On the evening of August 8th, the high-end intelligent electric vehicle AVETA 11, created by a joint effort from Chang’an, Huawei and CATL on the CHN platform, was officially released. Similar to the “Small Cup, Big Cup, Super Big Cup” which first made Luo Yonghao famous, AVETA also released three versions, including:
- Long Endurance Dual Motor Version, priced at 349,900 yuan, to be delivered in December this year;
- Long Endurance Dual Motor Luxury version, priced at 369,900 yuan, to be delivered in December this year;
- Ultra Long Endurance Dual Motor Luxury version, priced at 409,900 yuan, to be delivered in the first quarter of next year.
In addition, there is also a limited-edition collaboration with Matthew M. Williams, creative director of Givenchy, called AVETA 011, with a global limit of 500 units and a suggested retail price of 600,000 yuan, which will also be delivered in December this year.
In the article “If Not for Recent Promotions, I Would Have Forgotten Who AVETA Is!”, we introduced the twists and turns of AVETA’s past. AVETA originated from a cooperation between Chang’an NIO, but it was only thunder without rain for a long time. Eventually, Chang’an and NIO went their separate ways. Then Chang’an brought in ICT giant Huawei and new energy newcomer CATL to set up AVETA.
Now, AVETA has finally been launched. From the appearance of Chang’an Auto’s Chairman Zhu Huarong, Huawei’s Chairman Xu Zhijun and CATL’s Chairman Zeng Yuqun standing together to support AVETA at the launch event, it can be seen that all three bigwigs have high expectations for AVETA.
Therefore, AVETA can be said to be “born with a silver spoon”, with the capital to be willful. However, even though AVETA has strong backing, can it really be willful under the supervision of the three bigwigs?
In other words, as the Chairman and CEO of AVETA Technology, can Tan Benhong navigate among the three strong forces and lead AVETA out of the shadow of the strong, thus giving it its own soul?
Just Chang’an’s Own Son.
The most attractive point of AVETA is that it is backed by the three giants of Chang’an, Huawei and CATL. With AVETA, users can enjoy the technological dividends brought by the three giants at the same time.
But as we mentioned in the article “DENZA’s New Life Does Not Hide the Embarrassment of Joint Venture New Energy”, currently in the new energy market, whether it is cooperation between domestic and foreign ventures or domestic and domestic ventures, the final results are not satisfactory, and can even be described as a dismal outcome.
So when the question is asked about AVETA, will it repeat the fate of those joint venture new energy brands that were submerged by the tide of the times?
First of all, from a capital perspective.On August 2nd, Avita just completed a total financing scale of nearly 5 billion yuan, in which Changan Automobile continued to increase capital and expand its share, holding a stake of 40.99%. CATL did not participate in the increase, and its shareholding ratio was diluted to 17.10%, but even if the shares were diluted, CATL still ranked as the second largest shareholder of Avita.
It is worth mentioning that, even though Huawei has a high presence in Avita, Huawei did not participate in this round of investment. However, Changan Automobile Chairman Zhu Huarong said that Huawei is like an investor without formally investing. Interestingly, NIO still retains its shares and its shareholding ratio has been diluted from 1.13% to 0.81%, still with a negligible presence inherited from Changan NIO.
From the equity structure, only Changan continues to bet on Avita among the three giants.
Secondly, from a technical perspective, Changan is responsible for Avita’s whole vehicle development and manufacturing.
As one of China’s four major automakers, Changan naturally has rich experience in whole vehicle R&D and manufacturing. However, Changan’s growth has long relied heavily on the contribution of joint venture brands, especially Changan Ford. Therefore, when Changan Ford’s sales were cut in half in 2018, Changan quickly fell into a slump. But in recent years, under the leadership of Zhu Huarong, Changan has shown new growth.
From Changan’s performance in recent years, there has been a significant transformation compared to the past. Both the fuel-based cars based on Ark architecture and the Changan Deep Blue based on the new digital platform EPA1 have refreshed users’ inherent perceptions of Changan in terms of design and performance.
However, Changan has long established itself as a mid-to-low-end brand in the hearts of the Chinese people. Therefore, whether users can trust Changan to guarantee the quality of the high-end brand Avita is a headache.
