Core Summary
As a high-end new energy brand resulting from the collaboration among Changan, Huawei, and CATL, Avita aims to achieve sales of over 120,000 units by 2025 (representing three years of steady growth). However, its delivery volume in the first half of 2026 decreased by 50% year-on-year. Despite possessing top-tier manufacturing capabilities, intelligent technology, battery resources, original designs, and a variety of models, Avita has failed to retain consumers. The issues lie in the fact that its resource advantages are no longer unique, its design lacks distinctiveness that aligns with consumer needs, its brand positioning is ambiguous, and it lacks a core selling proposition that sets it apart from competitors.
Detailed Analysis
1. Why isn’t the “powerful combination” of Changan, Huawei, and CATL as effective as before?
Previously, Avita benefited from Changan’s vehicle manufacturing expertise, Huawei’s advanced intelligent technology, and CATL’s battery supply, which made it seem reliable to consumers. But things have changed: Huawei’s intelligent driving and cabin technologies are now available in over 50 car models from 25 different brands. What used to be Avita’s unique advantage has become a common feature among many competitors.
When purchasing a car, consumers don’t simply choose Avita because of these partners; they look for bigger space, lower prices, or more family-friendly features. Resources alone are not enough to win the market—just like having ingredients doesn’t guarantee a delicious dish unless you can create something unique.
2. Original design is distinctive, but why hasn’t it attracted more buyers?
Avita’s design is indeed innovative, unlike other electric cars with a typical “matryoshka” layout (a large screen in front and a light strip at the back). Its avant-garde styling is easily recognizable. However, such uniqueness can conflict with consumer preferences for practicality. Those seeking a reliable family car may find the design too bold or worry about its obsolescence after a few years, or they might be concerned about limited rear passenger space.
Later models like the 07 (a volume-oriented SUV) and 06 (targeted at younger consumers) tried to appeal to the general market but failed to connect the design with specific use cases. For example, it wasn’t clear how these cars would be used in everyday life—whether for family camping on weekends or for urban commuting. Without a clear purpose, consumers find it hard to see the value in Avita.
3. Who exactly is Avita for?
Avita positions itself as “new luxury,” “self-pleasing,” and “futuristic,” but these terms are too abstract. Consumers want to know: who does it really serve? Young people tired of traditional luxury cars? Or middle-class families looking for a decent family vehicle? These two groups have very different needs—youngers seek affordability and uniqueness, while middle-class families value space and comfort. Trying to cater to both may result in failing to satisfy either group effectively. For instance, the concept of “self-pleasure” remains vague: is it about a thrilling driving experience, comfortable seating, or an attractive design?
4. After spending 13.2 billion yuan, why hasn’t Avita found its core selling proposition?
From 2022 to 2025, Avita incurred losses of 13.2 billion yuan on research and development, marketing, and distribution. Its main selling point remains the combination of Changan, Huawei, and CATL’s technologies, without any unique selling features that set it apart. Other brands can also access similar technology and batteries—so why should consumers choose Avita?
High-end brands need something truly distinctive, such as a unique driving experience, excellent customer service, or a feature that no one else offers. Avita has yet to establish such a differentiator.
5. A decline in sales indicates it’s time for choices
Avita needs to make critical decisions: what to prioritize and what to give up. For example:
- Should the 07 SUV focus on practicality (sacrificing some uniqueness for more space) or maintain its avant-garde design?
- Should the 06 target younger consumers by lowering prices and highlighting its unique features, or aim for higher sales volumes?
- Should Huawei’s brand image be emphasized first, or should consumers fall in love with Avita’s products before realizing they include Huawei’s technology?
The market won’t buy into a product that offers everything; it will only buy into what you do best. Making choices is more important than anything else.
Final Conclusion
Avita’s struggles are not isolated. Many new energy cars have access to top-tier resources, but to succeed, they need to establish a clear identity: who they are for, what they offer, and why consumers should choose them over others. This is the key to moving from being “good-looking” to truly “chosen by customers.”