Chinese smart electric vehicle company Avatr Technology, backed by state-run automaker Chongqing Changan Automobile and EV battery giant Contemporary Amperex Technology (CATL), said it has secured 3 billion yuan ($411.5 million) in a Series B funding round.
The news on Thursday comes after Hozon New Energy Automobile sealed a 7 billion yuan crossover financing round on Wednesday, marking another major transaction in the Chinese EV sector in just one week.
The Chongqing-headquartered smart EV maker saw a number of new state-affiliated investors participate in the round including the 200 billion yuan Chongqing Industry Investment Fund of Funds; BoCom Financial Asset Investment, the wholly owned subsidiary of Bank of Communications; and Guangzhou Development District Holding Group.
Also participating in the round were existing shareholders including Changan Automobile; South Industry Assets Management, the subsidiary of state-owned China South Industries Group Corporation; and Liangjiang Industry Fund.
Founded in 2018, Avatr Technology currently has two models, the AVATR 11 and AVATR 011, both of which are emotional intelligence-based electric SUVs equipped with Huawei’s intelligent vehicle solution and CATL’s batteries.
Post-financing, Changan Automobile’s 40.99% stake remains unchanged, while South Industry Assets Management will see its equity stake rise to 7.81% from 7.35%, Changan Automobile disclosed in a Thursday filing with the Shenzhen Stock Exchange.
The latest funding round has brought the company’s post-money valuation to 20 billion yuan, solidifying Avatr’s position in the world’s largest EV market, which comprises over 94 brands and 300 models at different prices, according to local market research company Daxue Consulting.
In January, U.S. EV maker Tesla cut prices on all of its Model 3 and Model Y cars in China around 6% to 13.5%, according to Reuters’ calculations. This has prompted at least 40 auto brands operating in China to follow suit and join the price war amid weakening demand, according to Daxue Consulting.
Retail customers bought 641,005 new energy passenger vehicles in July, down 3.6% month over month, according to data from the China Passenger Car Association. But total retail sales in the month were up 31.6% compared with July 2022.