But judging from the Avita launch event, whether it is the sail-shaped active lifting tail wing with a strong sense of racing or the 3.98s acceleration time of 0 to 100 km/h and the shortest braking distance of less than 35m, it is believed that they will still bring some exciting expectations to users in terms of the mechanical quality of Avita.
Secondly, Huawei is responsible for providing intelligent automotive solution.
Currently, there are usually two cooperation models between Huawei and automakers. One is the Huawei Select model represented by AITO 2.0, in which Huawei takes the lead in controlling both whole vehicle design and sales channels. The other is the Huawei Inside model that Avita is currently using.
Avita is the second model to use the Huawei Inside model after the Hycan Alpha S. Unlike Hycan, which only has one model using the Huawei Inside model, all models of Avita use the Huawei Inside model, which is a significant investment in Huawei.# The Huawei HI mode is actually Huawei’s full-stack smart automotive solution, which includes solutions to systems covering dynamic energy and intelligence like intelligent cabins and automatic driving. Avita is equipped with Huawei’s TMS thermal management system, dual-motor four-wheel drive system, Huawei Harmony OS intelligent cabin vehicle operating system, Huawei AOS intelligent driving operating system, and Huawei VOS intelligent vehicle control operating system, all of which belong to Huawei’s full-stack smart automotive solution.
However, while enjoying the technological advantages brought by Huawei, Avita loses its grasp on the core technology. For Changan, it used to rely on Ford in the era of internal combustion engines and has now switched to Huawei in the era of new energy vehicles.
Third, CATL is responsible for battery energy.
Avita is equipped with a high-energy-density ternary lithium electronic battery pack manufactured with CATL’s CTP (Cell to Pack) efficient grouping technology. Under CLTC working conditions, the Avita long-endurance version has a range of 555 kilometers, and the ultra-long-endurance version has a range of 680 kilometers.
Of course, we have seen similar data too many times, and we are not very excited about it anymore. However, at the launching event, Tan Benhong stated that Avita’s 240KW high-voltage fast charging technology can add 200 kilometers of range in just ten minutes, truly achieving the goal of diluting the user’s range anxiety in the time it takes to drink a cup of coffee.
Unfortunately, Avita will build around 100 high-voltage fast charging stations in 19 cities throughout the country by the end of next year, which means that most Avita users will still have little chance of overcoming their range anxiety. But it is gratifying that a big step has been taken towards overcoming range anxiety.
Backed by three giants, it is both an advantage and a disadvantage.
From the above content, it can be seen that Changan, Huawei, and CATL have each taken out their best abilities to create a unique Avita. However, despite this, Avita may not necessarily have more advantages than other brands.
Because Huawei and CATL play the role of top-tier suppliers in the industry, unlike Changan. Since they are suppliers, it is impossible for them to go all-in on Avita in terms of technology and energy.
By opening Huawei’s “car enthusiast circle,” it can be seen that Jihou Alpha S, Avita, GAC Aion, and others are using the Huawei HI mode. In addition, Huawei is still raising questions about switching the car badge to AITO.Ningde era is the same. As a rising star in the energy industry in recent years, Ningde era has varying degrees of cooperation with both imported brands such as BMW, Daimler, and Volkswagen, and domestic brands such as Geely, NIO, GAC, and Dongfeng.
Therefore, for Huawei and Ningde era, if Altair is too powerful, it will backfire. Especially with Huawei’s dominant Wanjie M7 and the overlapping price range of Altair, it is difficult for Huawei to balance the interests.
Changan, on the other hand, plays the role of a host plant in the industry. Altair is an important weapon for Changan to establish itself in the new energy market and impact the high-end market. This brand was born in 2018 and was officially launched in 2022. Changan has already invested too much effort in it. In the period of the new energy vehicle boom, Changan, which was already late in the game, will find it difficult to gain a foothold in the unpredictable new energy era, if it loses Altair, relying solely on the Changan Deep Blue, a single-strand loom.
Therefore, although Altair was jointly created by three giants, only Changan treats Altair as a “son” to cultivate. As for Huawei and Ningde era, they have their own ambitions and territories, and Altair is just one of them.
