SERES July EV sales fall 45.65% as China price war bites

SERES' July new energy vehicle sales fell 45.65% year over year to 24,229 units, deepening a slowdown that has cut the Huawei-backed automaker's delivery momentum through the first seven months of 2026.

The Chongqing-based company, whose AITO brand pairs with Huawei's smart-driving systems, sold 26,679 total vehicles in July, down 44.35% from a year earlier, according to its monthly filing. New energy vehicles accounted for the bulk of deliveries at 24,229 units.

Cumulative sales in the first seven months reached about 223,200 vehicles, down 9.45% year over year, while new energy vehicle deliveries totaled 203,000 units, a 6.31% decline. The July drop marks a sharp acceleration from the year-to-date pace, pointing to weaker demand through the summer.

The slide comes as China's electric vehicle market enters a fresh round of price competition. Rivals including BYD, Geely and Xiaomi have cut prices and launched new models to defend share, squeezing smaller players. SERES shares fell 3.68% on Monday, with short selling at 9.5% of turnover, according to exchange data.

What the July slump means

The July figures suggest SERES is losing ground in a market where larger rivals are scaling faster. China still posted large EV sales in June, though year-over-year growth eased, according to industry data. For SERES, the 45.65% drop in new energy vehicle sales — against a cumulative decline of just 6.31% — implies the company's recent months have deteriorated sharply.

SERES' reliance on Huawei for its AITO brand leaves it exposed to competition from the same technology partners that supply rivals. The company's stock, which trades on the Hong Kong exchange, faces pressure as investors weigh whether the sales slump reflects a temporary lull or a structural loss of share to BYD, Xiaomi and Leapmotor.

The broader sector is consolidating around scale. BYD, the country's largest EV maker, and Geely continue to absorb demand through aggressive pricing, while Xiaomi's entry into the passenger EV market has added another competitor for the mid-range segment where AITO competes. Battery supplier CATL, which counts SERES among its customers, has also pushed down pack costs, enabling rivals to undercut on price.

For investors, the question is whether SERES can defend its niche. The company's July short-selling ratio of 9.5% suggests traders are positioning for further downside. A recovery would depend on new AITO model launches and whether Huawei's brand pull can offset the pricing pressure from larger competitors.

This article is for informational purposes only and does not constitute investment advice.