Avatr Files for Hong Kong IPO, 2025 Deliveries Nearly Double to 123,000 Units
Claire Weston
Avatr, the premium EV brand backed by Changan, CATL and Huawei, filed its Hong Kong listing application on June 30, reporting 123,000 deliveries and RMB 25.6 billion in revenue for 2025 — a sub-four-year-old brand now seeking its own capital-market footing for the next growth leg.
Revenue up 4.5× in three years — what's driving it?
Revenue ran RMB 5.6 bn → 15.2 bn → 25.6 bn across 2023–2025, roughly a 4.5× expansion.
Deliveries surged from 20,000 units in 2023 to 123,000 in 2025 — a 99% year-on-year jump.
This means → the revenue explosion is almost entirely volume-driven, not pricing. Whether the volume story can continue is the first question any investor should ask.
A 9.4% gross margin — is that enough to survive?
Gross margin improved from 6.3% in 2024 to 9.4% in 2025, driven by two factors: a rising share of higher-margin overseas sales and unit-cost dilution from scale.
In plain terms = for every RMB 100 of cars sold, Avatr kept RMB 6.3 last year and RMB 9.4 this year. Progress is clear, but compared with profitable peers like BYD and Li Auto, it is still at the "just covering operating expenses" stage.
Avatr runs an asset-light model — it outsources manufacturing to controlling shareholder Changan Auto and focuses on product definition and branding. This keeps capex low but leaves manufacturing profit with Changan.
Where does Avatr rank in the premium NEV segment?
In 2025, Avatr ranked eighth by volume in China's RMB 200k-plus premium new-energy passenger vehicle market.
Model-level results: the Avatr 06 placed fourth among RMB 200k+ mid-size cars, the 07 placed fourth among same-price SUVs, and the 12 ranked second among RMB 300k+ full-size cars.
This reflects a pattern of strong individual models but limited overall brand share — competitive at the model level, still small at the brand level.
Why pay RMB 11.5 billion for a 10% stake in Huawei's auto unit?
In February 2025, Avatr paid RMB 11.5 billion for a 10% equity stake in Yinwang (引望), Huawei's smart-vehicle solutions subsidiary. The two sides will co-develop next-generation models.
This means → Avatr converted its Huawei relationship from a supplier contract into an equity tie, locking in deep co-creation rights over autonomous-driving and cockpit technology.
In plain terms = it went from "Huawei sells tech, Avatr buys tech" to "I own part of your tech company and we build the next car together."
Why is overseas expansion the key valuation variable?
Overseas revenue grew from RMB 223 million in 2024 to RMB 1.40 billion in 2025, lifting its share of total revenue from 1.5% to 5.5%.
By end-2025, Avatr had set up over 80 sales outlets across 38 countries and regions, with a plan to enter Europe formally in 2026.
This means → overseas markets carry higher margins than China and were a core driver behind the gross-margin lift from 6.3% to 9.4%. Whether Europe materialises and whether the overseas revenue share keeps climbing will directly shape how Hong Kong investors price this stock.
Content is for reference only, not financial advice.