[Lead: Avatr has obtained the L3 road test license, which means it belongs to the first echelon of the Huawei cooperation system in the high-end intelligent driving field. However, at the same time, sales on the market side are under pressure, the second IPO push, and brand integration is imminent, Avatr is in a state of ice and fire where "technical strengths and resource strengths" coexist with "commercial weaknesses".]

Author: Cai Yan

Early July, Avatr announced it has obtained the L3-level autonomous driving test license. Relying on Huawei ADS high-end intelligent driving system, Avatr will conduct intelligent driving road tests up to 120 km/h on open roads in Chongqing, and plans to launch mass-produced models equipped with L3 functions in the second half of 2026.

The progress Avatr has made in L3 intelligent driving marks that the brand's high-end intelligent driving technology has officially moved from R&D to the field test phase. It is expected to become a key lever for the brand to break through industry involution and reverse the current low sales situation.

Recently, the updated prospectus submitted by Avatr to the HKEX disclosed another set of data. Avatr's cumulative deliveries from January to May 2026 were only 20,160 units, averaging less than 4,032 units per month, a year-over-year decline of over 50%. If including the 7,459 units delivered in June, the half-year delivery only accounted for 12.5% of the annual target (220,000 units).

At the same period, even though the domestic automotive market as a whole is under continuous pressure with monthly and cumulative sales showing double-digit year-over-year decline, the overall decline in the new energy market was about 15%. However, specifically in the "New EV Brands, Second-Gen Startups" niche segment, the monthly sales threshold for top new EV brands has long broken 30,000 units. Harmony Intelligent Mobility Alliance's monthly sales are stable at around 50,000 units, and Leapmotor is leading by a leapfrog margin.

IM Motors, which is in the same competitive ecosystem position as Avatr, also achieved sales of 31,000 units from January to May 2026, a year-over-year increase of 114%. It is worth noting that IM's 2025 performance was not as good as Avatr.

Avatr is at a node full of contradictions. The L3 license is a proof of Avatr's technical strength, but it cannot cover a cruel reality: In terms of brand positioning and sales, Avatr, after a brief surge, is still under pressure.

High Opening, Low Closing

As one of the automotive brands born with luxury resources among "Second-Gen Startups", Avatr combines Changan Vehicle Manufacturing, Huawei High-end Intelligent Driving, and CATL Battery Power core capabilities. The three giants' combined support made the CHN Model once a benchmark sample for high-end car manufacturing.

Since deliveries began in December 2022, total deliveries increased from 20,000 units in 2023 to the brand's peak in 2025.

Full-year 2025 deliveries reached 122,700 units, December's single-month sales reached 10,400 units, achieving 10 consecutive months of sales exceeding 10,000. Full-year revenue reached 25.631 billion Yuan, a year-over-year increase of 68.7%, and gross margin was 9.4%. Revenue from 2023 to 2025 also grew, Avatr's cumulative revenue over three years was approximately 46.5 billion Yuan, with an annual compound growth rate over 113%. Revenue grew 4.5 times in three years, with vehicle business revenue growing approximately 4.3 times over three years.

Avatr's brand has experienced 3 years of growth. Relying on a set of luxury resources, it indeed captured good book data, but digging deeper reveals that at this stage, Avatr's sales scale has never covered the losses. Avatr openly stated in the prospectus: "It may continue to record net losses for the year ended December 31, 2026".

More critically, comparing Avatr's two IPO prospectus submissions, the initial prospectus showed a gross margin of 10.1% and revenue of 12.208 billion Yuan for the first half of 2025. However, in the latest prospectus, despite revenue growth year-over-year and quarter-over-quarter in the second half, the gross margin decreased (9.4%), further indicating a decline in profitability.

The key reason behind Avatr's revenue surge and continuous losses lies in: brand perception and market size.

First is brand perception. From 2022 to 2023, China's new energy products were shifting from scale expansion to quality upgrade. At that time, Avatr supported by the three giants was indeed "having traffic, having strength, and having uniqueness". When Avatr was first established, fewer than 5 companies had Huawei's technical support.

Unfortunately, at the beginning of the brand's launch, Avatr did not have a high opening and strong closing, but instead adopted the pragmatic style of traditional brands, thus missing the best communication node.

