Huawei’s car-making partner Chongqing Sokon Group announced on July 11 that it has submitted a proposal to change the company’s name to Seres Group Co., Ltd. Seres is a new energy vehicle brand owned by Sokon.
Sokon said that driven by both policy and market factors, the new energy vehicle market has shown explosive growth. Based on years of cultivation of the industry and deep consideration on the development of the automobile industry, the company has laid out its new energy vehicle business since 2016. At present, it has made a number of technological innovations in the fields of assembly, electric driving, intelligent interconnection, automated driving, and more, and has cultivated and formed a pure electric drive intelligent extended range platform (DE-i) with independent intellectual property rights.
The name change is intended to facilitate investors to accurately understand its current company positioning, to match the company name with business and strategic planning, and to unify the company’s brand image.
At present, Sokon Group has formed competitive technologies and products in the new energy vehicle field. In the first quarter of 2022, its new energy vehicle business accounted for 48.28% of the company’s operating revenue. The firm said that the purpose of the renaming is to make the company name more suitable for the actual situation of the company and the needs of the company’s business development.
Previously, due to the cooperation between its automobile brand Seres and Huawei, Sokon Group became the focus of public attention. On December 23 last year, Seres released the AITO M5 model together with Huawei. On July 4, the AITO brand officially launched its second product – the AITO M7 – a full-size new energy SUV.
In June, the sales volume of Seres reached 7,658 units, a substantial increase of 524.12% year-on-year. From January to June this year, the cumulative sales volume of Seres reached 21,581 vehicles, an increase of 884.98% year-on-year.
According to the sales list of new energy SUVs released by the China Passenger Car Association in June this year, the AITO M5 ranks 8th, with monthly sales of 7,021 units. This is the third consecutive month for the AITO M5 to rank in the top ten since its initial delivery in March this year.
The cooperation with Huawei has also greatly affected the share price of Sokon Group. On April 27 this year, Sokon hit a low point of 32.70 yuan ($4.86) per share. Since then, influenced by factors such as the climbing sales of the AITO M5, the share price of Sokon Group has risen sharply in May and June, achieving a new high of 90.5 yuan per share on June 28, after which it fell slightly.