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Avita gave up the direct-sales model? official rumors

2024-10-31 Update From: AutoBeta NAV: AutoBeta > News >

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AutoBeta(AutoBeta.net)07/18 Report--

On July 17, according to the Beijing News Shell Finance report, in response to the online rumor that "Avita will give up the direct camp model", Avita officials said that this is false information, and Avita has not given up the direct operation mode. Avita is promoting the two-line layout of direct stores and dealers to give full play to their respective advantages. In addition, the relevant person in charge of Avita told the relevant media: "Avita started channel adjustment in April, and all the switches were completed in June. At present, it is a direct + other camp dealer joining mode."

It is understood that there is news in the market that Avita has comprehensively transformed the dealer channel model, that is, from the direct operation mode to the dealer mode, in order to improve the response speed of users and the efficiency of stores. During the conversion period, employees can choose whether to stay or not, and Avita officials will give corresponding compensation measures. At that time, it was reported that Avita had basically turned direct stores into dealer stores, leaving only a small number of direct stores in the north, Shanghai and Guangzhou, including five in Shanghai. The change of the model does not affect sales, and the model prices and preferential measures of the transformed dealer stores and direct stores are consistent.

Avita Technology is a high-end new energy brand of Changan Automobile, which is jointly built by Changan Automobile, Ningde Times and Huawei. The currently launched Avita 11 and Avita 12 models are based on the intelligent electric vehicle network platform (CHN) jointly developed by Changan, Huawei and Ningde era. According to the data, Avita's cumulative annual sales in 2023 was 27600 vehicles, achieving only 27.6% of the 100000 sales target. In terms of financial results, according to the Changan Automobile Annual report, Avita's revenue in 2023 was 5.643 billion yuan, which was in a state of loss, and the net loss increased from 2.015 billion in 2022 to 3.693 billion in 2023, an increase of 83.22% over the same period last year. From 2020 to 2021, Avita had a net loss of 150 million and 209 million, respectively, and had accumulated a loss of about 8 billion yuan in four years.

After entering 2024, Avita did not have many surprises. The cumulative retail sales in the first half of the year were 18482 vehicles. According to Avita's expected delivery target of 84000 vehicles, only 22% of them were completed in the first half, of which Avita 12 sold 12817 vehicles. Avita 11 is 5665 vehicles, admittedly, Avita is also facing greater sales pressure.

At present, Avita Technology is still in the early stages of career development, and in recent months, Avita Technology has also made many challenges to personnel. Including Zhu Huarong, party committee secretary and chairman of Changan Automobile, will also serve as chairman of Avita; Wang Xiaofei, vice president of Changan Automobile, will assist Zhu Huarong in Avita enterprise operation, major project promotion, key business operation, etc. Chen Zhuosheng, former senior executive vice president of Avita, will be fully responsible for the operation and management of Avita. Tan Benhong no longer served as chairman and CEO of Avita and became deputy secretary of the party committee of Changan Automobile.

In terms of products, in addition to the current Avita 11 and Avita 12, Avita will launch Avita 07 in the third quarter, which is the third production car owned by Avita Technology and locates a medium-sized SUV. Compared with Avita 11 and Avita 12, the new car will have two power forms, extended range and pure electric version, and are expected to be priced in the range of 25 to 350000 yuan. In addition, Avita Technology will launch Avita 15 this year, when Avita will have four products on sale.

As a new energy brand incubated within Changan Automobile, Avita relies on Changan Automobile, Huawei and Ningde era, but still faces greater sales pressure. How Avita will develop in the future is worthy of attention.

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