Amidst the turbulence of the new energy vehicle market, Chang'an Automobile appears to be facing an unprecedented challenge. In particular, its high-end brand Avita, which holds great promise, has seen sluggish sales and far underperformed expectations, becoming a stumbling block in Chang'an Automobile's new energy strategy.

Since the inception of the Avita brand, Chang'an Automobile has spared no effort in allocating resources to it. From funds, personnel to technology, Chang'an Automobile has virtually given Avita whatever it needs, demonstrating an extraordinary preference for the brand. However, this preference has not translated into corresponding market returns. Despite strong support from Chang'an Automobile, as well as Huawei and CATL, Avita's market performance remains unsatisfactory.

Avita sold only 27,600 units in 2023, far below its target of 100,000 units, achieving just a quarter of its goal. Moving into 2024, although sales have rebounded somewhat, monthly sales still hover around 4,000 units, lagging far behind competitors in the same segment.

Chang'an Automobile has spared no expense in investing in Avita. The B-round financing alone raised 3 billion yuan, with Chang'an Automobile contributing 1.23 billion yuan. With three rounds of financing, Avita has raised a total of nearly 8 billion yuan. However, despite this substantial investment, Avita's sales have continued to languish. This raises questions about whether Chang'an Automobile has chosen the wrong path or overestimated the market's acceptance of the Avita brand.

Behind Avita's poor sales figures lie its awkward market positioning and limited product line. In the current new energy vehicle market, plug-in hybrids and extended-range electric vehicles (EREVs) are experiencing significant growth, while pure electric vehicles face fiercer competition. However, Avita has pinned all its hopes on pure electric vehicles, undoubtedly increasing its market pressure.

At the same time, Avita's product line also appears overly simplistic. Compared to Chang'an's Qiyuan and Shenlan brands, Avita lacks diversity in powertrain options, failing to meet the diverse needs of consumers. Although Avita has announced plans to introduce EREV models, it remains uncertain whether this move will quickly reverse its declining sales trend.

Avita also faces significant pricing challenges. Compared to similarly positioned competitor models, Avita's pricing is notably higher, limiting its market competitiveness to some extent. Although Avita has certain advantages in autonomous driving and energy replenishment, these advantages have not translated into sufficient brand premium capabilities. In today's consumer landscape where cost-effectiveness is increasingly valued, Avita's high-priced strategy is undoubtedly a significant factor contributing to its sluggish sales.

Furthermore, Avita's brand power is relatively weak. Compared to new automotive forces such as NIO and Xpeng, Avita lags behind in terms of brand awareness and user reputation. This puts Avita at a disadvantage in market competition, making it difficult to attract sufficient consumer attention.

Faced with Avita's predicament, Chang'an Automobile is actively seeking solutions. From expanding its model range, adjusting pricing strategies to strengthening brand building, Chang'an Automobile is attempting to find a way out for Avita. However, it remains uncertain whether these measures will truly address Avita's problems.

In the long run, for Avita to establish itself in the new energy vehicle market, it must quickly find a suitable market positioning and development path. Meanwhile, Chang'an Automobile needs to more prudently assess its investment-to-return ratio in the high-end new energy market to avoid the risks of blind expansion.

In summary, Avita's predicament is not only a microcosm of Chang'an Automobile's new energy strategy but also a reflection of the fierce competition in the overall new energy vehicle market. In this ever-changing market, only those brands that can quickly adapt to market changes and accurately grasp consumer needs will ultimately prevail. For Avita, there is still a long way to go to overcome its current difficulties and achieve its goal of brand ascension.