BUSINESS

Changan-Backed Avatr Revives Hong Kong IPO Bid Amid Sales Slump

Published: Jul. 3, 2026 1:44 a.m. GMT+8

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Avatr’s lineup of new-energy vehicles on display at the 2026 Guangdong-Hong Kong-Macao Greater Bay Area Auto Show on May 30, 2026. Photo: VCG

Premium electric-vehicle maker Avatr Technology Co. Ltd. has revived its push for a Hong Kong initial public offering after its previous application lapsed.

The renewed listing attempt comes as parent company Chongqing Changan Automobile Co. Ltd. faces mounting pressure in China’s crowded EV market. The Shenzhen-listed automaker has recently moved to restructure its new-energy vehicle operations and deepen cooperation with Huawei Technologies Co. Ltd. in an effort to reverse a sharp decline in Avatr’s deliveries.

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Explore the story in 30 seconds

Avatr Technology revived Hong Kong IPO after previous application lapsed; parent Changan Automobile holds 41.57% stake.
Avatr posted 2025 net loss of 3.5B yuan on 25.6B revenue; sales fell 54% Jan–May 2026 to 20,000 vehicles.
Changan plans to integrate Avatr with Deepal to cut costs 20–30%; Avatr deepens cooperation with Huawei.

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Who’s Who

Avatr Technology Co. Ltd.: Avatr Technology Co. Ltd., a premium EV maker founded in 2018, revived its Hong Kong IPO after a lapse. Backed by Changan, CATL, and Huawei, it uses an asset-light model. Despite this, it faces losses and delivery declines, with sales falling 54% in early 2026. It plans integration with Deepal to cut costs.

Chongqing Changan Automobile Co. Ltd.: Chongqing Changan Automobile Co. Ltd. is the Shenzhen-listed parent of Avatr Technology, holding a 41.57% stake. It faces intense competition in China’s EV market and has restructured its NEV operations, deepening ties with Huawei. Chairman Zhu Huarong targets global sales of 4-5 million vehicles by 2030, integrating Avatr with Deepal for efficiency.

Huawei Technologies Co. Ltd.: Huawei Technologies Co. Ltd. provides Avatr with intelligent-driving and smart-cabin systems. Avatr also holds a stake in Huawei’s smart-auto solutions unit. Huawei works with nine auto brands under its full-stack cooperation model, and has established a joint product-development model with Avatr for future models.

Contemporary Amperex Technology Co. Ltd. (CATL): Contemporary Amperex Technology Co. Ltd. (CATL), a Shenzhen-listed battery giant, held a 9.38% stake in Avatr Technology as of June 2025. It supplies batteries for Avatr's electric vehicles under an asset-light model, partnering with Changan and Huawei.

Nio Inc.: Nio Inc. co-founded Avatr Technology in 2018 as a joint venture with Changan Automobile. Nio's stake in Avatr was gradually diluted starting in 2020, and Nio fully exited in 2025. In 2025, Nio ranked ahead of Avatr in China's premium EV segment deliveries.

Shenzhen Yinwang Intelligent Technology Co. Ltd.: Shenzhen Yinwang Intelligent Technology Co., Ltd. is Huawei's smart-auto solutions unit, according to the article. Avatr Technology holds a stake in this company, which provides intelligent-driving and smart-cabin systems for Avatr's vehicles.

Tesla Inc.: Based on the article, Tesla Inc. is a competitor in China's premium new-energy vehicle market, ranking ahead of Avatr Technology. The article notes that Avatr placed eighth, behind Tesla and other rivals, in the premium EV segment. No further details about Tesla are provided.

Li Auto Inc.: Li Auto Inc. is a Chinese premium new-energy vehicle maker and a competitor in the EV market. In 2025, it ranked ahead of Avatr Technology, which placed eighth in China’s premium NEV segment, indicating Li Auto's stronger market position among rivals like Tesla, Aito, Zeekr, Nio, and Voyah.

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What Happened When

2018：: Founded as a joint venture between Changan Automobile and Nio Inc.

2020：: Nio’s stake gradually began to be diluted.

2025：: Nio fully exited Avatr.

2025：: Delivered 123,000 vehicles. Posted a net loss of 3.5 billion yuan ($515 million) on revenue of 25.6 billion yuan, with a gross margin of 9.4%. Had 9.7 billion yuan in cash and cash equivalents at end of the year.