Hubbry Logo
Changan AutomobileChangan AutomobileMain
Open search
Changan Automobile
Community hub
Changan Automobile
logo
7 pages, 0 posts
0 subscribers
Be the first to start a discussion here.
Be the first to start a discussion here.
Changan Automobile
Changan Automobile
from Wikipedia
GM Zhao Fei (2025) at the International Motor Show Germany in Munich

Key Information

China Changan Automobile Group Co., Ltd.[2] (CCAG) is a Chinese central state-owned automobile manufacturer headquartered in Jiangbei, Chongqing.[3] Changan Automobile traces its origins back to 1862 when Li Hongzhang set up a military supply factory, the Shanghai Foreign Gun Bureau. However, it was not until 1959 when the factory was repurposed to manufacture the Changjiang Type 46 Jeep that it became an automobile manufacturer.[4][5]

The company produces and sells vehicles under its own branding, such as Avatr, Deepal, Changan and Kaicene, as well as under foreign-branded joint ventures, such as Changan Ford and Changan Mazda. In 2021, its own brands contributed 76% of its sales (1.75 million, including 1.2 million passenger vehicles).[6] Its principal activity is the production of passenger cars, microvans, commercial vans and light trucks.[7]

A subsidiary of Changan, Chongqing Changan Automobile Co., Ltd.(SZSE: 000625), is listed on the Shenzhen Stock Exchange (but is also state controlled).[3]

History

[edit]

Changan's early origins can be traced back to 1862 when Li Hongzhang set up a military supply factory, the Shanghai Foreign Gun Bureau. In 1863, it was renamed the Suzhou Arsenal. By 1865, Li Hongzhang relocated the Suzhou Arsenal to Nanjing, and became the largest arsenal in China at the time, known as the Jinling Arsenal.[8]

By 1899, it had grown into a major arms production center, equipped with nearly a thousand machines and employing 1,700 artisans, solidifying its position as one of China's primary military manufacturing hubs.

In 1937, when the Second Sino-Japanese War broke out, as Shanghai fell and Nanjing faced imminent threat, Nationalist government decided to relocate Jinling Arsenal westward to Chongqing[9] After relocating, it was renamed the 21st Arsenal.[8]

In 1951, the 21st Arsenal was renamed the State-Owned Factory 456 under the Central Bureau of Military Industry. This marked a significant transition in its organizational structure, aligning it with the newly established administrative framework of the People's Republic of China. The renaming reflected the factory's continued importance in national defense and industrial production during the early years of the PRC.[8]

In 1959 a predecessor entity, Chongqing Changan Arsenal, under contract to the government, began auto manufacturing and built Changjiang Type 46 which was the first production vehicle of China.[10]

In 1984, Changan entered a significant phase of transformation by signing a technical trade cooperation agreement with Japan's Suzuki Motor Corporation. This partnership focused on the development of mini vehicles and engines, marking a pivotal step in the company's evolution. On November 15, 1984, the first batch of Changan-branded vehicles—the SC112 mini van and the SC110 mini truck—rolled off the production line. It marks the official transition of Changan from a military enterprise to a civilian vehicle manufacturer.[11][8]

In 2009, Changan acquired two smaller domestic automakers, Hafei and Changhe.[12] In 2013, Changhe was transferred to Jiangxi provincial government for restructuring, and later became a majority-owned subsidiary of another Chinese automaker BAIC Group.[13]

As of 2010, China Weaponry Equipment is the parent company of this state-owned automaker,[14] and that year Changan became the fourth most-productive car manufacturer in the Chinese automobile industry by selling 2.38 million units.[15]

The company also released a new logo for its consumer offerings in 2010 while commercial production retains the former red-arch brand.[7]

Although it only allowed the company to achieve fourth place among domestic automakers in terms of production, Changan made over 2 million whole vehicles in 2011.[16]

In 2012, it was reported that 72% of production was dedicated to passenger vehicles,[17] but this count likely conflates private offerings and microvans, tiny commercial trucks and vans that are popular in China.[original research?]

In November 2012, Changan Ford Mazda Automobile was divided into two new joint venture companies as part of Ford's divestment from Mazda: Changan Ford and Changan Mazda.[18]

In October 2017, Changan said it plans on ending production of vehicles powered solely by internal-combustion engines by 2025, as the automaker will be selling only plug-in hybrid vehicles and all-electric vehicles from 2025 as a result of climate change and air pollution issues in China as well as stringent emissions regulations. The company stated that this is because Government of China announced that it has passed legislation that will ban new ICE-powered vehicles by the mid-2030s, due to high air pollution and due to China's reiterated commitment in the United Nations Paris Agreement as the automaker wants to remain compliant with the government's automotive emission standards. The automaker is joining Volvo Cars, Jaguar Land Rover, FAW Group, BYD Auto, Lotus Cars, and several other automakers in planning on ceasing production of ICE-powered vehicles in the coming years.[19]

In December 2023, Huawei announced it plans to move core technologies and resources in its smart car unit to a new joint venture with Changan. The new brand Avatr Technology, formerly the Changan-Nio, will engage in research and development, production, sales and service of intelligent automotive systems and component solutions. Changan and its affiliates plan to acquire no more than 40 percent of the new company's equity, with the specific amount of capital contribution and term to be separately negotiated between the two parties.[20][21]

On 9 February 2025, Changan Automobile and Dongfeng Motor both announced that they were both in the process of potentially merging with other unnamed state-owned enterprises, sparking rumors that the two conglomerates would be merged with Dongfeng becoming the dominant partner.[22][23] Later on 4 June 2025, Changan and Dongfeng both announced that they no longer had plans for mergers.[24][25][26]

On 5 June 2025, the State Council announced that it would spin off the automotive business entity of China South Industries Group Corporation, the Changan Automobile, into an independent central state-owned enterprise that directly under the management of State-owned Assets Supervision and Administration Commission of the State Council (SASAC).[24] The spin-off marks the substantial decoupling of the long-standing close ties of Changan's military-industrial background and it will officially be elevated to a Sub-Ministerial-Level Enterprise.[27]

In July 2025, China Changan Automobile Group Co., Ltd., Changan Automobile's new legal independent legal entity after being spun off was established, becoming the 100th central state-owned enterprise and the 3rd automotive enterprise under SASAC and first central state-owned enterprise in Chongqing. The new company was registered in Chongqing with capital of 20 billion yuan. Zhu Huarong, the former president of Changan Automobile, was appointed as the legal representative and chairman by SASAC.[28][29] Later on 29 July 2025, the founding ceremony of China Changan Automobile Group Co., Ltd. was held in Chongqing.[30][31]

Leadership

[edit]

Chairman

[edit]
  • Xu Liuping (2006–2017)
  • Zhang Baolin (2017–2020)[32]
  • Zhu Huarong (2020–present)[33]

Presidents

[edit]
  • Xu Liuping (2006–2010)
  • Zhu Huarong (2010–2020)
  • Wang Jun (2020–2025)[34]

General Manager

[edit]
  • Zhao Fei (2025–present)

Brands and products

[edit]

Changan produces and markets vehicles primarily under 5 brands:[35]

  • Changan Auto for SUVs and passenger cars
    • Changan Nevo (Qiyuan) for entry premium range extended electric vehicles.
  • Deepal (Shenlan) for electric vehicles
  • Avatr for premium electric vehicles, jointly invested by Changan and CATL
  • Kaicene for the commercial vehicles, light trucks, and MPVs

Changan Auto

[edit]
Logo of Changan Auto

Changan is the main brand of China Changan Automobile Group. Its products lines cover entry-level and medium level price range passenger vehicles include cars, SUVs, and pickups.