Since 2024, with more and more car companies embracing Huawei, Avatr's unique narrative of "China's Automotive Industry Second Generation" was quickly leveled by "Five Worlds Three Realms".

Taking this L3 road test as an example, GAC and Huawei ADS' Qijing GT7 also obtained Guangzhou L3-level autonomous driving road test permission. In this way, under the same situation of Qijing GT7 being equipped with Huawei intelligent driving, Avatr finds it difficult to obtain "scarcity".

Recently, data released at the 2026 Huawei ADS Technology Conference showed that by April, Huawei ADS cooperative brands exceeded 25, and mass-produced models equipped with Huawei ADS exceeded 50.

This situation is not limited to intelligent driving technology. Last year, CATL officially announced that Avatr issued the first batch of Xiaoyao Super Extended-Range Hybrid Batteries. Within a few months, some automakers followed suit with supporting equipment, including same-level competitors like Smart Driving R7.

People remember Huawei's intelligent driving and CATL's batteries, but they cannot remember the Avatr brand itself. Even though Avatr has the advantage of "first batch adoption" and is a "Yuanwang Shareholder", Avatr has not yet established clear market brand perception, which is a more serious problem than losses.

In short, what Avatr lacks is not technology, but the reason of "Irreplaceable".

Especially in the most competitive price range of 200,000 to 400,000 Yuan at this stage, whether it is Zeekr, AITO, Tesla, Xiaomi, or NIO, XPeng, as long as these brands are mentioned, consumers can clearly associate what the brand's core selling point is, while Avatr is blurred.

Regarding design, Avatr has good original design, which can indeed move some young consumers' hearts, but in the high-end market, aesthetics and design can only be a stepping stone. Regarding intelligent driving, models equipped with the full suite of Huawei ADS on the market are so numerous they are countable, and even priced lower than Avatr. Regarding batteries, consumers usually only remember the brand, not the specific battery model. Today, consumers in China's 200,000 to 400,000 Yuan range have been trained with a car selection model. They need differentiation and uniqueness, not a simple "Giant Mix".

Multi-faceted Adjustments

Regarding the impact of sales scale, Avatr admitted in the prospectus: "Relatively small procurement volumes limit our bargaining power with parts suppliers".

Changan announced in April this year strategic integration of Avatr and Deepal Auto. Deepal and Avatr will achieve deep synergy in R&D, procurement, supply chain, channels, and multiple dimensions, ultimately achieving a reduction in comprehensive operating costs by 20%-30%.

Of course, integration is not limited to cost reduction. How to guarantee the independence and differentiation of two brands, and how to solve problems such as Avatr's core competitiveness not being internally diluted in the future, will be Changan's core challenge. Currently, on the market, Lynk & Co and Zeekr under Geely are good templates for medium-end and high-end brand segmentation.

It is worth mentioning that Avatr is already quite effective in going overseas and channel levels.

In 2025, Avatr's overseas revenue increased from 223 million Yuan to 1.398 billion Yuan, revenue ratio increased to 5.5%. By the end of 2025, Avatr had laid out over 80 sales outlets in 38 countries and regions. Among them, Avatr 11 has long held the top rank in luxury electric vehicles in Thailand, occupying 10% market share in high-end electric vehicles in the UAE.

Regarding channels, Avatr started channel transformation in May 2024. Most stores have now告别 pure self-operated models, retaining only a few direct stores in core first-tier cities. The effect of channel adjustments is immediate. Distributor revenue ratio jumped from 1.1% in 2023 to 49.2% in 2025. More critically, sales efficiency significantly improved. Avatr's 2025 sales expenses only increased by 240 million Yuan, but leveraged 10.4 billion Yuan in revenue growth.

In the second half of this year, Avatr's new car sales, L3 commercialization, overseas expansion progress, and whether listing can proceed smoothly, these are all core variables for Avatr's breakthrough.

Comment

At this stage, the most realistic problem Avatr needs to face, holding 11.5 billion Yuan joint venture equity, obtaining L3 test license, promoting brand integration, etc., are all "tactical bonus points". The real lifeline is still the deepening of "Brand Storytelling". After all, the scariest thing for a brand is having no strategy, only tactics. Brand building has never had shortcuts. Currently, Avatr's direction has been clearly adjusted, and actions have been launched. The rest is left to time and products.

