On August 20, Changan Automobile announced that Avita’s investment in Huawei had been formally signed.
On Aug.
19, Changan Automobile announced that Avita bought 10% of the shares held by Huawei in a deal worth 11.
5 billion yuan.
After the deal, Avita Technology held 10% of the shares and Huawei held 90% of the shares.
This also means that Avita has officially become the second largest shareholder of the attraction.
To deepen the cooperation with Huawei, which is another help of Changan Automobile to Avita.
Prior to this, as a high-end Changan automobile brand, Avita, because sales have not improved, Changan Automobile began to support Avita last year.
“as long as Avita needs it, Changan Automobile will give its full support, asking for money, giving people to others, and technology to technology.
” Zhu Huarong, chairman of Changan Automobile, said so.
However, the results have not been reversed, and so far, Avita is still the slowest growing new energy brand in Changan.
Avita has become a sales depression in Changan.
Changan Automobile New Energy Brand Matrix mainly includes three major brands: Qiyuan, Deep Blue and Avita.
With the help of these three brands, Changan automobile independent brand new energy sold a total of 344500 vehicles from January to July 2024, an increase of 59.
8% over the same period last year, ranking third among independent traditional car companies.
However, looking at these three brands, Deep Blue has the greatest contribution to the group’s new energy sales, followed by Changan Qiyuan, followed by Avita.
Specifically, Changan Qiyuan was officially released to the public in August last year.
At this stage, it focuses on the three major markets of plug-in, extended range and pure electricity, focusing on the price range of 80, 000-200000 yuan.
It can be said that the advent of Changan Qiyuan is to go for sales.
With comprehensive positioning and preferential prices, Changan Qiyuan’s recent monthly delivery volume has exceeded 10,000 in a row, with cumulative sales of 85400 vehicles from January to July.
Benefiting from the further expansion of the mixing market, Gaishi Automotive Research Institute predicts that the terminal sales of Changan Qiyuan will reach 105000 this year.
According to the plan, Changan Qiyuan plans to launch 10 global models in 2025 and plans to sell 1.
5 million by 2030.
Deep Blue was released in April 2022, its positioning is slightly higher than Qiyuan, focusing on Zengcheng, pure electricity market, the price is about 200000 yuan, the newly listed Deep Blue G318 price has exceeded 300000 yuan.
In terms of sales, Deep Blue is the best-selling brand among the new energy brands of Changan Automobile.
From January to July this year, cumulative sales exceeded 100000, reaching 100579.
In the second half of this year, Deep Blue S05 for compact SUV and Deep Blue L07 for medium-sized cars will also be on the market.
With the improvement of the brand matrix, it is expected to further promote brand sales.
Compared with the above two brands, Avita’s sales performance is somewhat unsatisfactory.
Avita was built by Changan Automobile in conjunction with Huawei and Ningde Times to position high-end new energy brands and was once known as “a child born with a golden spoon”.
Avita is not only the vanguard of Changan new energy strategy, but also shoulders the mission of brand promotion.
At the beginning of the establishment of Avita, Zhu Huarong, chairman of Changan Automobile, said in public, “the joint construction of a high-end smart car brand with Huawei and Ningde marks the ‘fast-forward key’ for Changan Automobile to open the brand.
In the announcement of the equity transfer agreement, Changan Automobile also said that Avita Technology is an important strategic partner of Huawei and Avita Technology, and this transaction will help Avita Technology to gain more capacity from Huawei and accelerate the upward strategy of Changan Automobile Brand.
In order to realize the dream of brand upward, Changan Automobile is doing its best to give money and technology to Avita.
However, despite the preference of Changan Automobile, Avita did not give the same return.
Cumulative sales in 2023 were only 27600 vehicles, far below its annual sales target of 100000 vehicles, and only 27.
6% of the target was achieved.
It rose from January to July this year, with cumulative sales of 32700 vehicles, but monthly sales are still hovering around 4000.
By comparison, the monthly sales of Geely’s polar krypton and BYD, which are in the same position, have exceeded 10,000.
Among the new power car companies, Weilai has broken through 20,000, and the ideal car has broken through 50,000, and the cumulative sales volume has also opened a large gap with the Avitara.
Oh, mend after the sheep have been lost? As Changan Automobile, which has gained a lot in the field of new energy, why did it just stumble on Avita? According to the analysis of Galaxy, Avita has only pure electric models, slow price adjustment and unobvious brand characteristics are the main reasons why its sales can not be accelerated all the time.
In the past two years, the rapid development of new energy is obvious to all, but the market is also divided.
the year-on-year growth rate of mixed and extended range models is obviously higher than that of pure electric models.
According to statistics from the ride association, retail sales of pure electric models and plug-in hybrid models were 482000 and 396000 respectively in July, up 14.
3% and 80.
4% respectively from a year earlier.
According to the analysis of Chenglian Branch, with the help of demand, the plug-in hybrid technology and extended range technology of Chinese car companies have made continuous breakthroughs and become an important contributor to the increment of new energy passenger vehicles.
This law is also applicable to the situation of new energy of Chang’an Automobile.