Changan Nevo (Qiyuan)

[edit]

Changan Nevo (长安启源) is the entry level EV line under the Changan brand, launched in 2023. Models initially include the A05 compact sedan, the A06 compact sedan, and the A07 midsize sedan. The A06 is a rebadged Changan UNI-V with restyled front and rear ends.[36] The A05 is a rebadged Changan Yida with restyled front and rear ends.[37]

Deepal (Shenlan)

[edit]

Deepal (Chinese name Shenlan) is EV brand owned by Changan Automobile. The company was originally named Chongqing Changan New Energy Automobile Technology founded in 2018 and became an independent brand since 2023.

Avatr Technology

[edit]

Avatr Technology is a premium EV brand Changan joint-ventured with battery provider CATL and multiple Chinese domestic foundations, technology supported by Huawei.[38]

Changan Kaicene

[edit]

Changan Kaicene (长安凯程) is the commercial vehicle line under the Changan brand. Products mostly includes vans, light trucks, and pickups.

Current models

[edit]

Former Kaicene models

[edit]

Sales

[edit]
Changan group sales (foreign joint-venture brands excluded)[39][40][41][42][43][44][45][46]
Year Total[a] Changan[b] Changan Nevo Changan Kaicene Deepal Avatr Oshan JMH

(Landwind)

2010 1,239,990 1,047,983 - - - - - 192,007
2011 1,025,233 816,627 - - - - - 208,606
2012 1,053,645 841,137 - - - - - 212,508
2013 1,152,537 901,270 - - - - - 251,267
2014 1,363,487 1,055,630 - - - - - 307,857
2015 1,504,936 1,199,053 - - - - - 305,883
2016 1,682,741 1,304,612 - - - - - 378,129
2017 1,597,543 1,215,406 - - - - - 382,137
2018 1,270,100 729,067 - - - - 192,745 348,288
2019 1,331,802 849,552 - - - - 153,258 divested
2020 1,503,604 978,398 - - - - 113,820
2021 1,754,707 1,009,822 - - - - 194,381
2022 1,874,569 1,125,048 - - 33,354 757 222,030
2023 2,097,794 1,432,543 - - 136,912 27,589 discontinued
2024 2,226,489 1,350,784 243,894 73,606
2025 2,468,197 1,344,080 410,000 261,000 333,117 120,000

Joint ventures

[edit]

Like most major Chinese automakers, Changan partners with Western and Japanese companies to produce and sell the products of these foreign firms in China. It also partners with other companies within China to augment manufacturer capacity and share development costs.

Changan currently participates in the following joint ventures:

Changan Ford (2001–present)

[edit]

In 2001, Changan Ford was formed[47] and initially built Ford-branded passenger vehicles from complete knock down kits.[10]

Making Chinese-market versions of Ford consumer offerings,[7] its 2010 dealer network was thought to include many showrooms in second- and third-tier Chinese cities[citation needed] such as Chongqing.[48] So-called second- and third-tier cities are large and medium-sized cities not among the top four in terms of population and contribution to GDP.[49]

Changan Mazda (2012–present)

[edit]

Changan Kuayue

[edit]

Chongqing Kuayue Automobile is a co-operative venture between Changan and Chongqing Kuayue Group specializing in commercial vehicle production.[50]

The group builds commercial vehicles for Changan primarily under the Kuayue and Kaicene brands.

Kuayue commercial vehicles rebranded as Mamut in former Soviet countries.

Current models

[edit]

Former models

[edit]

Jiangling Investment and Jiangling Motor Holding

[edit]

Jiangling Motor Holding Co. Ltd. (simplified Chinese: 江西江铃控股有限公司; traditional Chinese: 江西江鈴控股有限公司; pinyin: Jiāngxī Jiānglíng Kònggǔ Yǒuxiàn Gōngsī), also known by the initialism JMH, was a joint venture established in October 2004 and controlled equally by Changan and JMCG. To create Jiangling Motor Holding Changan invested money and in exchange JMCG transferred its Jiangling Motors Corporation (JMC) equity to the venture. Jiangling Motor Holding was the largest shareholder of JMC,[53] with a 41.03% stake as of March 2018.[54] JMH also owned the Landwind marque.[53][55]

In April 2019, it was announced that JMCG and Changan planned to split JMH into two separate companies: one keeping the same name and other tentatively called Jiangling Investment. Jiangling Investment would hold the 41.03% JMC stake and some liabilities and would still be equally owned by Changan and JMCG. The new JMH would own the rest of the former JMH assets (including Landwind)[56][57] and it would issue 100% more shares to be sold to investors, leaving JMCG and Changan with a 25% stake each.[57] Jiangling Investment was formally established in May 2019, completing the split of the former JMH.[58] In June 2019, it was announced that the investor for the new JMH was the car manufacturer Aiways. Aiways acquired a 50% of the new JMH with the aim of securing production permits for new energy vehicles.[59][60]

Former

[edit]

Hafei (2009–2018)

[edit]

Hafei, officially Hafei Motor Co., Ltd. (Chinese: 哈飞汽车), is a Chinese automaker currently operating as a subsidiary of Changan Ford, and manufacturing passenger vehicles.[61][62]

In 2015, Changan announced it would discontinue all Hafei production and convert existing lines to serve Changan Ford.[63][61][62]

Oshan (2017–2024)

[edit]

Oshan (Chinese: 欧尚) was a passenger car brand under Changan Automobile. It was originally known as the Changan Commercial Vehicles, the division which focus on micro vans and light trucks. The brand was renamed to Oshan in April 2017 and began to produce passenger vehicles since.

In 2024, Changan decided to cease the operation of Oshan brand and merge the product line and sales channel into Changan brand.[64]

Changan PSA (2010–2020)

[edit]

Changan and the French car manufacturer PSA Peugeot Citroën agreed in 2010 to set up a 50/50 passenger car and light commercial vehicle-making joint venture.[65] Named CAPSA, it was the PSA Group's second joint venture company in China, after Dongfeng Peugeot-Citroën Automobile, and its first with Changan.[66] Centering on a newly built production base in Shenzhen, it was estimated that initial production capacity for the project will be 200,000 units/year.[67] Manufacturing commenced in 2014, with China specific Citroën DS models; the DS 5LS first and then the DS 6WR.[68] The venture was dissolved in 2020.

Changan Suzuki (1993–2018)

[edit]

Technical and commercial cooperation with Suzuki Motors, beginning in 1983, saw Changan assembling inexpensive commercial trucks (originally the Suzuki Carry ST90 as the Changan SC112[69]) under license into the 2000s.[70] The two companies formed Chongqing Changan Suzuki Automobile Co in 1993,[47] which built licensed versions of the Suzuki Alto, Suzuki Cultus, and more recently the Swift.

