(Yicai) July 3 -- Shares of Seres Group fell after the Chinese automaker said it will purchase the trademarks and patents of Aito, the electric vehicle brand co-developed with Huawei Technologies, from the Chinese telecoms giant.

Seres [SHA: 601127] was trading down 1 percent at CNY89.10 (USD12.25) as of lunch break in Shanghai today, after earlier plunging as much as 4.5 percent.

Seres will purchase 919 registered or pending text and graphic trademarks and 44 exterior design patents related to Aito for CNY2.5 billion (USD344 million), with the full payment expected to be completed by the end of the year, the Chongqing-based firm announced late yesterday.

Huawei will not make cars on its own but will continue to support Seres in producing and selling Aito models, the Shenzhen-based company reiterated yesterday, adding that it will provide intelligent connected vehicle technologies to automakers so they can make smart vehicles.

Aito sold a monthly record of 40,000 electric cars in June, with the total for the first half of the year exceeding 110,000 units, according to industry data. Huawei and Seres will likely release new Aito models this year.

Seres and Huawei recently signed a deal to further their business partnership, Yicai learned. The pair would bring their advantages into full play and co-design new energy vehicle models to develop Aito into a world-class luxury brand and achieve success.

Editor: Tang Shihua, Futura Costaglione