Sales and Listing Pressures Mount; Can Avatr Management Adjustments Break the Deadlock?

Avatr's recent management adjustments have sparked considerable discussion within the industry.

According to relevant reports, Wang Hui, Executive Vice President of Changan Automobile and Chairman of Avatr Technology, will shift his focus to the group's global business next, leading the Southeast Asian and Central & South American markets; Chen Zhuo, who was promoted to Vice President in June this year, will take on more of Avatr's daily operations and business advancement. It needs to be stated that currently, Wang Hui remains Chairman of Avatr Technology and Executive Vice President of Changan Automobile, overseeing a portion of overseas business.

At first glance, this is a conventional matching of personnel to roles — Wang Hui already has senior experience in overseas business, so doing familiar work is natural; Chen Zhuo, as part of the younger generation of management, taking over a high-end brand also aligns with the training rhythm. However, combined with Avatr's current development stage and Changan's overall performance situation, behind this adjustment lies the current development situation of the brand and the group.

Three-party resources support, brand still in ramp-up phase

As a high-end new energy brand jointly built by Changan, Huawei, and CATL, Avatr's starting point can be said to be quite high. Manufacturing, intelligent technology, and battery — the three core links, all supported by industry top players, market expectations were maxed out when the brand first launched.

But developing to now, the brand is still in the ramp-up investment stage. Financially, cumulative losses from 2022 to 2025 exceeded 13.2 billion yuan, not yet exiting the loss period of the investment phase. In terms of sales, cumulative deliveries in the first half of this year were about 27,619 vehicles, a 51.3% year-on-year decrease. The annual target of 220,000 vehicles set at the beginning of the year was only 12.6% completed in half a year, the progress gap is relatively large. It is worth knowing that the domestic new energy market overall still maintained growth this year, Avatr's development pace has opened a considerable gap with the overall industry trend.

Wang Hui completes multiple strategic frameworks

Internally, he deepened the three-party strategic cooperation, established a full set of integrated development models, and also led the investment matters in Huawei's Yinwang Company. In November 2025, the cooperation with Huawei was upgraded to the HI PLUS joint co-creation model, no longer simply technology supply, but collaborative across the entire value chain from user insights, product definition to R&D, integrated marketing, and team building.

Externally, he clarified the global development logic for Avatr, promoted the brand entering global 34 country markets, and planned to expand the market scope to 46 to 50 countries in 2026.

However, these top-level layouts are currently still in the process of gradual implementation and have not yet been fully converted into tangible terminal sales and operating performance.

And the cooperation with Huawei also has topics that need to be sorted out in the long term. Currently, Huawei cooperates with multiple car companies at different depths. Avatr how to find its own positioning within Huawei's cooperation map, and strive for more adaptive resource allocation, is a matter that needs to be continuously explored in the brand development process.

In terms of capitalization, Avatr's HK listing is also being promoted. In November 2025, the company first submitted a listing application to the Hong Kong Stock Exchange, did not complete the hearing process within the specified time, and the application automatically expired on May 27, 2026; on June 30, the company resubmitted the listing materials, currently in the audit promotion stage, the specific listing schedule has not yet been clarified.

Overseas growth momentum is good, but also faces competition and localization challenges

In the first half of this year, Changan's overseas sales reached 455,000 vehicles, a 51.9% year-on-year increase; overseas revenue was 21.942 billion yuan, a 78.77% year-on-year increase, accounting for the proportion of total revenue from 16.89% in the same period last year to 33.43%. More importantly, the gross profit margin of overseas business reached 20.13%, significantly higher than the domestic business 11.67% level, having become an important growth and profit support for the group.

But behind the good-looking data, there are also many realistic challenges. First is market competition, Southeast Asia, Central & South America and other regions, now Chinese car companies are all accelerating layout, BYD, Geely, Chery, Great Wall and other brands have already entered, market competition continues to intensify, long-term gross profit margins face downward pressure.

Second is the difficulty of localization implementation. When Wang Hui was responsible for Southeast Asian business before, he proposed a target that the localization rate of Thailand factory would reach above 80%. But supply chain building, local talent training, compliance system construction and other work, all need long-term time and capital investment, the process of target landing is not easy. If the localization progress falls short of expectations, cost advantages will also be affected.

So this time letting Wang Hui manage some overseas business is also hoping to leverage his past experience to further consolidate the development foundation of the overseas market and consolidate the growth momentum.

Chen Zhuo takes over, the core is to grasp landing execution

Chen Zhuo, who took over Avatr, was just promoted to group vice president in June this year, and will face multiple realistic topics in the brand development process next.

Current Avatr does not lack top strategic frameworks, nor lacks three-party resource backing, but the operational work to make up is still many: how to narrow losses, how to improve terminal sales, how to smoothly promote the listing process, are all very practical problems. Brand positioning is high-end market, how to convert technical and resource advantages into product power perceived by consumers, how to improve brand volume and channel efficiency, are the key points that operations need to push.

After all, the previous stage was more about setting directions and building frames, next more tests are landing ability and refined operations. Especially in the three-party cooperation mode, how to coordinate the resources of all parties well, improve collaboration efficiency, let cooperation value fully release, very tests the new management team's operation ability.

As a core member of the Changan new generation management, Chen Zhuo's takeover has also injected new execution power into the brand, but from strategic planning to market results, there are still many links that need to be connected in between.

The logic of group layout behind the adjustment

This personnel adjustment, after all, is also a resource re-layout of Changan in the industry adjustment period.

In the first half of this year, Changan Automobile revenue decreased by 9.71% year-on-year, net profit attributable to shareholders decreased by 64.32% year-on-year. Domestic car market competition continues, price war background domestic business gross profit margin narrowed to 11.67%, profit pressure has appeared.

Avatr as Changan layout high-end new energy important carrier, currently still in investment period, not yet into profit contribution stage, continuous capital investment for the group is also a huge consumption.

So the logic of this wave adjustment is also clear: put the executive with the most experience to the overseas market with the highest growth certainty, guard the basic disk; let young managers operate high-end brands, promote landing execution. One side takes care of current performance stability, one side lays out long-term brand upgrade, is a very pragmatic development idea.

For Avatr, the big direction and framework are basically formed, next fight is refined operations and landing ability. This management team adjustment can bring how many changes, finally still has to look at product performance and market feedback.

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