In parallel with its Suzuki joint venture, Changan also continued to build small trucks and vans for commercial use based on the 1999 Suzuki Carry license, but independently developed vehicles are quickly replacing them.[70] These small cars carry the Changan brand name although Suzuki technology is used in their design and manufacture.

On 4 September 2018, Suzuki transferred its 50 percent stake in Changan Suzuki to Changan Automobile Group, ending 25 years of joint venture. Under the plan, Changan would continue to make and sell Suzuki-branded cars in China under license.

In 2021, Changan Suzuki was renamed to Chongqing Lingyao Automobile.[71]

Production and research facilities

[edit]

Domestic

[edit]

Changan has four major production bases (in the City of Chongqing, Hebei province, Jiangsu province, and Jiangxi province),[citation needed] eleven automobile production bases, and two engine production bases in mainland China[72] for a more-current total of 21 vehicle-making bases including newer sites in Anhui province, Guangdong province, Heilongjiang province, Shandong province, and Shanxi province.[citation needed]

Anhui

[edit]

A planned 300,000 units/year capacity mini-vehicle production base in Hefei, Anhui province, should see completion in 2011.[citation needed] Production capacity figures may consider engines and vehicles as discrete.

Beijing

[edit]

An existing R&D center in Beijing[73] will soon be joined by a passenger car production base in Fangshan District, Beijing, which will become operational in 2012.[citation needed]

Chongqing

[edit]

Changan has numerous sites in the city of Chongqing. A Changan-Ford plant and another, planned Changan-Ford plant (which may produce engines[74]) are joined by a Chongqing-based R&D center[73] and an industrial park in Yubei, Chongqing.[citation needed]

Hebei

[edit]

An industrial park in Hebei province may continue to be Changan controlled.[citation needed]

Heilongjiang

[edit]

A Harbin, Heilongjiang province, R&D center, is now a Changan asset.[73] It may have been owned by Hafei prior.

Jiangsu

[edit]

A Changan-Ford plant and an industrial park[citation needed] in Nanjing, Jiangsu province, comprise Changan operations in this province.

Jiangxi

[edit]

A planned Changan commercial vehicle production base in Nanchang, capital of Jiangxi province, will produce JMC and Ford-branded vehicles[74] and join an R&D center[73] as a second facility in this province. The latter facility may be a former Changhe asset.

Shanghai

[edit]

Changan has an R&D center in this coastal city.[73]

International (Overseas)

[edit]

The company maintains four factories in international markets and several overseas R&D centers. Changan had an assembly plant in Poteau, Oklahoma, piecing together products sold under the Tiger Truck brand from 2007 to 2010.[75] The Changan CS35 is built in Lipetsk region of Russia since 2016.[76] Also Changan vans and pickup trucks were assembled at Ganja Auto Plant in Ganja city, Azerbaijan in 2005.

Pakistan

[edit]

Changan has built a production facility in Karachi, Pakistan. It is a joint venture with Master Motors with an investment of US$100 million. This plant makes right hand drive passenger vehicles for Pakistan as well other right hand drive markets. The first "Made in Pakistan" unit of Changan rolled out on 2 May 2019. With a manufacturing capacity of 30,000 cars per year, this facility is Changan's first to produce right hand drive cars.[77]

R&D centers

[edit]

Changan has over 7,000 engineers and researcher working in R&D facilities in Chongqing, Beijing, Shanghai and Harbin,[78] Turin, Italy,[73] and Yokohama, Japan.[73] It set up two more in 2011. These are located in Birmingham (originally was set up in Nottingham), United Kingdom, and Detroit, United States.[79] The Detroit center opened in early 2011, and its office was moved to Plymouth 2015.[80][81]

Etymology

[edit]

The name "Changan" originated from "Chongqing Changan Arsenal", the predecessor entity in defense industry in 1950s, which literally means "Long Lasting Peace".[8] Changan is also the name ancient Chinese capital of Tang Dynasty.

It was first used in its first light commercial truck, the Changan-brand SC112, which was based on the Suzuki Carry mini-truck introduced from Japan in the 1980s.[8]

See also

[edit]

Notes

[edit]

References

[edit]
[edit]
Revisions and contributorsEdit on WikipediaRead on Wikipedia
from Grokipedia

Chongqing Changan Automobile Co., Ltd., commonly known as Changan Automobile, is a major state-owned Chinese automobile manufacturer headquartered in , specializing in the research, development, production, and sale of passenger vehicles, commercial vehicles, and new energy vehicles (). As one of China's four largest automobile groups by production capacity and sales, it operates self-developed brands such as UNI, NEVO, DEEPAL, and AVATR, while maintaining joint ventures with Ford and for additional models. Tracing its automotive manufacturing heritage to the 1980s following origins as a military arsenal in 1862, Changan has expanded into intelligent mobility technologies with global R&D centers in six countries and manufacturing bases across 14 locations.
In recent years, Changan has achieved significant sales growth, delivering 2.684 million vehicles in , a 34.2% increase from the previous year, driven by NEV adoption and exports to over 100 countries. The company, now integrated into the newly formed Changan Automobile Group established in July 2025, employs over 110,000 people and targets annual sales of 3 million units in 2025, including 1 million , as part of a emphasizing technologies and overseas expansion. Cumulative sales of its Chinese brands reached 26.33 million units by April , underscoring its scale in the domestic market.

History

Founding and Early Development (1862–1990s)

Changan Automobile's origins trace to the Foreign Gun Bureau, established in 1862 by official to import and produce modern Western weaponry amid efforts to modernize China's military during the . The bureau initially focused on rifles and ammunition, later relocating to and in the late 19th century, where it was renamed the Jialing Machinery Manufacturing Bureau and contributed arms production during conflicts with (1884–1885) and (1894–1895). In 1937, amid the Second Sino-Japanese War, the facility was evacuated to Chongqing to evade Japanese forces, operating as the 21st Arsenal under Nationalist control. Following the Communist victory in 1949, it was reorganized as the 456th Plant under the Ministry of Military Industry, prioritizing defense production for the People's Liberation Army. The transition to automotive manufacturing began in 1957, when the renamed Changan Machinery Manufacturing Plant initiated production of the Changjiang 46 off-road vehicle, a jeep assembled from imported components, with approximately 1,400 units built by 1963. Passenger car efforts shifted to Beijing in 1963, prompting Changan to refocus on arms, but by the late 1950s, predecessor entities like Chang'an Factory had assembled jeeps under the Yangtze River brand, establishing early vehicular capabilities. In the early 1980s, economic reforms enabled a pivot to civilian production, including a licensing agreement with for light vehicles and a merger with the Jiangling Machinery Manufacturing Plant. By the late , trial production of mini-trucks and vans commenced, with the Changan Carry entering sales around 1989, alongside pint-sized commercial vehicles that supported rural and urban logistics needs. These developments marked 's foundational shift from military hardware to automotive assembly, leveraging state directives and foreign technology transfers amid China's opening economy.

