Counterattack.
Thanks to the popular Avita 07, Avita has achieved sales of over ten thousand for two consecutive months, finally achieving the long-awaited breakthrough.
Striking while the iron is hot, after the success of the extended range route of the 07 model, Avita launched the extended range version of the 11 model on December 2nd; just one month ago, the extended range model of the 12 model had just made its debut. Avita is making frequent moves and clearly showing its "aggressive" side.
Avita Vice President Yong Jun spoke to The Wall Street Journal about the surprising success of the 07 and the new 12 models, leaving dealers with a sudden feeling of being overwhelmed. The rapid surge in the market has allowed it to break free from the limitation of "thousands of units per month" and regain the most crucial morale.
CEO Chen Zhuo stated that now dealers have "done the math", and everyone is actively following Avita's footsteps to expand their stores. In the capital markets, Avita has also initiated a third round of financing with a scale of billions and has set a timetable for IPO in 2026.
Once they found their rhythm, Avita's ambitions grew even larger.
Chen Zhuo revealed to The Wall Street Journal that next year Avita aims to reach a total sales goal of 0.22 million units. His reason is simple: achieving sales at this level annually would allow Avita to achieve a break-even point.
As the vanguard of Chongqing Changan Automobile's rise, Changan has spared no effort. Chongqing Changan Automobile's financial report shows that in the first half of the year, Avita recorded a revenue of 2.24 billion yuan; a net loss of 1.059 billion yuan, totaling a loss of 3.437 billion yuan from 2020 to date. As Chongqing Changan Automobile's chairman Zhu Huarong said, its new energy brand has become the fastest bleeding sector in the group.
How to quickly achieve economies of scale and achieve self-generation is a serious test for Avita. This relates to its survival, and more importantly, whether it can truly establish itself in the luxury market.
Starting early this year, Zhu Huarong personally took charge as the chairman of Avita, and swiftly carried out radical reforms internally on channels and organizational structure, discarding the burden of directly-operated stores and organizing internal systematic capabilities. After cutting through the confusion, efforts were made on the product side, creating the popular Avita 07 and quickly reinforcing with the rejuvenated Avita 11 and 12.
In terms of products, the lower prices and increased range have successfully expanded Avita's product audience. Chen Zhuo said that the market's perception of Avita was relatively youthful before, mainly targeting people around the age of 20-30. After the launch of the 07, it opened up acceptance across all age groups, from the post-70s generation to the post-00s, with the 50s group accounting for as high as 20%.
The effectiveness of channel reforms is also being unleashed, with Yong Jun stating, "Retail segment operations have their specialties, we need the most skilled people to help us serve our customers." Most importantly, Avita has started learning from Huawei, Ideal, Xiaomi, and others about insights into and standard driving processes for C-end consumers, aiming to get closer to consumers and turn hit products into a norm.
From the current sales growth trend, Avita has made the right bet and bid farewell to blindly rushing forward. After clarifying its strategy, Avita is getting closer to shore, while also increasing its stakes, daring to bet on additional volumes.
Chen Zhuo frankly stated, "Compared to competitors, Avita's product strength has not been fully unleashed, with a coverage rate of only 60% in third and fourth-tier cities. If our channels could cover more, the proportion of mileage increase should be higher, now at 60%, it should be around 70% to be reasonable."
In terms of sales outlets, Avita requires dealers in first and second-tier cities to upgrade flagship stores next year; in new products, it is preparing to launch 17 models, including sedans, large SUVs, MPVs, among others, while the second-generation Kunlun extended-range technology is also under development.
Chen Zhuo believes that understanding users and product development are irreplaceable. He believes that even the strongest technology will eventually become an industry standard. After the market reshuffle in the next two to three years, the ones that will emerge will be players with different styles. Avita has been positioning itself accurately from the beginning and will continue to focus on building the brand, while investing in design and concepts.
Chen Zhuo has set a goal - in two years, Avita aims to compete with top luxury brands in both hardware and software, to successfully achieve the success of the second-generation products. Only then can this brand truly establish itself and have influence.
One could say that behind the aggressive Avita is a rational disruptive strategy. However, the market waits for no one, and the emerging new forces of Avita's generation will also accelerate their moves. Only by quickly implementing plans and adjusting strategies in real time according to industry trends, can Avita possibly secure a ticket to the end game.