Avatr Loses $1.9B in Four Years as EV Firm Seeks Hong Kong IPO Revival

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Avatr Technology, a Chinese electric vehicle startup supported by Changan Automobile and a leading technology company, announced its revised IPO filing after its initial application expired. Over the past four years, the company accumulated losses totaling approximately $1.9 billion.

In the most recent data, Avatr’s net loss decreased by 13% from the previous year to around $515 million, while revenue increased significantly by 69%, reaching about $3.7 billion, driven primarily by strong sales of new energy vehicles. Despite these gains, the firm still reported total net losses of nearly $1.5 billion from 2022 to 2024.

The company’s revenue growth was accompanied by rising research and development costs, which climbed 72% last year to nearly $309 million. R&D expenses now represent about 8.1% of revenue, up slightly from before.

Looking ahead, Avatr plans to enhance its financial health and achieve profitability by focusing on several strategic initiatives. These include shifting its product mix toward more profitable premium models, expanding sales into targeted international markets, and tightening cost control across procurement, R&D, and sales operations.

Founded in 2018 through a collaboration between Changan Auto, Huawei, and a major lithium battery manufacturer, Avatr launched mass production in 2022. Last year, its delivery volume doubled from the previous year to over 122,000 vehicles. However, this year has seen a downturn in sales due to changes in China’s NEV tax exemption policies and intensified competition. In the first five months alone, deliveries dropped more than 50% compared to the same period the previous year, totaling just over 20,000 units, though exports increased by 33%, reaching nearly 3,000 units.

The company first filed for a Hong Kong IPO last November, aiming to use the raised funds to develop new vehicle models, create next-generation intelligent platform architecture, expand its brand and sales network, and strengthen working capital limits.