Expansion Through Joint Ventures (2000s)

In 2001, Changan Automobile formed a 50/50 with , marking a significant step in its expansion strategy to access advanced foreign technology and boost passenger car production. Announced on April 25, 2001, the partnership involved Ford's $49 million investment for its stake, with initial annual capacity set at 50,000 vehicles on a new at Changan's facility. This venture, known as , focused on manufacturing compact models tailored for the Chinese market, enabling Changan to scale beyond its earlier mini-vehicle output from the pre-existing Changan-Suzuki collaboration. Mid-decade, the joint venture expanded to include , following Chinese government approval in 2005 for a new assembly plant in spanning 190,000 square meters. This led to the production of models, such as the starting in February 2006 at the plant, diversifying the lineup and integrating Japanese engineering expertise. Concurrently, in September 2005, the partners established Engine Co., Ltd., with holding 50% and Ford and each 25%, to localize engine production and reduce import dependency. These developments enhanced Changan's manufacturing capabilities, with the combined ventures contributing to annual production surpassing earlier limits by the mid-2000s. The joint ventures facilitated , including assembly processes and quality controls, which propelled 's growth amid China's burgeoning auto market. By leveraging Ford's and Mazda's platforms, Changan increased its market presence in sedans and crossovers, while maintaining state oversight to align with national industrialization goals. This era's expansions laid groundwork for Changan to evolve from a regional assembler to a national player, though reliance on foreign partners highlighted ongoing challenges in independent R&D.

Shift to New Energy Vehicles and Intelligence (2010s–Present)

In 2017, Changan Automobile announced its "Shangri-La Plan," a comprehensive new energy vehicle (NEV) strategy aimed at phasing out sales of traditional vehicles by 2025, supported by an investment of 100 billion yuan (approximately 15 billion USD) in technologies and . This initiative marked a pivot from conventional automotive production toward battery electric vehicles (BEVs), plug-in hybrids, and related supply chains, driven by China's national push for NEV adoption amid environmental regulations and subsidies. By 2023, Changan had introduced dedicated NEV brands including Deepal (for premium intelligent EVs), Avatr (a Huawei-partnered venture focusing on advanced connectivity), and Nevo (Qiyuan, targeting affordable electrified models), launching five new models such as the Nevo A07 sedan, Nevo A05 coupe, Nevo Q05 , Deepal S07 crossover, and luxury sedan to capture mid-to-high-end market segments. Changan's NEV sales accelerated significantly post-2020, reflecting successful scaling of production and market penetration. In 2023, total group sales exceeded 2.55 million units, with NEVs contributing a growing share through expanded model lineups and battery technology integrations. By November 2024, monthly NEV sales surpassed 100,000 units, culminating in annual sales over 2.68 million vehicles, while half-year 2025 figures showed a 48.8% year-over-year increase in NEV volumes amid intensified domestic competition. Overseas expansion complemented this, with a 2023 investment of 2 billion yuan (285 million USD) in a Thailand facility capable of producing 100,000 EVs annually, targeting exports to Europe starting December 2025. Parallel to electrification, Changan advanced vehicle intelligence through heavy R&D commitments, totaling 114.8 billion yuan invested by 2024 in autonomous driving, advanced driver-assistance systems (ADAS), and connected architectures. A key milestone was securing 17 Level 3 autonomous driving test licenses after five years of development, emphasizing safety and reliability in urban and highway scenarios. Collaborations bolstered these efforts, notably a December 2023 joint venture with to integrate core smart car technologies, enhancing over-the-air updates, , and AI-driven features in models like the Avatr series. At the 2024 Auto and 2025 IAA Mobility events, Changan demonstrated prototypes with extended-range capabilities and intelligent cockpits, aligning with projections for to exceed 60% of sales by the late under the "Vast Ocean Plan" strategy.

Corporate Structure and Ownership

State Ownership and Governance

China Changan Automobile Group, the parent entity of Changan Automobile, operates as a central directly supervised by the State-owned Assets Supervision and Administration Commission (SASAC) of the State Council. This structure positions it alongside other strategic conglomerates like and under central oversight. In July 2025, the group underwent a significant restructuring, separating its automotive operations from the broader —a key supplier to the —and establishing it as an independent entity with registered capital of 20 billion yuan (approximately 2.75 billion USD). This move elevated Changan to formal central SOE status, the third such automaker under SASAC, enhancing its access to state resources for technological advancement and global expansion. The listed subsidiary, Chongqing Changan Automobile Co., Ltd., reflects state dominance in ownership, with the parent group holding a combined direct and indirect stake of 35.04% as of mid-2025, making it the controlling shareholder. Other significant holders include entities like South Industry Assets Management Company Limited at 4.60%, but ultimate control resides with state mechanisms. This ownership aligns with broader Chinese policy to consolidate automotive capabilities under central authority, prioritizing national strategic goals over pure market dynamics. The group oversees 117 subsidiaries, manages assets totaling 308.7 billion yuan, and employs around 110,000 personnel, underscoring its scale within the state apparatus. Governance integrates standard corporate structures with mandatory leadership, as required for central SOEs. Zhu Huarong serves as chairman of the board, legal representative, and of the Party committee, ensuring alignment between operational decisions and state directives. The board and prioritize compliance, transparency, and ESG frameworks, though key strategic choices—such as R&D investments and international partnerships—are influenced by SASAC guidelines and national industrial policies. This dual model supports Changan's focus on software-defined vehicles and new energy technologies while maintaining accountability to central oversight.

Leadership and Organizational Changes

In July 2025, Changan Automobile Group was officially established as an independent central , marking a significant organizational restructuring by carving out the automobile business from its parent, Corporation (CSGC). The new entity, registered in with registered capital of 20 billion yuan (approximately 2.75 billion USD), encompasses 117 subsidiaries and emphasizes development in smart connected vehicles, , flying cars, and embodied intelligence, aiming to enhance autonomy and global competitiveness. This separation, approved by the State Council in June 2025, positions as China's third central SOE automaker after FAW and Dongfeng, with the group holding a 35.04% stake in core brand Chongqing Changan Automobile Co., Ltd. Zhu Huarong, former president and chairman of Chongqing Changan Automobile, was designated as the legal representative of the restructured group, underscoring continuity in top leadership amid the transition. In August 2025, Zhu, alongside General Manager Zhao Fei and 17 other executives from both the group and Changan, committed to increasing their shareholdings by approximately 5.7 million yuan (about 793,000 USD) through call auctions, signaling confidence in the post-restructuring strategy. At the brand level, appointed Jiang Hairong, previously at Honor in , as CEO of its new energy vehicle sub-brand Deepal in September 2025, aiming to bolster marketing and exploration in the competitive NEV segment. This move reflects ongoing adjustments to align leadership with the group's pivot toward intelligent and electrified mobility, though broader executive reshuffles across the industry, including at , have been noted without detailed prior disclosures on internal promotions or departures.

