Changan and NIO invest in establishing a new energy vehicle technology company

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Recently, we learned from the Qichacha official that on October 20, Avita New Energy Vehicle Technology (Shanghai) Co., Ltd. was established, the legal representative is Ma Xinjie, the registered capital is 10 million yuan, and the business scope includes: auto parts research and development; conference and exhibition services; enterprise management consulting, etc.

Qichacha’s equity penetration shows that the company is 100% controlled by Avita Technology (Chongqing) Co., Ltd., which is a holding company of Changan Automobile (000625) and NIO.

It is worth noting that, according to previous information, Avita Technology will operate completely in the market, operate independently, develop independently, and join hands with Changan Automobile, Huawei, and Ningde Times to create new products. Previously, the expected carrier company for Changan, Huawei, and Ningde Times to jointly build cars is Avita Technology. This new high-end independent brand launched by Changan will run in parallel with the existing Changan brand.

On May 20, 2021, Chongqing Changan Automobile joint stock company (hereinafter referred to as "Changan Automobile" or "Company") holding subsidiary Changan NIO New Energy Vehicle Technology Co., Ltd. has officially changed its name to Avita Technology Co., Ltd. (hereinafter referred to as "Avita Technology"). Avita Technology will be fully market-oriented, operate independently, and develop independently. Together with Changan Automobile, Huawei, and Ningde Times, we will create a world-leading, autonomous and controllable intelligent electric connected vehicle platform (CHN), create a rich range of intelligent vehicle products, and build a "people-car-family" smart life and smart energy ecosystem.

According to the official, the name "Avatar" is taken from the English Avatar, which means virtual avatar in the game or online world. Avatar Technology has given the word a deeper meaning, that is, to create another self in the intelligent parallel world for each user, knowing "you" worries, understanding "you" thinking, and giving "you" what you want. Based on this, Avatar Technology is committed to creating a new generation of intelligent end point beyond the mobile space through future-forward design aesthetics, discreet driving experience and emotional human-machine interaction. Avatar, yourmostemotionalintelligentcompanion.

Avita technology aggregates the superior technologies of Changan Automobile, Huawei and Ningde Times in the fields of R & D and manufacturing, intelligent solutions and energy management ecology, and deeply integrates the strategic resources of the three parties to redefine the future intelligent electric vehicle (SmartElectricVehicle). Huawei will give full play to its ICT technology advantages and jointly build a full value chain of R & D, channels, services, and ecology with Avita Technology to provide users with full-stack smart vehicle solutions and achieve the intelligent level of electric vehicles; Ningde Times, as a power battery provider and new energy solution service provider, empowers Avita Technology with smart electric vehicle power battery technology and jointly creates a safe and convenient energy ecosystem; Changan Automobile will jointly develop the world’s leading intelligent electric connected vehicle platform (CHN) with Avita Technology based on the capabilities of Huawei and Ningde Times.

In fact, the cooperation between Changan and NIO has been in place for nearly 4 years. On April 9, 2017, Changan Automobile and NIO signed a strategic cooperation agreement. Li Bin, founder, chairperson and CEO of NIO, said at the time that the two parties will establish a joint venture company to develop new products (different from JAC’s foundry cooperation). On August 17, 2018, Changan NIO New Energy Vehicle Technology Co., Ltd., a joint venture jointly funded by Changan Automobile and NIO, settled in Nanjing Jiangning Development Zone. Li Bin is the chairperson of Changan NIO, and the vice chairperson is Li Wei, executive vice president of Changan Automobile.

However, since then, the cooperation between Changan and NIO has been delayed. In June 2020, Changan NIO underwent an industrial and commercial change. NIO Li Bin stepped down as the chairperson of the company, and the new chairperson was Tan Benhong, executive vice president of Changan Automobile. Changan Automobile originally held a 50% stake in Changan NIO, but Changan Automobile increased its investment in Changan NIO through cash increases and other means. After the capital increase was completed, Changan Automobile held a total of 95.38% of Changan NIO’s equity, while NIO only held 4.62%. In other words, in the joint venture relationship of Changan NIO, NIO retreated significantly, and Changan Automobile took over.

On November 15, 2020, Changan officially announced that together with two other giants in the automotive industry, Huawei and Ningde Times will jointly create a new high-end smart car brand. In the future, the AB brand will be built based on the CHN architecture (the architecture jointly created by Changan, Huawei, and Ningde Times), and will launch 5 new energy high-end products. The first model may be a high-end pure electric SUV. The product definition of this model is responsible for Changan, equipped with Huawei’s intelligent cockpit platform CDC, autonomous driving domain controller ADC, and some Sandian components.

In the future, AB brand and the existing Changan New Energy will be two independent operating companies, with different product brands and product segments, providing products and services to customers in different market segments. Among them, Changan New Energy is the new energy business bearer of Changan Automobile brand, and AB brand is a high-end intelligent electric vehicle brand jointly created by aggregating the resources of Changan Automobile, Huawei and Ningde Times.