(This article is original to "He Yan Yue Che", no reprinting without authorization)

For Avatr in 2026, the days aren't going well. The Hong Kong Stock Exchange IPO prospectus automatically expired after just 6 months, which already raised many doubts. The reality of poor Q1 sales and a sharp year-on-year drop in April alone further led many to believe whether the brand backed by the three giants Changan, Huawei, and CATL is already "done". So, can this high-end brand once considered limitless in potential still "turn the tide"?

Sales plummeted cliff-style, where is the problem?

Avatr, considered to be thriving next in 2025, has been "falling" since entering 2026. According to China Passenger Car Association data, Avatr cumulative deliveries in Q1 2026 were 11,392 units, a sharp 53.5% year-on-year drop, nearly double the industry average, monthly sales less than 40% of last year's peak. Compared with brands like Li Auto, Leapmotor, Xiaomi in the same period, the gap is even more visible.

They say sitting under a big tree is cool, and as a high-end brand backed by the three giants Changan, Huawei, CATL, why did Avatr fall behind so fast? In fact, looking at Avatr's current performance, the problem is not hard to find. Avatr initially had endorsement from the "Big Three", with three selling points "Changan strength + Huawei Smart Driving + CATL Battery" presented, it was still able to attract a large batch of consumers to buy.

But now, Huawei's technology has almost become the "public resource" of the whole industry, CATL's batteries are not unique to Avatr, Changan has other brands to balance, the original "Iron Triangle" exclusive halo gradually faded, Avatr naturally couldn't easily get consumer support.

Of course, Avatr could win over customers with its perfect product matrix and excellent service. Unfortunately, Avatr seems to not have this ability for now. On one hand, Avatr is stuck in a very competitive price segment, Tesla, BYD, Xiaomi, Zeekr and other brands each have their own territory, Avatr without clear tags wants to break in is really too hard.

And the "rapid iteration backstab" at the product end left users heartbroken. The "backstabbing event" happened last year, many still have an impression. Soon after Avatr 12 four-laser version launched, the brand launched new model equipped with 896-line dual-optical path LiDAR, AD performance greatly upgraded, old owners' vehicles instantly devalued, second-hand car depreciation rate up to 35% to 40%, triggering large-scale user complaints and reputation collapse. Plus 2026 Avatr new products haven't come for a long time, product rhythm "interrupted", consumer interest weak, Q1 sales hard to sustain.

Three chairmen changed in four years, how to fight this battle?

Sales decline is just surface problem, management continuous turbulence might be the "mine" buried long ago. Don't know if everyone noticed, from 2021 to now, Avatr has changed three chairmen. First Tan Benhong, then end of 2023 Zhu Huarong took over personally, to Sept 2025, "Post-80s" Wang Hui took over, equals three leaders change in four years.

During Tan Benhong period, Avatr took pure electric high-end route, result 2023 whole year only sold 27,600 units. Sales not very good, Avatr didn't give too many chances, directly changed Zhu Huarong to take over. Zhu Huarong's thinking was not same as previous, after taking office immediately turned, all series on extended range, and price dropped to 200,000 level, sales indeed pulled up, but also carried "downgrade" questioning. Arrived at Wang Hui, started talking "Anti-Involution", "Value Leap", promoting "Strategy 2.0".

Perhaps changing leaders' original intention was for brand to get better, but different senior management management concepts, decisions etc. will differ, so frequently changing senior management, brand's impact is also obvious. And the difference here also reflects Avatr's "Triangle Governance" problem, everyone knows Avatr backed by three big shots, but seems few people thought, three "big shots" with different interest demands, will it affect Avatr's normal "course" due to focus difference.

Behind each chairman stands different shareholder logic, Avatr fluctuated between "high and high" above 300,000, then pushed 219,900 Avatr 07 to probe market, after a while new model might price raise again. Whether this repeated wavering was influenced by different decision makers, we do not know. But a brand who themselves are wavering, to "fight" in high-end market, seems cannot make people produce too much confidence.