Technology and Research & Development

Key Technological Strategies and Investments

Changan Automobile has maintained a leading position in (R&D) investment among Chinese automakers, achieving the highest annual R&D spending for 14 consecutive years through 2023, with expenditures surpassing 7 billion yuan (approximately 1 billion USD) annually. The company has cumulatively invested over 114.8 billion yuan in R&D as of 2025, supporting an international team of 18,000 personnel, including 5,000 specialized in software and . In October 2024, Changan announced a commitment to invest 250 billion yuan (about 35 billion USD) in smart car technologies through 2029, alongside expanding its technology innovation team by 10,000 members to advance , , and connectivity. This builds on broader decade-long plans exceeding 200 billion yuan for future automotive technologies, emphasizing breakthroughs in , new energy solutions, and . In December 2024, the company raised up to 6 billion yuan via of A-shares specifically to fund new energy vehicle (NEV) development, targeting enhanced battery integration and efficiency. Core strategies include the Plan 2.0, focused on intelligent driving capabilities such as Level 3 , evidenced by securing 17 L3 autonomous driving test licenses by December 2023 and achieving full vehicle connectivity across new models since 2020 under its predecessor plan. Complementing this, the Shangri-La Mission prioritizes NEV advancements, incorporating innovations like the BlueCore 3.0 with range-extender technology and dual-motor electric drives for hybrid and pure-electric configurations. Forward-looking elements encompass flying cars slated for test flights in 2025 and commercial launch by 2026, alongside humanoid by 2027, positioning toward smart, low-carbon mobility transformation. These investments align with a integrating distributed drive systems, , and adaptive controls to support global competitiveness in electrified and autonomous vehicles.

Innovations in NEVs and Intelligent Systems

Changan Automobile pioneered mass production of hybrid vehicles in China and introduced its first all-electric model, the Eado EV, marking early entry into NEV development. The company has since expanded through dedicated NEV brands, including Deepal, established in 2022 to target mainstream electric mobility with models emphasizing efficient battery systems and extended range capabilities. Avatr, a premium intelligent EV brand formed via collaboration with Huawei and CATL, integrates advanced cell-to-body (CTB) battery technology and high-voltage platforms exceeding 900 volts for faster charging and improved energy density in vehicles like the Avatr 11 and 12. Nevo series introduces range-extended electric vehicles (REEVs) tailored for overseas markets, combining internal combustion engines with electric motors for hybrid efficiency. In November 2024, achieved a milestone with monthly NEV sales surpassing 100,000 units, reflecting scaled production and market adoption under its Vast Ocean Plan, which targets 3 million annual NEV sales by 2030. The firm established its first international NEV manufacturing base in in 2023, enabling localized production of models such as the Deepal S07 and to support export growth. Changan's intelligent systems advancements center on the Plan 2.0, unveiled in February 2025, which deploys AI-driven architectures for accessible Level 3 (L3) autonomous driving across mass-market vehicles. The Tops AD system, built on a central architecture, enables end-to-end processing for perception, prediction, and control, with partnerships like enhancing software integration. In June 2024, became China's first pilot for L3 intelligent driving certification, featuring dynamic task execution and human-machine interaction safeguards. Self-developed solutions debuted in the Nevo E07 in October 2024, incorporating multi-modal AI for environmental adaptation, while select models adopt Huawei's Qiankun ADS 3.0 for advanced driver assistance, including night-vision enhancements and interactive . By December 2021, 17 L3 test licenses facilitated extensive road validation, underscoring iterative progress toward deployment. These systems prioritize causal and redundancy to mitigate failure modes, though real-world efficacy depends on regulatory approval and empirical data beyond manufacturer testing.

Global R&D Network

Changan Automobile maintains a global R&D network spanning six countries and ten locations, incorporating over 18,000 engineers and technicians from 31 nations to support advancements in vehicle intelligence, new energy technologies, and core automotive systems. This structure emphasizes collaborative development, with overseas centers focusing on localized , , and integration of international expertise into Changan's core platforms. The network's overseas facilities include the first established center in , , opened in 2005, which targets European design standards and advanced engineering. This was followed by a , , center shortly thereafter, leveraging Japanese precision manufacturing and hybrid technology insights. In June 2010, a Birmingham, , facility was launched to address European market dynamics and safety regulations. The US R&D Center in —the first such outpost by a Chinese OEM in the state—concentrates on advanced driver assistance systems (ADAS) and safety innovations to enhance autonomous driving capabilities. A presence in further supports and research, aligning with stringent emissions standards. Domestic hubs in , , , and other Chinese sites serve as the network's backbone, coordinating with international outposts for global synchronization. This distributed model has enabled Changan to invest heavily in new energy vehicles (NEVs) and , with the overseas centers contributing to adaptations for diverse markets while mitigating risks from domestic-centric development. As of 2023, the framework supports Changan's "Vast Ocean Plan" for overseas expansion, integrating local talent and partnerships to accelerate .

Brands and Products

Changan Auto and Mainstream Models

Changan Auto represents the core brand of Group for mainstream passenger vehicles, focusing on sedans and SUVs with internal combustion engines and mild-hybrid options targeted at mass-market consumers in and emerging export markets. This lineup emphasizes affordability, reliability, and incremental technological enhancements over the group's specialized new energy vehicle (NEV) brands. The UNI series, launched in late 2020, positions Changan Auto in the premium mainstream segment with sporty aesthetics and digital cockpit features. The UNI-V, a fastback sedan introduced in September 2021, employs a 2.0-liter turbocharged engine delivering 171 kW of power and 360 Nm of torque, paired with an 8-speed automatic transmission, achieving 0-100 km/h acceleration in approximately 7.4 seconds. The UNI-T, a compact crossover SUV debuted in March 2021, utilizes a 1.5-liter turbo engine producing 132 kW and 300 Nm, with a 2710 mm wheelbase supporting urban maneuverability and optional all-wheel drive in select trims. These models incorporate Changan's Blue Whale powertrain platform for improved efficiency, with the UNI series contributing to the brand's emphasis on youthful, tech-savvy buyers. Complementing the UNI lineup, the CS series comprises family-oriented SUVs that dominate Changan Auto's domestic sales. The CS75 Plus, a midsize updated in its fourth generation by 2024, features the 2.0T engine with 171 kW output and an 8-speed transmission, offering seating for five and advanced driver-assistance systems (ADAS) as standard in higher trims. Sales of the CS75 reached 37,881 units in January 2025, underscoring its market leadership among Chinese-brand SUVs. The CS55 Plus, a compact , has accumulated over 1.01 million global sales by late 2024, driven by its 1.5T engine variants and competitive pricing starting around 80,000 yuan in . Smaller models like the CS35 Plus target entry-level buyers with 1.4T powertrains and urban-focused dimensions. Mainstream sedans under Changan Auto, such as the Raeton Plus (formerly Raeton), provide executive-oriented options with 2.0T engines and luxury interiors, though they trail SUVs in volume. Overall, the Changan Auto portfolio prioritizes high-volume production at domestic facilities, with exports growing in and the , supported by adaptations for local emissions standards. In 2024, mainstream models accounted for the majority of Changan's non-NEV sales, reflecting a strategic balance between traditional powertrains and gradual electrification transitions.

