Avatr, Changan’s Electric Vehicle Subsidiary, Secures $410 Million in Fresh Funding

Avatr Technology, the premium electric vehicle (EV) subsidiary under Changan Automobile, has successfully concluded a significant Series B funding round, injecting fresh capital into its future expansion plans. The company’s latest funding round, amounting to RMB 3 billion ($410 million), has propelled its post-investment valuation to an impressive nearly RMB 20 billion.

In a recent announcement on Weibo, Avatr Technology expressed its commitment to enhancing customer experiences and aspiring to establish itself as a globally recognized brand specializing in luxury smart EVs. The funding infusion marks a crucial step towards realizing this vision.

Among the new investors joining the ranks are BOCOM International Equity Investment Management, in addition to the continued support from longstanding shareholders such as Changan and South Industry Assets Management.

Originally established as Changan Nio through a collaboration between Changan and Nio (NYSE: NIO) on July 10, 2018, Avatr Technology has evolved independently. While Nio’s ownership interest has diminished to below 1 percent, the company has emerged as a distinctive entity in the EV landscape.

Undergoing a rebranding effort in August 2021, Avatr Technology transitioned from Changan Nio to its current identity, affirming Changan’s leadership and enlisting Huawei and CATL to steer smart car and battery solutions.

After overcoming developmental challenges, Avatr Technology achieved a significant milestone with the official launch of its inaugural model, the Avatr 11 SUV, on August 9, 2022. Deliveries commenced at the close of the preceding year, with the introduction of the limited-edition Avatr 011 following suit in February of the subsequent year.

However, Avatr Technology has faced sales performance fluctuations, with figures reported by the China Passenger Car Association (CPCA) indicating sales of 1,200 units in July and a consistent trend of below 2,000 units for the past three months.

While Avatr Technology’s Weibo post refrained from disclosing extensive details regarding the recent funding, a complementary stock exchange statement from Changan, released the previous night, furnished additional insights.

Maintaining its stake unchanged at 40.99 percent post the funding round, Changan continues to hold a dominant position. CATL, a key stakeholder, experienced a marginal decrease from 17.10 percent to 14.10 percent, retaining its position as the second-largest shareholder.

Notably, Nio’s ownership stake in Avatr Technology underwent further dilution, decreasing from 0.81 percent to 0.67 percent as a result of the recent developments.