59%, but its volume is too small to offset the core brand's deceleration.
Comparative Analysis: A Stark Contrast to Industry Trends
Placing Seres' numbers in the broader industry context makes the divergence even more pronounced:
- BYD: August sales of 440,273 units, up ~18% YoY
- Leapmotor: August deliveries of 103,129 units, continuing its ascent
- Li Auto: August deliveries of 37,679 units, up 32.07% YoY
- Xiaomi Auto: Monthly deliveries stable above 30,000 units
- Seres: August sales of 24,244 units, down 43.96% YoY
In a 2026 NEV market that continues to expand overall, Seres stands out as one of the few major players posting significant negative growth. This counter-trend performance drew attention from both capital markets and industry analysts — Seres' A-shares and H-shares both declined noticeably following the August data release.
Underlying Causes: The Pain of Product Transition
Seres' sales correction did not come without warning. The company's first-half 2026 financial results had already sent alarm signals:
- H1 revenue of 57.493 billion RMB, down 7.87% YoY
- Total profit of -2.353 billion RMB, down 163.18% YoY
- Net profit attributable to shareholders of -1.717 billion RMB, down 158.38% YoY
Management attributed the poor results to "changes in product sales mix, with core models in Q2 undergoing product iteration transitions, while production capacity and sales scale effects were not fully realized." This explanation aligns closely with the sales trajectory shown in the data.
As a close Huawei partner, Seres' AITO brand had previously achieved phenomenon-level success with models like the M7 and M9. However, in 2026, AITO faces mounting headwinds:
- Competitive encirclement: Li Auto's L series, Xiaomi SU7, and other Harmony Intelligent Mobility brands are diverting AITO's target customers
- Product aging: Core models like the AITO M7 have been on the market for an extended period, with declining consumer freshness
- Transition gap: Next-generation core models are in a pre-launch transition phase, limiting promotional flexibility for older models
Outlook: A Critical Transformation Window
Despite near-term pressures, Seres' fundamentals retain some resilience. The company completed its Hong Kong IPO in 2025, raising 14.283 billion HKD, leaving it with ample cash reserves. Its deep partnership with Huawei also continues to evolve, with the Harmony Intelligent Mobility ecosystem remaining a core competitive moat.
The critical question is whether Seres can execute the key product leap in H2 2026. Key variables the market is watching include:
- Whether next-generation AITO core models can launch successfully in Q4 and restore growth momentum
- Whether Huawei's autonomous driving technology upgrades (such as ADS 4.0) can deliver differentiated selling points for AITO
- Whether a second growth curve beyond Seres Auto can be established
For global buyers and analysts tracking China's NEV market, the Seres case offers an important analytical dimension: even with a top-tier partner like Huawei, product iteration cadence and independent profitability capability remain the core variables determining an automaker's long-term competitiveness. For more industry data and market analysis, visit EX1000.COM.