NEV-Focused Brands (Deepal, Avatr, Qiyuan)

Changan Automobile operates three dedicated sub-brands for new energy vehicles—Deepal, Avatr, and Qiyuan (internationally branded as Nevo)—each designed to address specific segments in the electric and hybrid markets through specialized development of battery, , and intelligent driving technologies. These brands emerged as part of Changan's strategic pivot toward in the early 2020s, leveraging the parent company's R&D resources to compete in China's rapidly expanding electrified vehicle sector, where NEV sales reached over 9 million units domestically in 2024. Deepal targets mid-market consumers with performance-oriented pure EVs, Avatr focuses on premium intelligent EVs via collaborations with tech firms, and Qiyuan/Nevo emphasizes affordable extended-range hybrids for mass adoption. Deepal, launched in 2022 as Changan's core EV brand, prioritizes scalable electric platforms and user-centric intelligence to deliver vehicles blending long range, fast charging, and semi-autonomous features. Its lineup includes the S07 mid-size , introduced in 2023 with options for rear-wheel-drive and all-wheel-drive configurations, achieving up to 720 km CLTC range on a ternary lithium battery and integrating Changan's proprietary EPA1 architecture for structural efficiency. Other models encompass the L07 , S05 compact , S09 large with ultra-long-range variants exceeding 1,300 km in hybrid mode, and the off-road-oriented G318 pickup unveiled in 2024. Deepal has driven Changan's NEV exports, with the S07 entering markets like in 2025 amid over 3,000 orders in initial Southeast Asian launches, and plans for broader European penetration including the S05 by late 2025. Avatr, established in 2018 as a high-end joint venture under Avatr Technology with holding majority control (approximately 41%), partners with for battery systems and for HarmonyOS-based cockpit and assisted driving hardware to create luxury EVs emphasizing computational power and seamless connectivity. The brand's vehicles, built on dedicated electric architectures, feature models like the sedan and SUV debuted in 2022 with 90 kWh+ batteries enabling 700+ km ranges, followed by the 2024 Avatr 07 coupe SUV and Avatr 06 sedan, both incorporating Huawei's ADS 2.0 for advanced perception and no-map navigation. Avatr's focus on "high intelligence" includes zero-gravity seating and 1,000 computing chips, positioning it against premium rivals, though production remains concentrated in with exports limited as of 2025. Qiyuan, rebranded internationally as Nevo and introduced around , serves as Changan's entry-to-mid-tier NEV marque, specializing in range-extended electric vehicles (EREVs) that combine small batteries with generators for total ranges over 1,200 km to mitigate charging infrastructure gaps in emerging markets. Built on modular platforms like EPA1, its offerings include the A05 compact sedan starting at approximately 65,000 yuan (about $9,100 USD) with 145 kW motors and REEV setups, the A07 executive sedan featuring 79.97 kWh ternary batteries for up to 710 km pure EV range, and variants such as the Q05 and Q07, both 5-door 5-seaters with 1,215 km combined range and 180 km/h top speeds. These models emphasize practicality, with features like 656 L trunks in the upcoming A06 and urban-friendly dimensions, supporting Changan's volume NEV strategy amid domestic hybrid demand surges.

Commercial and Legacy Brands (Kaicene)


Kaicene, also stylized as Kaicheng, serves as Changan Automobile's specialized brand for commercial vehicles, including pickups, light trucks, vans, and multi-purpose vehicles tailored for logistics and utility applications. The brand was introduced in 2016, with the F30 pickup marking its debut model to address demands in China's growing commercial sector. Positioned as a pillar of Changan's commercial operations, Kaicene emphasizes durable, efficient designs derived from the parent company's engineering expertise in mass production and vehicle platforms.
Prominent models under Kaicene include the F70 mid-size pickup, co-developed with Groupe PSA and launched in October 2019, featuring a ladder-frame chassis, diesel engine options, and payload capacities suited for rugged terrains. This model, exported under variants like Hunter and F70, incorporates front-wheel-drive architecture adapted for commercial use, with updates including facelifts for enhanced styling and powertrains up to 2.0-liter turbocharged units delivering around 161 horsepower. Additional lineup components encompass the Star series cargo vans and trucks for urban delivery, the Era Star II panel van with 1.2-liter engines producing 72 kW, and micro-trucks like the Honor S cargo variant for compact logistics. Emerging electric offerings, such as the V919 battery-electric van, align with Kaicene's shift toward new energy vehicles (NEVs), supporting China's push for electrified commercial fleets. In November 2024, Kaicene announced a refreshed brand strategy focused on "Digital NEV Commercial Vehicles Technology," integrating and to enhance efficiency in low-speed, high-utilization scenarios like last-mile delivery. Sales performance for Kaicene-aligned pickups, rebranded as Pickup for global markets, demonstrated robust growth, with 2,811 units sold worldwide in 2024—a 169.5% increase year-over-year—reflecting demand in export regions amid recovering supply chains. In select international markets, such as the , 's existing commercial vehicles were rebadged under Kaicene starting July 2020 to streamline branding for local distributors. Kaicene's legacy ties into Changan's broader commercial heritage, evolving from earlier production of utilitarian vehicles since the company's expansion into light commercials in the . Parallel to Kaicene, the Kuayue brand handles similar heavy-duty vans and trucks, with some models rebranded as Mamut for export to regions like the former Soviet states, indicating Changan's strategy of segmented branding to preserve distinct market identities while consolidating technology sharing across lines. This dual-brand approach allows Kaicene to prioritize passenger-oriented commercials and , while Kuayue focuses on pure freight, ensuring comprehensive coverage without diluting specialized engineering focuses.

Joint Ventures and Partnerships

Active Joint Ventures (Ford, Mazda)

Changan Ford Automobile Co., Ltd. operates as a 50/50 joint venture between Changan Automobile Group and Ford Motor Company, initially formed in 2001 to manufacture and sell Ford-brand passenger vehicles in China. Following Ford's partial divestment from Mazda in 2012, the original Changan Ford Mazda entity was restructured, with Changan Ford assuming responsibility for all Ford-related production and sales activities. The venture maintains assembly facilities in Chongqing, including Plant 1 and Plant 2 (formerly shared with Mazda operations), and a dedicated plant in Hangzhou focused on mid-to-high-end models since 2015. These sites produce vehicles such as the Ford Focus, Mondeo, Edge, and Taurus, with the Hangzhou facility handling six models emphasizing premium sedans and SUVs. In June 2024, Changan Ford collaborated with Ford's Mexico operations to optimize supply chains and increase output capacity amid global demand fluctuations. The joint venture remains active as of 2025, supporting Changan's broader strategy to leverage foreign partnerships for technology transfer while contributing to Ford's China market presence, though sales have faced challenges from rising domestic competition in new energy vehicles. Changan Mazda Automobile Co., Ltd. functions as a separate 50/50 between Changan Automobile and Motor Corporation, established in 2012 post the split from the combined Changan Ford Mazda operation and headquartered in . It oversees vehicle assembly, primarily at the plant, which produces models including the CX-5 with domestically sourced or imported engines. In 2019, acquired Ford's stake in the shared engine facility, renaming it Engine Co., Ltd., which continues to manufacture Skyactiv-G engines (1.5L, 2.0L, and 2.5L variants) for vehicles starting from April 2007 production timelines. The venture expanded in 2023 by acquiring full ownership of the former FAW Mazda operations, consolidating 's footprint under Changan's majority influence. Recent developments emphasize , with the launch of the EZ-60 electric sedan (also marketed as Mazda6e) in September 2025 for domestic and markets, positioning the partnership as an EV production hub. In May 2025, signed a memorandum with to integrate smart technology into new energy vehicles, enhancing battery and integration. Despite restructuring efforts, including a 2021 adjustment reducing 's stake to 47.5% in a broader entity with FAW elements, the core JV sustains operations focused on compact and mid-size models amid 's push for -oriented EV growth from .

