Changan seeks to sell 10% stake in Avatr at implied valuation of $4.7 billion

Phate Zhang

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Nov 13, 2026, 8:54 AM GMT+8

For comparison, Nio, Xpeng and Li Auto currently have market capitalizations of about $7.64 billion, $9.08 billion and $12.05 billion, respectively.

Changan's stake will fall to 30.994% after the transaction, though it will remain Avatr's largest shareholder.

Changan Automobile (SZSE: 000625) plans to sell a 10% stake in its premium EV subsidiary Avatr through a public listing, with a minimum asking price of 3.18 billion yuan ($474 million).

The stake was put up for sale on November 12, with the disclosure period running through December 10, according to the Shanghai United Assets and Equity Exchange. A buyer has yet to be determined.

The sale involves existing shares held by Changan, which will receive the proceeds. Avatr will not directly receive new funding from the transaction.

The minimum asking price implies a total equity valuation of about $4.74 billion for Avatr, with the final transaction price dependent on bids from qualified buyers.

For comparison, Nio Inc (NYSE: NIO), Xpeng (NYSE: XPEV) and Li Auto currently have market capitalizations of about $7.64 billion, $9.08 billion and $12.05 billion, respectively.

Changan currently holds a 40.994% stake in Avatr, while CATL (HKEX: 3750) is the second-largest shareholder with 9.1742%, according to the sale documents.

If the transaction is completed, and assuming no other ownership changes, Changan's stake will fall to 30.994%, though it will remain Avatr's largest shareholder.

The stake sale comes as Avatr pursues a Hong Kong listing. The company resubmitted its listing application on June 30 after its previous application lapsed at the end of its 6-month validity period.

The sale terms require prospective buyers and their affiliates to have no competitive relationship with Avatr or its affiliates. Buyers must also pledge that their funding sources will not affect the company's future listing process.

Consortium bids are permitted. Prospective buyers must pay a deposit of 500 million yuan, and the successful buyer must pay the full transaction amount in a single payment within 3 working days of signing the contract.

If only 1 qualified bidder emerges by the end of the disclosure period, the stake will be sold by agreement at no less than the minimum asking price. If there are 2 or more, the buyer will be selected through online bidding.

Avatr delivered 7,056 vehicles in October, trailing China's leading EV startups. Nio Inc, Xpeng and Li Auto delivered 34,246, 50,237 and 29,025 vehicles, respectively, last month.

Avatr posted a net loss of about 3.49 billion yuan last year, according to audited financial data for 2025 included in the sale documents, in line with the loss disclosed in its earlier prospectus.

The earlier prospectus showed that the company's gross margin rose to 9.4% in 2025 from 6.3% in 2024, though its relatively small purchasing volumes continued to limit its bargaining power with suppliers.

Avatr also acquired a 10% stake in Huawei's intelligent automotive business unit, Yinwang, or Newcool, for 11.5 billion yuan in 2025. It recognized 182 million yuan as its share of the associate's profit that year.

Xpeng's monthly deliveries topped 50,000 for the first time, while Nio and Li Auto both saw declines.

($1 = 6.7174 yuan)