Making money overseas, but may not necessarily "save life"

Although domestic is a mess, but Avatr's overseas performance is quite good. Since Sep 2024 launch globalization, Avatr has entered more than 40 countries and regions, and in several markets has achieved stable profit. In Thailand, Avatr 11 starting price approx 447,000 RMB, long time dominating high-end pure electric sales rank first; In UAE, occupied local high-end EV 10% share; In Singapore, Avatr 11 sold to 1.56 million RMB, sales still rising. From its overseas results view, Avatr's tactic counts as successful.

But the problem is, overseas this amount, can turn Avatr next situation? Currently look, may not that optimistic. Avatr 2026 overseas target 55,000 units, hope to 2030 overseas ratio 40%, this idea sounds good, but Avatr truly walk out of loss mud, monthly sales need pull to 20,000 units above to have scale effect. Overseas this volume, put in bigger plate look, weight far from enough.

Look again at blood-making ability, Avatr 2024 loss 4.018 billion yuan, 2025 first half loss 1.585 billion yuan, 3.5 years cumulative loss over 11.3 billion yuan. Even if overseas year earn hundreds of millions, facing monthly loss several hundreds of millions domestic business, overseas that profit, might not even fill domestic loss fragment.

This is not saying Avatr overseas has no value, high-end positioning, brand premium, differentiation route, these directions are correct. But for a 2026 Q1 sales halved, IPO suspended, billion loss pressure brand, overseas current only bonus item, hard to use as lifeline straw. In other words, true turnaround battle, still need to fight in domestic. And this year passed good few months, Avatr next want "turnaround", probably also not that simple.

Conclusion

Avatr's foundation not thin, three industry giants endorsement, overseas market also developing, tech reserve not missing, foundation still very good. Only just, market competition also very fierce, give Avatr window period getting narrower. Back to start that question: Can Avatr turn around? This question's answer now cannot be certain. But can be foreseen is, Q1 sales halved, billion loss set there, IPO suspended, market competition day by day fierce, if its H2 cannot fight new hit, these "variables" will all press brand breathless.

For Avatr in 2026, the days aren't going well. The Hong Kong Stock Exchange IPO prospectus automatically expired after just 6 months, which already raised many doubts. The reality of poor Q1 sales and a sharp year-on-year drop in April alone further led many to believe whether the brand backed by the three giants Changan, Huawei, and CATL is already "done". So, can this high-end brand once considered limitless in potential still "turn the tide"?

Sales plummeted cliff-style, where is the problem?

Avatr, considered to be thriving next in 2025, has been "falling" since entering 2026. According to China Passenger Car Association data, Avatr cumulative deliveries in Q1 2026 were 11,392 units, a sharp 53.5% year-on-year drop, nearly double the industry average, monthly sales less than 40% of last year's peak. Compared with brands like Li Auto, Leapmotor, Xiaomi in the same period, the gap is even more visible.

They say sitting under a big tree is cool, and as a high-end brand backed by the three giants Changan, Huawei, CATL, why did Avatr fall behind so fast? In fact, looking at Avatr's current performance, the problem is not hard to find. Avatr initially had endorsement from the "Big Three", with three selling points "Changan strength + Huawei Smart Driving + CATL Battery" presented, it was still able to attract a large batch of consumers to buy.

But now, Huawei's technology has almost become the "public resource" of the whole industry, CATL's batteries are not unique to Avatr, Changan has other brands to balance, the original "Iron Triangle" exclusive halo gradually faded, Avatr naturally couldn't easily get consumer support.

Of course, Avatr could win over customers with its perfect product matrix and excellent service. Unfortunately, Avatr seems to not have this ability for now. On one hand, Avatr is stuck in a very competitive price segment, Tesla, BYD, Xiaomi, Zeekr and other brands each have their own territory, Avatr without clear tags wants to break in is really too hard.

And the "rapid iteration backstab" at the product end left users heartbroken. The "backstabbing event" happened last year, many still have an impression. Soon after Avatr 12 four-laser version launched, the brand launched new model equipped with 896-line dual-optical path LiDAR, AD performance greatly upgraded, old owners' vehicles instantly devalued, second-hand car depreciation rate up to 35% to 40%, triggering large-scale user complaints and reputation collapse. Plus 2026 Avatr new products haven't come for a long time, product rhythm "interrupted", consumer interest weak, Q1 sales hard to sustain.

