Avatr targets global growth after hitting sales milestone

Changan's luxury marque Avatr announced its cumulative sales has exceeded 150,000 units, with an average transaction price of over 270,000 yuan ($37,584), strengthening its position in China's premium new energy vehicle market.

The milestone was revealed on Saturday at the 27th Chongqing International Auto Show where Avatr also outlined its ambitions for global growth and innovation under its newly independent central State-owned enterprise structure.

By 2030, it plans to launch 17 new models, including a six-seat luxury flagship expected to compete in the 1-million-yuan segment.

The company aims to sell 800,000 units globally per year by decade's end and reach 1.5 million annual sales by 2035.

Two days prior to the auto show, Changan Automobile, now part of China South Industries Group Corp, announced that it will be separated from the group and restructured into an independent central SOE.

Following the announcement, Changan's stock price surged, reflecting strong market confidence in this strategic shift.

From a capital perspective, the forthcoming separation grants Avatr, as Changan's high-end brand, greater autonomy and more direct State support, benefiting its financial health and market value.

Avatr is backed by a unique tripartite partnership: Changan holds a 40.99 percent stake, CATL 14.1 percent, and Huawei acts as a strategic partner.

This model enables rapid innovation and competitive advantage in China's NEV sector, with Huawei providing advanced intelligent driving and cockpit technologies.

Analysts said Avatr's integration of State resources through its unique partnership model allows it to innovate rapidly and maintain competitive advantages in technology and design, setting a benchmark for other emerging NEV brands in China.

Changan Chairman Zhu Huarong has set a clear target for Avatr to break even by 2026, aiming to boost operational efficiency and product competitiveness.

This focus is expected to increase market share and profitability, delivering solid returns for investors and promoting synergy across the NEV industry chain.

Avatr President Chen Zhuo said the brand has entered a “new historical phase” after reaching the sales milestone.

“We will continue to build an independent team, brand, and operating capability through a market-driven path—growing through competition,” he said.

“At this new starting point, Avatr remains committed to global original design and leading Chinese technology to create a world-class new luxury brand that delivers a forward-looking mobility experience to users worldwide,” said Chen.

Since its first delivery in late 2022, Avatr has released four models in three years, covering both battery-electric and range-extender platforms.

All models are equipped with CATL batteries and feature advanced elements such as dual zero-gravity front seats, nano water-ion air conditioning, and panoramic starlight roofs.

The cars are among the first to adopt electronic side mirrors and intelligent chassis systems designed for Chinese road conditions.

The flagship Avatr 11 won China's prestigious Gold Award for Design at the 25th China Patent Awards, endorsed by the UN's World Intellectual Property Organization.

Alongside rapid product development, Avatr emphasizes continuous software upgrades and user engagement.

The brand has issued 36 OTA updates and offers retrofitted suspension kits for early buyers.

Its sales and service network spans over 700 locations across 212 Chinese cities, with plans to expand to more than 160 global outlets in over 50 countries by year-end.