CATL becomes Avatr's 2nd largest shareholder

Chinese power battery giant CATL acquired 23.99 percent of Avatr on Tuesday, becoming the electric carmaker's second largest shareholder after Changan Auto.

Avatr said its registered capital rose to 1.17 billion yuan ($184 million) from 288 million yuan on the same day as well.

"Now we are ready to launch and deliver our first model, the Avatr 11," said Avatr Chairman and CEO Tan Benhong.

The model is scheduled to be unveiled in the second quarter this year, and its mass-production will start in the third quarter.

The carmaker said it is planning to start its Series A financing within 2022.

The Avatr 11, among other things, will feature Huawei's chips and autonomous driving solutions and up to 34 sensors including Lidar and cameras.

It is capable of high-level smart driving on complicated downtown roads, said the carmaker.

The model also sports a 750-volt charging system. It will have a driving range of at least 700 km on one charge and can accelerate from zero to 100 km/hour in less than 4 seconds.

Avatr also said it is expected to be one of the first carmakers to use CATL's latest-generation CTP batteries now that CATL is its shareholder.

China has been the world's largest market for new energy vehicles for seven years in a row as car buyers have began considering such vehicles as serious options.

China sold 3.5 million electric cars and plug-in hybrids in 2021, up 160 percent year-on-year, according to the China Association of Automobile Manufacturers.

The association estimated their deliveries to grow further to reach 5.5 million this year.