Three chairmen changed in four years, how to fight this battle?

Sales decline is just surface problem, management continuous turbulence might be the "mine" buried long ago. Don't know if everyone noticed, from 2021 to now, Avatr has changed three chairmen. First Tan Benhong, then end of 2023 Zhu Huarong took over personally, to Sept 2025, "Post-80s" Wang Hui took over, equals three leaders change in four years.

During Tan Benhong period, Avatr took pure electric high-end route, result 2023 whole year only sold 27,600 units. Sales not very good, Avatr didn't give too many chances, directly changed Zhu Huarong to take over. Zhu Huarong's thinking was not same as previous, after taking office immediately turned, all series on extended range, and price dropped to 200,000 level, sales indeed pulled up, but also carried "downgrade" questioning. Arrived at Wang Hui, started talking "Anti-Involution", "Value Leap", promoting "Strategy 2.0".

Perhaps changing leaders' original intention was for brand to get better, but different senior management management concepts, decisions etc. will differ, so frequently changing senior management, brand's impact is also obvious. And the difference here also reflects Avatr's "Triangle Governance" problem, everyone knows Avatr backed by three big shots, but seems few people thought, three "big shots" with different interest demands, will it affect Avatr's normal "course" due to focus difference.

Behind each chairman stands different shareholder logic, Avatr fluctuated between "high and high" above 300,000, then pushed 219,900 Avatr 07 to probe market, after a while new model might price raise again. Whether this repeated wavering was influenced by different decision makers, we do not know. But a brand who themselves are wavering, to "fight" in high-end market, seems cannot make people produce too much confidence.

Making money overseas, but may not necessarily "save life"

Although domestic is a mess, but Avatr's overseas performance is quite good. Since Sep 2024 launch globalization, Avatr has entered more than 40 countries and regions, and in several markets has achieved stable profit. In Thailand, Avatr 11 starting price approx 447,000 RMB, long time dominating high-end pure electric sales rank first; In UAE, occupied local high-end EV 10% share; In Singapore, Avatr 11 sold to 1.56 million RMB, sales still rising. From its overseas results view, Avatr's tactic counts as successful.

But the problem is, overseas this amount, can turn Avatr next situation? Currently look, may not that optimistic. Avatr 2026 overseas target 55,000 units, hope to 2030 overseas ratio 40%, this idea sounds good, but Avatr truly walk out of loss mud, monthly sales need pull to 20,000 units above to have scale effect. Overseas this volume, put in bigger plate look, weight far from enough.

Look again at blood-making ability, Avatr 2024 loss 4.018 billion yuan, 2025 first half loss 1.585 billion yuan, 3.5 years cumulative loss over 11.3 billion yuan. Even if overseas year earn hundreds of millions, facing monthly loss several hundreds of millions domestic business, overseas that profit, might not even fill domestic loss fragment.

This is not saying Avatr overseas has no value, high-end positioning, brand premium, differentiation route, these directions are correct. But for a 2026 Q1 sales halved, IPO suspended, billion loss pressure brand, overseas current only bonus item, hard to use as lifeline straw. In other words, true turnaround battle, still need to fight in domestic. And this year passed good few months, Avatr next want "turnaround", probably also not that simple.

Conclusion

Avatr's foundation not thin, three industry giants endorsement, overseas market also developing, tech reserve not missing, foundation still very good. Only just, market competition also very fierce, give Avatr window period getting narrower. Back to start that question: Can Avatr turn around? This question's answer now cannot be certain. But can be foreseen is, Q1 sales halved, billion loss set there, IPO suspended, market competition day by day fierce, if its H2 cannot fight new hit, these "variables" will all press brand breathless.

Six-seater Flagship SUV is about to debut

Author | Rongxi

With the competition in new energy vehicles becoming increasingly fierce, shifting from competing on sales to competing on profits, from domestic markets to global markets, there are not many local brands that can achieve success in sales, reputation, and global expansion simultaneously.

Today, Avatr, which is surging forward, is becoming a ray of light in this bleak market.

With the product matrix continuously improving, the global footprint expanding, and profitability goals being achieved smoothly, Avatr's brand potential is being fully released. These development results also mark Avatr's formal entry into a new cycle of high-quality development where brand power, product power, and market competitiveness rise together, injecting a strong stimulant into the entire industry.

