Rising price wars in 2024 and the tempo of rivals bringing out the old have made the "knockout" crisis felt by every car brand head. They are stimulating sales through more internal reform measures.
According to media reports, Avita management initiated a salary change, and managers above the director level signed a new salary agreement. Their monthly income was directly linked to sales and increased the floating ratio. According to people familiar with the matter, the year-end sales target, the management pressurized 10,000 vehicles.
Avita officials confirmed the news to Interface News. It is reported that the annual sales target of Avita in 2024 is 90,000 vehicles.
The salary structure adjustment reflects Avita’s internal pursuit of large-scale sales. In 2023, Avita’s annual sales volume is 27,000 vehicles, far from reaching the sales target of 100,000 vehicles.
Market pressures and capital conditions are demanding that Avita boost sales as quickly as possible. The price war that began in 2023 has continued this year, with experienced automakers seeking market share at the expense of profits.Wise self andCompetitors in the high-end pure electric market are seeking to expand by adding cost-effective products or expanding their network layout.
At the level of capital markets, state-owned industriesAnd private capital outside the automotive industry chain companyAlthough the investment of vehicle companies is still active, it has also turned cautious. Affected by various factors such as geopolitics, domestic vehicle companies have also found it difficult to attract large-scale US-funded LP/GP-led pension or Private Offering Funds.
This is not good news for Avita, which has not yet formed positive cash flow and relies on external financing for blood transfusion. From 2020 to the first half of 2023, Avita’s loss reached 4.136 billion yuan.
Avitayu,Jointly participate in building with Huawei. Despite the technical advantages of the three companies, in the past three years since its establishment, it has failed to accurately grasp the rhythm of the market, and is still in the stage of brand perception establishment from 0 to 1, and has not yet gained a firm foothold.
Senior automotive industryMei Songlin pointed out in an interview with Interface News that newly established car brands need to rely on time or a sufficiently obvious long board to establish a strong brand identity.Cars andThe ability to gain a certain market share lies in the fact that the three companies have established labels with sufficient intelligence, clear positioning, and extreme service to the outside world.
"Although there are no shortcomings in Avita’s products, the positioning is vague, and consumer perception is not clear enough. The blessing of Huawei has not helped Avita establish its core competitiveness."
Fitch Ratings Asia Pacific Corporate Ratings Director Yang Jing told Interface News that for traditional auto companies, especially state-owned auto brands,Customer-centric product design, marketing strategies, and rapid technology and product iterations are areas where they are relatively inexperienced.
From the external environment, in the passenger car market of more than 300,000 yuan, the penetration rate of new energy vehicles in 2023 is only 31.4%, which is lower than the overall market. Represented by BMW, Mercedes-Benz and AudiThe brand still has market appeal. Especially in the situation of the continuous slowdown of the pure electric vehicle market, the new brand represented by Avita needs to come up with new strategies to deal with the crisis.
Avita MaxFounder is increasing its emphasis on Avita, which can be seen in the management change at the end of last year.
According to personnel adjustmentTan Benhong, the former chairperson and CEO of Avita, became the deputy secretary of the party committee and is no longer responsible for Avita-related business. Chen Zhuo, the former vice president of Avita, was promoted to president and took over the operation and management of Avita. The chairperson was Zhu Huarong, secretary of the party committee and chairperson of Changan Automobile.
The cooperation between Avita and Huawei will also become closer. At the launch of Avita 12, Avita’s first pure electric sedan, in November last year, Yu Chengdong, chairperson of Huawei’s smart car solutions BU, shared a rare stage with Zhu Huarong. Deliveries of this model reached 5,021 in January, second only to Model Y and 001 in the high-end pure electric vehicle market above 300,000 yuan.
In addition, Huawei and Changan Automobile will establish a joint venture, in which the former will integrate the core technologies and resources of its smart car solutions business into the new company.It is pointed out that Avita may benefit from expanding the brand’s product matrix and model number, and deepening the depth of cooperation with Huawei. This year, Avita plans to launch two new products and supplement four extended-range power models.
Yang Jing believes that the advantages of traditional automobile companies lie in supply chain management and cost control. At the same time, large traditional automobile companies have diverse financing channels and low financing costs, which provides confidence for them to continue to invest in the unprofitable new energy vehicle business. In August last year, Avita completed the B round of financing, and the proceeds raised to 3 billion yuan.