Chinese automaker Seres, in partnership with Huawei to produce the Aito EV brand, reported strong financial results for the first three quarters of 2024, driving notable growth for its supply chain. Taiwan-based suppliers, particularly Kwang Hwa Electronic Material, saw a significant revenue boost in September due to increasing orders from Seres.
Seres, founded in 1986 as a car seat spring maker, transitioned to the new energy vehicle (NEV) sector in 2016. In collaboration with Huawei, the company launched the Aito M5 in 2021, followed by M7 and M9 models in 2022. Now, Seres focuses on NEV and electric powertrain R&D, manufacturing, sales, and services.
In September, Seres achieved sales of 37,407 vehicles, a 265% increase year-on-year. Total sales from January to September 2024 reached 316,713 units, marking a 364% jump compared to the previous year. Revenue for the first three quarters is expected to range between CNY 103 billion and CNY 110 billion, reflecting an annual growth of over 500%. The M9 model, launched nine months ago, has sold over 150,000 units, while the M7 has reached 200,000 deliveries in its first year.
Taiwanese supplier Kwang Hwa saw its September revenue surge to NT$452 million, up 26.95% from August, driven by increased orders from Seres and BYD. The company's transition from second-tier to first-tier supplier has shown early success, and it anticipates continued growth as its major clients maintain strong order volumes.
Kwang Hwa also noted that China's recent macroeconomic measures—such as incentives for NEV purchases and efforts to stabilize the real estate market—are helping to boost new car sales. Looking ahead to the fourth quarter, Kwang Hwa remains cautiously optimistic, expecting stable demand from major clients, while new products and orders are poised to further strengthen its performance.
Kwang Hwa's consolidated revenue for the first nine months of 2024 totaled NT$3.668 billion, down 12.47% year-on-year, but with signs of recovery from stronger NEV demand.