Actually, since its inception, Avatr has targeted the high-end smart electric vehicle track. From the first model Avatr 11 breaking through, to models like 12, 06/06T, 07 etc. gradually landing, within just a few years, products cover the mainstream high-end price range of 200,000 to 700,000 yuan, cumulative sales break 250,000 units, successfully establishing a foothold in the high-end market full of top players.

In the second half of this year, two major new cars will debut — Avatr 07L and the new large six-seater flagship SUV. Especially the latter, which will become the industry's first model equipped with CATL's condensed state battery, directly raising the ceiling of the brand's product power by a level.

According to the long-term plan, by 2030, Avatr will complete the layout of 17 products, comprehensively covering mainstream sub-segments such as SUVs, sedans, and MPVs. Whether it is family users, business professionals, or young groups pursuing individuality, they can find suitable models. This full-category layout is exactly the key confidence for high-end brands to stabilize the market.

In addition to deep cultivation domestically, Avatr's globalization pace is also steady and fast.

In the past two years, going global with domestic smart electric vehicles has become a trend, but there are few brands that can establish a foothold in overseas high-end markets and build a reputation. After Avatr launched its global expansion plan in 2024, it has entered more than 40 countries and regions, and the achievements are also very bright:

Stably ranking first in high-end electric vehicle sales in Thailand, capturing 10% of the high-end electric vehicle market share in the UAE.

This year, Avatr will also officially enter the European market, launching an attack on the core hinterland of global high-end electric vehicles. Looking towards 2030, Avatr plans to cover more than 110 countries and regions, with overseas sales accounting for 40%.

Avatr's ability to surge forward has relied heavily on Changan Automobile's full support behind the scenes.

As the core carrier for Changan Automobile to impact high-endization, Avatr has shouldered the important mission of building a global high-end brand since its inception. In April this year, Changan Automobile promoted strategic synergy between Avatr and Deepal Automobile, clarifying the principle of 'independent front-end, collaborative mid-and-back-end, independent brand operation'. This move not only further elevated Avatr's strategic position but also ensured that the group's global resources continued to tilt towards it.

Avatr retains the independence of the three major systems of brand operation, channel operation, and user service. The high-end positioning has become clearer. Group empowerment combined with its own efforts, development momentum continues to be maximized.

And Avatr's most core and hard-to-replicate advantage belongs to the deep binding of the 'three giants' of Changan, Huawei, and CATL. This golden combination builds a technical barrier that is hard to shake in the industry.

Relying on Changan Automobile's century-old car-making heritage, Avatr firmly holds the autonomy of core technologies, independently developing the Kunlun Smart Extended Range and Taihang Intelligent Control Chassis two major core technologies. Especially the iterative Taihang Intelligent Control Chassis 2.0, equipped with industry-leading distributed electric drive technology, balancing extreme safety and top-tier handling, bringing users a cross-level travel experience.

As a 'technical shareholder' of Huawei and CATL, Avatr holds the priority right to use technology and participates in the definition of new technologies from the source. It is worth mentioning that Avatr is now the largest external shareholder of Huawei Inwot, holding 10%. It can not only obtain stable investment income but also share resources with more than 20 cooperating car enterprises such as Seres and Audi.

CATL, as the second largest shareholder, prioritizes supplying Avatr with cutting-edge battery technologies such as Shenxing, Xiaoyao, and Condensed State, ensuring the model battery performance always leads the industry. The combined strength of the three strong forces allows Avatr to always be at the forefront on the technical level

Standing at the forefront of the industry, product power naturally remains firmly in the first tier.

As a core strategic asset created by Changan Automobile, Avatr will always adhere to the development positioning of 'Original, Intelligent, New Luxury', moving forward steadily along the path of sustainable growth.

Clear strategies, hard-core technologies, perfect products, and steady globalization allow Avatr to consolidate core competitiveness step by step.

It can be foreseen that in the new cycle of high-quality development, Avatr will surely ride the wind and break the waves. Not only becoming a benchmark for China's high-end electric vehicles, but also shining the brilliance of Chinese intelligent manufacturing on the global stage, allowing the world to see the hard power of China's high-end smart electric vehicles!