Sales were still sluggish in June, and Avita lost its Huawei halo. Does the future look bad？

Nowadays, the new energy vehicle market still maintains a high-speed development momentum. According to the latest data from the Passenger Association, the sales volume of new energy narrow passenger cars reached 665,000 in June, an increase of 25.2% year-on-year and a month-on-month increase of 14.7%. The cumulative sales volume in the first 6 months 3.086 million, an increase of 37.3% year-on-year, which can be said to be the biggest attraction in the current domestic auto market.

However, even under the trend of the overall substantial growth of the new energy market, the Avita brand, which is blessed by Huawei’s "halo", still underperformed.

According to the latest data in June, the sales of Avita 11 were only 1753 units, and the performance was still sluggish. Since it was launched in August last year, the sales of Avita in the past 10 months have only been about 10,000. This data is only equivalent to the monthly performance of the current Li Auto single model. Compared with the AITO brand that also has Huawei’s "halo", Avita’s performance is also very different. It can be said that the current market performance of Avita is quite unsatisfactory.

In fact, in the first half of this year, Avita also adjusted for the only existing model, adding an Avita 11 single-motor version model. Compared with the previous dual-motor version of the starting price of 349,900 yuan, the price of the Avita 11 single-motor version entry-level model has been reduced by 30,000 yuan, and the cost performance has been further improved. But the final feedback to sales, there is still not much improvement.

According to Tan Benhong, chairperson and CEO of Avita Technology, put forward at the annual meeting at the beginning of this year, "Avita Technology will challenge the order of 100,000 vehicles in 2023", there is still a considerable gap. And in today’s average monthly sales of less than 2,000 vehicles, even if Avita completes a relatively high order volume, it is just whitewashing its poor market performance.

In addition, it is worth noting that in the case of sales falling short of expectations, Avita is also facing a small funding gap. In June this year, Chongqing Property Rights Trading Network released the "Avita Technology Co., Ltd. Capital Increase Project" announcement, showing that Avita Technology plans to implement corporate capital increase, and the total amount of capital to be raised is not more than 4 billion yuan. This is also the third financing implemented by Avita since November 2021. In addition, Zhu Huarong, chairperson of Changan Automobile, also revealed that Avita will follow up with listing financing plans.

It can be seen that in the absence of hematopoietic ability, Avita will need a lot of financial support in terms of new car planning and channel construction in the future. And through continuous financing, it can only solve its urgent needs. The current key is still how Avita can break the embarrassing market situation by effectively enhancing the competitiveness of its products.

Although Avita 11 is a collection of Changan Automobile, Huawei, and Ningde Era, it started at a high point. However, from the perspective of the technical strength of the product, there is no obvious breakthrough in the fields of intelligence level, battery life or active driving. In addition, in terms of brand power, Avita, as a latecomer, has a certain gap compared to NIO, Ideal, and Xiaopeng. It is also worth noting that, as the "boss" of the current new energy market, BYD has also gradually made an upward layout, which will further increase the pressure on Avita, which is gradually being marginalized.

It is reported that the new car is positioned as a luxury medium and large new energy car, also based on the CHN intelligent electric vehicle technology platform, equipped with CATL ternary lithium battery pack, and equipped with HarmonyOS Huawei Hongmeng car system and Huawei high-end intelligent driving system ADS 2.0. The new car is expected to be launched in the third quarter of this year and is expected to be launched within the year. But whether this new car can lead Avita out of the predicament is still a big question mark.

Write at the end

Judging from the overall sales performance in the first half of this year, Avita 11 did not meet expectations. And in the case of further intensified competition in the new energy vehicle market, it has been very difficult for Avita to reverse the decline. Although financing can solve its urgent needs, the long-term sales downturn will inevitably make it lose its ability to "make blood". And the next Avita 12 new car is also crucial. We will continue to pay attention to how it performs in the end.

(This article is originally produced by Wenwu Lane New Media Studio. Please indicate the source when reprinting: Wenwu Lane. The author of this article: He Feng)