As mentioned in the above article, apart from the price differences between Avita and Changan Qiyuan and Deep Blue brands, another difference is that Changan Qiyuan and Deep Blue Power are rich in types.
Among them, Qiyuan has plug-in, extended range and pure electricity, including the mainstream power type of the market, while Deep Blue focuses on extended range and pure electricity, while Avita has only pure electricity at this stage.
It is this malpractice that has been discovered, and now Changan Automobile is trying to make up for it.
According to Avita’s plans for a new car for 2024, Avita will launch four additional power models this year.
As one of the new products, the Avita 07 with extended range power is expected to be officially launched in September this year.
This will also be Avita’s first extended-range model.
In terms of price, a wave of price cuts swept through at the beginning of this year, especially in the 200000 market.
In the new power, the ideal price is below 250000 yuan, and the starting price of Xiaomi SU7 is finally set at 215900 yuan.
As the second generation of Geely polar krypton and Dongfeng Lantu, the price of polar krypton 007 launched by polar krypton has come to less than 210000 yuan, while the starting price of Lantu is just over 220000 yuan.
Although Avita also followed the market to cut prices, but its efforts are slightly inadequate.
In March this year, Avita 12 ushered in a change, and in the case of improved configuration, the price also fell from more than 300000 yuan to 265800 yuan.
However, through the comparison of the above models, the price of the Avita model obviously exceeds that of the competitive model, which is bound to affect the overall sales of Avita.
It is worth mentioning thatAfter adding the extended range technology, Avita officials said that the price of the new car will go down further.
Photo source: Avita, in addition, Avita does not have much advantage over the two major signboards needed by pure electricity, namely, smart driving and replenishing energy.
On the smart ride, although Avita is backed by Huawei, Avita is not alone in carrying Huawei’s latest smart driving technology.
In terms of energy replenishment, Avita, which only distributes pure electricity at present, does not have a more perfect replenishment network like the new power, and Huawei’s overcharging alliance, which just joined in April this year, is only in its infancy.
It is never too late to mend.
The sales of a brand has not improved, and there are many problems hidden behind it, but fortunately, Changan Automobile is trying to make up for it.
Changan’s preference for Avita, “I have always had a judgment and belief that a world-class Chinese brand will be born within ten years, which is also my expectation for Avita.
” Chang’an has accumulated a hundred years of technical capability, together with the latest scientific research results, all unreservedly given to Avita.
” At the beginning of the brand listing, Zhu Huarong was not stingy in expressing his preference for Avita.
As a matter of fact, this is indeed the case.
Changan gives what Avita lacks.
“you want money to give money, people to give people, and technology to give technology.
” In August last year, Avita announced the completion of round B financing, raising 3 billion yuan, of which Changan Automobile increased its capital by 1.
23 billion yuan.
After three rounds of financing, Avita raised a total of nearly 8 billion yuan.
Tan Benhong, former chairman of Avita Technology, also disclosed earlier: “We have just completed 3 billion of the financing this year, and there is another round next year.
” In addition, Avita disclosed that Avita is considering a listing in order to solve the problem of financing sources and improve the entire corporate governance structure through a number of management requirements of the listing.
It is worth mentioning that according to 2023, Changan Automobile’s long-term equity investment totaled 2.
278 billion yuan, of which 1.
23 billion yuan was invested in Avita alone, accounting for more than half of the total.
In terms of personnel, in December last year, Avita announced that Zhu Huarong, party committee secretary and chairman of Changan Automobile, would serve as chairman of Avita Technology.
Also sitting with Zhu Huarong was Wang Xiaofei, vice president of Changan Automobile.
According to the personnel appointment, Wang Xiaofei will assist the chairman of Avita Technology in the company’s business operation, major project promotion, and key business operations.
By two Changan automobile heavyweights, there is no doubt that Avita’s internal position will rise in a straight line, and the resources of Changan Automobile headquarters will be more inclined to Avita.
In terms of technology, Changan Automobile has adopted a cooperative research model with Ningde era and Huawei to create core components that belong exclusively to Avita, including platform, smart car, battery and so on.
With the completion of the agreement signed by Avita to invest in Huawei, the cooperation between Avita and Huawei is bound to go deeper, whether it is technical empowerment or Huawei’s brand effect, or will help Avita to the next level.
Photo source: Changan Automobile, in addition to external support, the interior of Avita is also undergoing great changes.
In terms of products, Avita will make up for the problem of imperfect models, and it plans to launch four models in 2025.
In terms of channels, at present, Avita’s channel is in a period of transformation from proprietary to agent.
Avita plans to expand 120 stores this year, and the number of stores is expected to reach about 470Mel 500 by the end of the year.
In order to achieve the performance target, Avita has made a reform in the distribution of compensation, and since the beginning of the year, the income of all management and core teams of Avita has been linked to sales, thus forcing sales performance.
Conclusion: it is not difficult to see that although there is a strong background as a support, if you can not quickly respond to market changes and comply with the trend of the times, you can not escape the fate of decline in the end.
Avita is this distinct example, however, Changan Automobile has been aware of this problem, and after checking and filling the gap, Avita still has a chance to pick up.
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