Former Partnerships and Exits

Changan Automobile's joint venture with Motor Corporation, established in 1993 as Chongqing Changan Automobile Co., Ltd., was dissolved in 2018 after transferred its 50 percent stake to . The , which focused on producing compact , faced declining amid shifting Chinese preferences toward SUVs and larger models, prompting 's full exit from vehicle manufacturing in . The transfer was announced on September 4, 2018, and completed by the end of the year, though retained licensing rights to continue producing and selling select -branded models. In parallel, Changan's 50-50 with Groupe PSA (now part of ), formed to manufacture and distribute luxury vehicles in , ended in 2020 following the sale of both partners' stakes to the Baoneng Group. Established around 2013, the venture accumulated losses exceeding CNY 4.9 billion (approximately USD 696 million) over six years due to weak market performance of the DS brand in a competitive luxury segment. PSA initiated the exit in late 2019, citing insufficient sales, while Changan agreed to divest to refocus resources on core operations. This marked PSA's second unsuccessful venture dissolution, after issues with other partnerships. These exits reflect broader challenges in China's automotive market, where foreign partners struggled with adapting to rapid shifts toward , SUVs, and domestic brands, leading to prioritize independent development and active alliances like those with Ford and .

Strategic Collaborations (e.g., )

Automobile has pursued strategic collaborations with leading technology providers to integrate advanced into its vehicles, with Technologies Co., Ltd. serving as a primary partner since 2014. On November 10, 2014, the two companies signed a strategic cooperation agreement aimed at leveraging 's expertise in infrastructure for automotive applications, including connectivity and enhancements. This partnership expanded significantly through Huawei's role in Avatr Technology, Changan's premium electric vehicle brand co-established with in 2018, where Huawei provides core technologies such as the Huawei Inside (HI) platform for advanced driver assistance systems (ADAS), , and communication. Avatr models, including the launched in 2022, incorporate Huawei's for seamless smart cabin experiences and Level 2+ autonomous driving capabilities. In August 2024, Avatr acquired a 10% stake in Huawei's Yinwang Intelligence, a smart driving entity, for approximately 11.5 billion CNY (about 1.6 billion USD) to accelerate integration of Huawei's perception hardware and perception fusion algorithms. Further solidifying ties, on November 25, 2023, and formalized a focused on intelligent connected vehicle solutions, with transferring its automotive smart driving business unit into the entity and as a key investor; the venture, tentatively named Newcool, aims to develop next-generation systems for mass-market adoption. In February 2025, Changan's Deepal brand extended this collaboration by agreeing to co-develop intelligent driving technologies, including end-to-end models for enhanced autonomy and vehicle intelligence. These partnerships have enabled to deploy Huawei's Qiankun smart driving architecture across models like Deepal S07 and , supporting features such as urban intelligent driving without high-definition maps, as demonstrated in over-the-air updates rolled out in 2024. Beyond Huawei, Changan has formed complementary strategic ties, such as with for battery innovations integral to Avatr and a 2023 memorandum with for upstream supply and processing to secure new materials.

Production Facilities

Domestic Manufacturing Bases

Changan Automobile maintains its primary domestic manufacturing operations in , its headquarters city, where multiple facilities support the bulk of its assembly and component production. Key plants in include the Yubei Factory, No. 1 Liangjiang Factory, and No. 2 Liangjiang Factory, which handle production of passenger , new energy models, and related parts. These sites trace their automotive output origins to 1984, when Changan began manufacturing mini cars, marking the start of its scaled production. Subsidiary operations extend to Hefei Changan Automobile Co., Ltd. in Province, established on May 11, 2007, with registered capital of 2.275 billion RMB. This facility focuses on passenger cars, light-duty trucks, new energy vehicles, and auto parts, contributing to 's diversification into electric and hybrid technologies. Overall, operates 12 manufacturing bases across , enabling an integrated for its mainstream, NEV, and lines, though specific capacity figures for individual domestic sites remain proprietary or aggregated in company reports. These bases prioritize high-volume output, with Chongqing facilities leveraging local logistics advantages in the Yangtze River economic zone to minimize transport costs and support just-in-time assembly.

Overseas Production and Expansion Plans

Changan Automobile's overseas production is encapsulated in its "Vast Ocean Plan," which emphasizes localized manufacturing to support global across five key regions, with a focus on new energy vehicles (). The plan includes accelerating the construction of a "152" global layout comprising one domestic base in , five regional markets, and 20 overseas plants, backed by over $10 billion in investments to achieve 5 million annual global vehicle sales by 2030. By mid-2025, had established nine overseas factories, primarily oriented toward assembly and NEV production to reduce costs and comply with local tariffs. The company's first fully operational international NEV manufacturing base opened in , , on May 16, 2025, with initial production capacity of 100,000 vehicles annually, planned to expand to 200,000 in a second phase. This facility marks Changan's shift from export reliance to localized output, targeting Southeast Asia's growing demand for affordable EVs and hybrids. Expansion plans extend to , where Changan intends to build a dedicated to serve 10 markets entering in 2025 with electric models, as stated by a company executive in July 2025. While specific sites remain undisclosed, this initiative aligns with broader goals of establishing production in high-potential regions like and the , where brand launches have occurred in and , though full-scale factories there are not yet operational. These efforts prioritize regions with favorable policies for Chinese automakers, amid challenges like trade barriers in mature markets.

Sales and Market Performance

Changan Automobile's domestic sales in demonstrated robust expansion from to 2023, fueled by diversified product offerings including SUVs under the UNI and CS series, as well as initial NEV penetration via brands like Deepal. Sales volumes rose from 861,750 units in to 998,836 units in , reflecting a 15.91% year-over-year increase amid post-pandemic recovery and domestic demand for affordable passenger vehicles. By 2022, volumes reached 1,083,758 units, up 8.50% year-over-year, supported by enhanced production capacity and model refreshes. In 2023, domestic sales approximated 2.32 million units, derived from total group sales exceeding 2.55 million vehicles minus 230,000 overseas exports, marking a significant leap driven by NEV contributions of 470,000 units and strong performance from self-owned brands. This period highlighted Changan's shift toward higher-margin segments, with passenger vehicles comprising the bulk. However, saw domestic sales stabilize at around 2.20 million units, based on total sales of 2.683 million units offset by exports surpassing 500,000 units, amid heightened competition and price wars in the NEV market. Early 2025 data indicates renewed momentum, with year-to-date sales through September reaching 1,310,650 units, a 9.71% year-over-year rise, including September's 170,991 units. played a pivotal role, aligning with broader market trends where domestic brands captured greater share in the premium and electric segments. has targeted 3 million total vehicles for 2025, with domestic volumes expected to dominate and NEV sales aiming for 1 million units, underscoring strategic emphasis on and intelligent vehicles to counter market saturation.
YearApproximate Domestic Sales (units)Key Notes
2020861,750Post-pandemic rebound in passenger vehicles.
2021998,83615.91% growth; SUV demand surge.
20221,083,758Continued expansion in self-owned brands.
20232,320,000NEVs at 470,000 units; peak growth phase.
20242,200,000Stabilization amid NEV competition.
2025 (YTD Sep)1,310,650+9.71% YoY; on track for annual target.

