Q1 Sales Plummet, Prospectus Expired, Three Chairmen in Four Years: What's Wrong with Avatr?

For Avatr in 2026, the days aren't going well. The Hong Kong Stock Exchange IPO prospectus automatically expired after just 6 months, which already raised many doubts. The reality of poor Q1 sales and a sharp year-on-year drop in April alone further led many to believe whether the brand backed by the three giants Changan, Huawei, and CATL is already "done". So, can this high-end brand once considered limitless in potential still "turn the tide"?

Sales plummeted cliff-style, where is the problem?

Avatr, considered to be thriving next in 2025, has been "falling" since entering 2026. According to China Passenger Car Association data, Avatr cumulative deliveries in Q1 2026 were 11,392 units, a sharp 53.5% year-on-year drop, nearly double the industry average, monthly sales less than 40% of last year's peak. Compared with brands like Li Auto, Leapmotor, Xiaomi in the same period, the gap is even more visible.

They say sitting under a big tree is cool, and as a high-end brand backed by the three giants Changan, Huawei, CATL, why did Avatr fall behind so fast? In fact, looking at Avatr's current performance, the problem is not hard to find. Avatr initially had endorsement from the "Big Three", with three selling points "Changan strength + Huawei Smart Driving + CATL Battery" presented, it was still able to attract a large batch of consumers to buy.

But now, Huawei's technology has almost become the "public resource" of the whole industry, CATL's batteries are not unique to Avatr, Changan has other brands to balance, the original "Iron Triangle" exclusive halo gradually faded, Avatr naturally couldn't easily get consumer support.

Of course, Avatr could win over customers with its perfect product matrix and excellent service. Unfortunately, Avatr seems to not have this ability for now. On one hand, Avatr is stuck in a very competitive price segment, Tesla, BYD, Xiaomi, Zeekr and other brands each have their own territory, Avatr without clear tags wants to break in is really too hard.

And the "rapid iteration backstab" at the product end left users heartbroken. The "backstabbing event" happened last year, many still have an impression. Soon after Avatr 12 four-laser version launched, the brand launched new model equipped with 896-line dual-optical path LiDAR, AD performance greatly upgraded, old owners' vehicles instantly devalued, second-hand car depreciation rate up to 35% to 40%, triggering large-scale user complaints and reputation collapse. Plus 2026 Avatr new products haven't come for a long time, product rhythm "interrupted", consumer interest weak, Q1 sales hard to sustain.

Three chairmen changed in four years, how to fight this battle?

Sales decline is just surface problem, management continuous turbulence might be the "mine" buried long ago. Don't know if everyone noticed, from 2021 to now, Avatr has changed three chairmen. First Tan Benhong, then end of 2023 Zhu Huarong took over personally, to Sept 2025, "Post-80s" Wang Hui took over, equals three leaders change in four years.

During Tan Benhong period, Avatr took pure electric high-end route, result 2023 whole year only sold 27,600 units. Sales not very good, Avatr didn't give too many chances, directly changed Zhu Huarong to take over. Zhu Huarong's thinking was not same as previous, after taking office immediately turned, all series on extended range, and price dropped to 200,000 level, sales indeed pulled up, but also carried "downgrade" questioning. Arrived at Wang Hui, started talking "Anti-Involution", "Value Leap", promoting "Strategy 2.0".

Perhaps changing leaders' original intention was for brand to get better, but different senior management management concepts, decisions etc. will differ, so frequently changing senior management, brand's impact is also obvious. And the difference here also reflects Avatr's "Triangle Governance" problem, everyone knows Avatr backed by three big shots, but seems few people thought, three "big shots" with different interest demands, will it affect Avatr's normal "course" due to focus difference.

Behind each chairman stands different shareholder logic, Avatr fluctuated between "high and high" above 300,000, then pushed 219,900 Avatr 07 to probe market, after a while new model might price raise again. Whether this repeated wavering was influenced by different decision makers, we do not know. But a brand who themselves are wavering, to "fight" in high-end market, seems cannot make people produce too much confidence.

Making money overseas, but may not necessarily "save life"

Although domestic is a mess, but Avatr's overseas performance is quite good. Since Sep 2024 launch globalization, Avatr has entered more than 40 countries and regions, and in several markets has achieved stable profit. In Thailand, Avatr 11 starting price approx 447,000 RMB, long time dominating high-end pure electric sales rank first; In UAE, occupied local high-end EV 10% share; In Singapore, Avatr 11 sold to 1.56 million RMB, sales still rising. From its overseas results view, Avatr's tactic counts as successful.

But the problem is, overseas this amount, can turn Avatr next situation? Currently look, may not that optimistic. Avatr 2026 overseas target 55,000 units, hope to 2030 overseas ratio 40%, this idea sounds good, but Avatr truly walk out of loss mud, monthly sales need pull to 20,000 units above to have scale effect. Overseas this volume, put in bigger plate look, weight far from enough.

Look again at blood-making ability, Avatr 2024 loss 4.018 billion yuan, 2025 first half loss 1.585 billion yuan, 3.5 years cumulative loss over 11.3 billion yuan. Even if overseas year earn hundreds of millions, facing monthly loss several hundreds of millions domestic business, overseas that profit, might not even fill domestic loss fragment.

This is not saying Avatr overseas has no value, high-end positioning, brand premium, differentiation route, these directions are correct. But for a 2026 Q1 sales halved, IPO suspended, billion loss pressure brand, overseas current only bonus item, hard to use as lifeline straw. In other words, true turnaround battle, still need to fight in domestic. And this year passed good few months, Avatr next want "turnaround", probably also not that simple.

Conclusion

Avatr's foundation not thin, three industry giants endorsement, overseas market also developing, tech reserve not missing, foundation still very good. Only just, market competition also very fierce, give Avatr window period getting narrower. Back to start that question: Can Avatr turn around? This question's answer now cannot be certain. But can be foreseen is, Q1 sales halved, billion loss set there, IPO suspended, market competition day by day fierce, if its H2 cannot fight new hit, these "variables" will all press brand breathless.