- Changan's planned 10% share transfer in Avatr ahead of a Hong Kong IPO signals a strategic reweighting to monetize stake while retaining control and supporting premium dealer and overseas expansion efforts.
- The listed minimum ask is RMB 3.1828 billion (about $477 million), implying an Avatr valuation of roughly RMB 31.828 billion (about $4.77 billion); Changan would fall to a 30.994% stake if completed.
- Avatr targets premium EV buyers against rivals like CATL-backed peers, but execution risks include ongoing losses (RMB 13.2 billion 2022–25), shrinking cash (RMB 6.249 billion at April 2026), falling deliveries, and IPO timing sensitivity.
Changan Automobile listed a 10% stake in Avatr Technology for transfer on November 12, with a minimum asking price of RMB 3.1828 billion ($477 million), according to the Shanghai United Assets and Equity Exchange.
Based on a straightforward proportional calculation using the asking price, Avatr’s implied total valuation is approximately RMB 31.828 billion ($4.77 billion).
This is broadly in line with its post-money valuation following its Series C financing at the end of 2024.
If the transaction is completed at the proposed terms, Changan Automobile’s stake will fall from 40.994% to 30.994%, leaving it as Avatr’s largest shareholder.
The new investor would directly acquire a 10% stake, making it the second-largest shareholder, ahead of CATL, which currently holds 9.1742%.
Changan Automobile told media outlets that the prospective investor would focus on supporting Avatr’s premium-brand dealership network and overseas market expansion.
Even after the shareholding adjustment, Changan will continue to provide Avatr with end-to-end support in core areas including technology development, vehicle manufacturing and supply chain management.
The proposed stake transfer comes at a critical stage in Avatr’s planned Hong Kong IPO. The company updated its listing documents and submitted a second application on June 30, 2026.
A major equity transfer during the IPO process could influence market expectations for Avatr’s listing valuation, particularly depending on the identity of the new investor and the price at which it enters.
Operationally, Avatr continues to face challenges including losses, declining cash reserves and pressure on vehicle sales.
Its prospectus shows that the company accumulated losses of more than RMB 13.2 billion ($1.98 billion) between 2022 and 2025. It also expects to remain loss-making in 2026.
Cash on hand has fallen steadily, from RMB 19.323 billion ($2.90 billion) at the end of 2024 to RMB 9.687 billion ($1.45 billion) at the end of 2025, before declining further to RMB 6.249 billion ($937 million) at the end of April 2026.
Sales have also remained under pressure. Avatr delivered 7,056 vehicles in October 2026, down 47.75% year on year and 13.77% month on month. Domestic retail sales were below 3,000 units for the month.
Meanwhile, Changan Automobile is also adjusting how its new energy vehicle brands coordinate their operations.
In September this year, the company reportedly established an AD (Avatr and Deepal) Collaborative Development Department to coordinate operations between the two brands.
Avatr also underwent a management reshuffle. Chen Zhuo was appointed chairman, while Yong Jun took over as president.
Former chairman Wang Hui was reassigned as executive vice president of Changan Automobile, where he is responsible for overseas manufacturing and knock-down (KD) operations, among other areas.
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