Therefore, whether Altair will follow in the footsteps of those joint venture new energy brands that were submerged by the tide of the times is a challenge for Tan Benhong, the person in charge.
Tan Benhong’s Dilemma
Facing Altair squeezed between the three giants, the most difficult task falls on Tan Benhong, who is the chairman and CEO.
How to maneuver among the three companies is second only to ensuring Altair’s independence when Huawei controls the core technology and has a strong brand halo. This is the biggest challenge.
Currently, Altair has its own sales channels, but it also partly enters Huawei’s sales channel. In addition, the Alpha S・HI version of Hycan Alpha is also waiting to enter Huawei stores. In this way, in the future, users may naturally add the title of “Huawei” to Altair, AITO Wanjie, and Hycan Alpha S・HI version, and even more models may be possible.
Therefore, although Altair’s entry into Huawei’s sales channels will help with short-term sales growth, from a longer-term perspective, Altair’s brand independence may be damaged, which is not conducive to the establishment of self-brand tonality and the competition for user mental positioning through precise positioning.
Therefore, in the opinion of “Electric Trend” journalists, to ensure Altair’s independence, Tan Benhong currently needs to establish two major systems.
First, the construction of a dedicated Altair communication system.The emphasis on the “Avita dedicated communication system” is due to the fact that from Avita’s press conference, it can be seen that in addition to Avita’s official and conventional media platforms, the various official accounts of Huawei are also prominently listed, with great potential to dominate. In another official live version, Huawei’s various accounts were “intentionally” removed.
Lipman said, “At any point in time, people’s behavior is based on their imagination of the real world at that moment.” Effective communication can make users understand the brand enough to generate more imagination, thereby gradually forming a unique brand tone in the interaction between users and the brand.
Avita’s debut has put Huawei in such a prominent position, which is not conducive to users’ recognition of Avita’s brand. Perhaps Avita has something to hide, but this should serve as a warning, and there should not be dependence on Huawei in both sales channels and communication channels.
Therefore, Avita must establish a dedicated communication system and establish an image of Avita as not belonging to any other brand in front of users.
Second, the construction of a high-end intelligent automobile solution development system.
Today, whether it is a traditional brand or a new power brand, there is a significant difference between making new energy vehicles and making fuel vehicles in the past, that is, most brands focus on the organic integration of resources and ignore the research and control of core technology.
Avita is a clear example. Although Chang’an Automobile is Avita’s largest shareholder and is nominally Chang’an Automobile’s sub-brand, the core three-electric system of new energy vehicles and the intelligent system that represents the level of automotive technology are firmly controlled by Contemporary Amperex Technology and Huawei, and Chang’an as the main body is only a soul-bearing shell, which is really surprising.
Integrating the advantages of the three parties will undoubtedly bring Avita advantages that other brands do not have, but at the same time, this advantage has inherent uncertainty due to the close cooperation of the three parties. Once there is a conflict internally, Avita’s crisis is also coming.
For Huawei and Contemporary Amperex Technology, the existence or absence of Avita is meaningless, but for Chang’an, if Avita is destroyed someday in the future, it will have a fatal blow to Chang’an’s position in the high-end new energy market.
Therefore, from Tan Benhong’s perspective, Avita needs its own high-end intelligent solution development system to better counter the future uncertainty.
The core of building these two systems, in the view of the “Electric Motor Trend” reporter, is that we must get rid of the “habitual dependence” starting from Chang’an, and Avita still needs to have some “things of its own”.## In Conclusion.
The launch of Avita means a further change in the pattern of high-end new energy market. Compared to well-known brands like NIO, IDEAL or AITO, Avita has obvious and attractive selling points in its unique design and strong backing from the three major firms.
Although Avita has clear advantages, it should be aware that fortresses are often broken from within. Since Avita was created through cooperation, it may be destroyed by division.
At present, Avita seems to be a somewhat intricate brand led by Changan, deeply empowered by Huawei, and claimed as a “home-grown product” by Ningde Times Chairman Zeng Yuqun.
But we believe that Avita is not the “lackeys of three families” some people criticized. However, Tan Benhong may need to keep asking himself who Avita really is.
This article is a translation by ChatGPT of a Chinese report from 42HOW. If you have any questions about it, please email bd@42how.com.