Key Points
- Avatr Technology is an electric vehicle (EV) brand backed by Changan Automobile, CATL, and Huawei.
- The company plans to unveil its first sedan, the Avatr 12, this quarter and will start deliveries within the year. The Avatr 12 will be a mid-to-large-size sedan that’s expected to compete with Nio’s (NYSE: NIO) ET7 sedan.
- The two new models, internally codenamed E15 and E16, will also go on sale in 2024.
- The sales channel will be a mix of direct and dealer stores, with a target of 350 sales touchpoints by the end of the year.
- Avatr’s sales performance has been weak, with 1,753 units sold in June and has been below 2,000 units for the past three months.
Details
Avatr Technology, an electric vehicle (EV) brand backed by Changan Automobile, CATL, and Huawei, has announced its plans for the near future. The company aims to unveil its first sedan, the Avatr 12, in the current quarter and begin deliveries within the year. This move comes as the company accelerates its original plan of releasing four models in four years.
Two versions
The Avatr 12 will be available in two versions, both of which are purely electric. The single-motor version is equipped with a motor with a peak power of 230 kW, while the dual-motor version has dual motors with maximum powers of 195 kW and 230 kW, respectively. Notably, the motor suppliers for these models are Huawei, and the battery packs come from CATL. The Avatr 12 is a mid-to-large-size sedan and is expected to compete with Nio’s ET7 sedan in the market.
The upcoming models internally codenamed E15 and E16, are also set to go on sale in 2024. The company believes that the year 2024 will be crucial for its growth and aims to become a premium brand by then.
Sales efforts
To support its sales efforts, Avatr plans to establish a sales channel comprising a mix of direct and dealer stores. The company aims to have 350 sales touchpoints by the end of the year, with a 50/50 split between direct and dealer stores.
The company Avatr was originally founded as Changan Nio by Changan and Nio back in 2018. However, Nio has now largely exited the company. After facing challenges during its development, Avatr successfully launched its first model, the Avatr 11 SUV, on August 9, 2022, and deliveries began at the end of the same year. The company also has a limited-edition model, the Avatr 011, which started deliveries in February of the following year.
Units sold
While Avatr’s sales performance has been weak in recent months, with 1,753 units sold in June and below 2,000 units for the past three months, the company’s expansion plans and upcoming models signal its commitment to growing in the EV market.
Avatr Technology, an electric vehicle (EV) brand backed by Changan Automobile, CATL, and Huawei, plans to unveil its first sedan, the Avatr 12, in the current quarter and aims to start deliveries within the year.
Pros of Avatr Technology’s Plans:
- Diversified Product Line: Avatr plans to release multiple models, including sedans and SUVs, providing customers with a variety of options to choose from in the EV market.
- Strong Backing: Avatr is supported by prominent companies such as Changan Automobile, CATL, and Huawei, which can provide financial resources, technological expertise, and industry influence.
- Advanced Technology: The partnership with Huawei and CATL indicates that Avatr’s vehicles are likely to incorporate cutting-edge technology in their motors and battery packs, potentially leading to better performance and longer driving ranges.
- Premium Brand Aspiration: The company’s aim to become a premium brand suggests a commitment to delivering high-quality and luxurious electric vehicles, attracting customers seeking upscale options in the EV market. Expanding Sales Network: Avatr plans to establish a substantial sales network with 350 touchpoints, including direct and dealer stores, making it easier for customers to access their vehicles.
Cons of Avatr Technology’s Plans:
- Challenging Competition: The EV market is highly competitive, with established players like Nio, Tesla, and other well-known brands already present. Avatr may face difficulties in gaining market share and attracting customers away from these established competitors.
- Weak Sales Performance: Avatr’s current sales performance, with consistently low monthly unit sales, indicates that the company may struggle to gain traction in the market and achieve significant sales volumes.
- Market Perception: Despite the backing of reputable companies, Avatr may face challenges in building a strong brand image and reputation, especially if its initial models receive mixed reviews or face technical issues.
- Uncertain Consumer Demand: The success of Avatr’s future models will largely depend on consumer demand for electric vehicles in the regions where they plan to sell. Market conditions, government policies, and customer preferences can significantly impact sales.
- Reliability Concerns: Since Avatr is a relatively new player in the EV industry, potential customers may have concerns about the reliability and durability of their vehicles compared to more established brands with a proven track record.
Conclusion
Avatr Technology’s plans for expanding its product lineup and sales touchpoints demonstrate its efforts to establish a strong presence in the electric vehicle market in China. The company’s partnership with major players like Changan, CATL, and Huawei indicates significant backing for its future endeavours. However, its sales performance will be crucial for achieving its growth objectives.
