Changan Automobile has initiated the sale of a 10 percent stake in its premium electric vehicle subsidiary, Avatr. The offering, listed on the Shanghai United Assets and Equity Exchange, sets a minimum price of ¥3.18 billion, or approximately $474 million. This valuation implies a total equity value for Avatr of about $4.74 billion.
The sale involves existing shares currently held by Changan. Following the transaction, Changan's ownership will decrease from 40.994 percent to 30.994 percent, though it will maintain its position as the largest shareholder. CATL remains the second-largest shareholder with a 9.1742 percent stake.
Prospective buyers have until December 10 to submit bids. The terms require a deposit of ¥500 million, with the full payment due within three working days of contract signing. Bidders must not have competitive relationships with Avatr and must ensure their funding sources do not impact the company's planned Hong Kong listing.
Avatr reported a net loss of approximately ¥3.49 billion for 2025. While its gross margin improved to 9.4 percent in 2025 from 6.3 percent in 2024, the company continues to face challenges in supplier bargaining power. In October 2026, Avatr delivered 7,056 vehicles.
