Chinese luxury electric vehicle brand Avatr Technology has successfully completed an RMB 3 billion ($410 million) Series B financing round, Shanghaiist reports citing Avatr’s announcement.
Avatr aims to use the funds to boost its electrification initiatives to improve its electric vehicle production and sales in its home market.
Investments
CnEVPost indicated that the latest funding round ultimately increased post-investment in Avatr to approximately RMB 20 billion.
Apart from the parent company Changan,
Avatr’s major investors include South Industry Assets Management and BOCOM International Equity Investment Management.
The formation of the Avatr brand
In hindsight, Chinese brands Changan and NIO established a joint electric vehicle brand called “Changan NIO” on July 10, 2018.
However, NIO’s share in the JV declined to just under 1%. Therefore, Changan reorganized the brand and gave it the brand name Avatr.
Changan officially advanced as Avatr’s parent company in August 2021. Meanwhile, tech giants Huawei and CATL supply the brand with smart car and battery solutions.
The report indicated that Changan retained a substantial stake of 40.99% in Avatr following the recent funding round. Meanwhile, power battery giant CATL’s stake dropped to 14.10% from 17.10%. Nonetheless, it is still the brand’s second-biggest shareholder.
As mentioned, NIO’s stake in the company dropped from 0.81% to 0.67% after the latest funding round.
Avatr’s first EV model
After a year, Avatr finally released its inaugural electric vehicle offering, Avatr 11, on August 9, 2022.
The company started customer deliveries as early as December last year. In addition, it has also developed a limited-edition EV, the Avatr 011. Its deliveries have just started in February 2023.
However, the brand’s EV sales in the country have been extremely low. The China Passenger Car Association’s (CPCA) data revealed that it only sold 1,200 units as of July. Meanwhile, its Q2 2023 sales were only under 2,000 EVs.
See Also:
- Changan to erect $250M NEV factory in Thailand with 100K-unit initial output per year
- Changan to develop a new EV production plant in Thailand
- Huawei-backed EV brand Avatr to launch Avatr 12 electric sedan
- Huawei exec previews new electric coupe from its JV with a Chinese automaker
- Huawei signs deal with CATL as the tech giant ramps up its bet on electric vehicles
This new source of funding will undoubtedly aid Avatr’s effort to catch up in China’s electric vehicle industry. It can support improving its current EV lineup and smart technologies.
You can access Changan’s stock exchange announcement here.