Export Growth and International Markets

Changan Automobile's export volumes have grown substantially in recent years, driven by competitive pricing, diverse model offerings, and strategic adaptations for international demand. In , the company recorded overseas sales of 536,196 units, a 49.6% increase from 2023, securing its position among 's top three auto exporters by volume. This growth reflects broader trends in Chinese vehicle , which rose 19.3% to 5.86 million units overall in , though Changan outperformed many peers through targeted . The company's products are distributed across more than 100 countries and regions, with a primary focus on emerging markets in , which accounted for approximately 52% of its export sales in recent periods. Key destinations include , the , , and , where models like the Changan Hunter pickup and CS55 crossover have gained traction for their affordability and utility. In right-hand-drive markets such as , , the , and , Changan has adapted vehicles to meet local specifications, facilitating entry into these segments. Expansion into began accelerating in 2025, with plans to introduce electric vehicles like the Deepal S05 in 10 countries, supported by distributor agreements in , , and . To sustain this momentum, unveiled its Vast Ocean Plan in 2025, outlining investments exceeding $15 billion by 2030 to achieve annual international sales of 1.5 million units and establish localized operations in five key overseas regions. This includes constructing up to 20 overseas assembly plants, with nine operational by mid-2025, such as the first new energy vehicle facility in , , and others in , , , and . These initiatives aim to reduce costs, comply with local regulations, and build presence through knock-down kits and joint ventures, though challenges like tariffs and quality perceptions in developed markets persist.

Financial Metrics and Profitability

Chongqing Changan Automobile Company Limited reported total revenue of 159.73 billion Chinese yuan (CNY) for the full year , marking a 5.58% increase from 151.30 billion CNY in 2023. This growth was driven by expanded sales of new energy vehicles (NEVs) and traditional models, though it was tempered by intense market competition and price pressures in China's automotive sector. Net profit attributable to shareholders fell sharply to 7.32 billion CNY in 2024, a 35% decline from the prior year, reflecting higher operating costs, increased R&D investments in , and margin compression amid domestic price wars. The company's gross contracted to 14.9% in 2024 from 17.1% in 2023, underscoring challenges in cost control despite revenue expansion. Net stood at approximately 4.6% for the ending 2024, down from higher levels in previous years. Key profitability ratios highlight the strain: (ROE) diminished amid the profit drop, while operating margins hovered around 4.1% on a trailing basis, indicative of subdued efficiency in a capital-intensive industry. Cash flow from operations remained positive but was pressured by elevated capital expenditures on production capacity and technology upgrades.
Metric2023 Value2024 ValueChange
(bn CNY)151.30159.73+5.58%
Net Profit (bn CNY)11.267.32-35%
Gross Margin (%)17.114.9-13.0 pp
Net Margin (%)~7.4~4.6-2.8 pp

Controversies and Criticisms

Quality, Reliability, and Product Issues

Changan Automobile has demonstrated improvements in initial vehicle quality among Chinese domestic brands, ranking first in the 2021 New Vehicle Initial Quality Study (IQS) for Chinese marques, with fewer reported problems per 100 vehicles (PP100) compared to peers like and . In the 2023 Vehicle Dependability Study (VDS), while industry-wide malfunction issues rose to 106 PP100 from 102 the prior year, Changan's performance aligned with domestic averages without standout segment leadership. Its joint venture, , scored 223 PP100 in the 2025 IQS, placing tenth among mass-market brands—above the segment average but indicative of persistent challenges in and inoperability relative to international benchmarks. Product issues have included fuel system defects, as seen in the 2013 recall of CS35 SUVs where owners reported fuel contamination with , prompting a voluntary affecting thousands of units. More recent customer complaints highlight mechanical unreliability in export markets, such as broken interior door handles, malfunctioning fuel gauges stuck on full, non-functional switches, and degraded seatbelt tension in models like the Uni-K. Paint quality issues have also surfaced in user reports from regions like the , though mechanical durability has held up in some long-term ownership accounts exceeding three years without major failures. Reliability perceptions remain mixed, with from owners praising models like the CS35 Plus for minimal issues post-service milestones, yet broader critiques point to after-sales service shortcomings, including fuel consumption discrepancies and delayed resolutions in markets like . Sales controversies, such as allegations of for the Uni-K leading to owner backlash and , have compounded quality concerns by eroding trust in product claims. Safety ratings vary; while some models like the Qiyuan A05 scored lowest among tested Chinese vehicles in 2024 C-IASI crash evaluations, others incorporate advanced driver aids, though overall scores trail global leaders. Changan's recall management has earned recognition, including a 2025 award for innovation in safety systems since implementing executive-led mechanisms in 2014, yet critics note that some domestic brands, including potentially Changan, employ over-the-air (OTA) updates to address defects without formal , potentially underreporting issues. These practices reflect ongoing efforts to enhance reliability amid rapid scaling, but empirical data underscores that Changan vehicles still experience higher problem rates than established foreign competitors in dependability metrics.

Business Practices and Regulatory Fines

In 2019, Automobile Co., the between Changan Automobile and Ford Motor Co., was fined 162.8 million yuan (approximately $23.6 million) by China's for violating anti-monopoly laws through practices. The penalty, equivalent to 4% of the venture's annual sales revenue in municipality, stemmed from restrictions imposed on dealers preventing them from setting independent prices for vehicles. cooperated with investigators and implemented corrective measures, while Ford stated the issue was limited to a specific and did not impact overall operations. In January 2016, Changan Automobile faced penalties as the first domestic Chinese automaker punished for vehicle emissions violations, involving 2,186 affected cars where non-compliant parts were identified and subsequently repaired in about 90% of cases by mid-January. The incident highlighted early enforcement of China's tightening environmental standards on automakers, though specific monetary fine details were not publicly detailed beyond the mandated fixes and industry-wide signaling for compliance. Changan's finance subsidiary, Chongqing Changan Automobile Finance Co., received a 530,000 yuan fine in July 2025 from regulators for irregularities in credit asset collection and management practices. Regarding broader business practices, Changan faced supplier disputes in 2023 when some vendors alleged unilateral 10% payment reductions to offset cost fluctuations and production adjustments, prompting letters of complaint. Changan denied arbitrary cuts, attributing any changes to negotiated terms amid market pressures and reporting unsubstantiated rumors to authorities, with no subsequent regulatory penalties imposed.

Market Expansion Challenges

Changan Automobile's international expansion has been impeded by protective s in key markets, particularly for its electric and new energy vehicles. In October 2024, the imposed provisional tariffs ranging from 7.8% to 37.6% on Chinese-made battery electric vehicles, citing state subsidies as distorting competition; these measures, finalized in 2025, have compelled Changan to accelerate plans for a European factory to localize assembly and evade import duties. Similarly, U.S. tariff proposals, including a 25% levy on vehicle imports discussed in early 2025, threaten access to , where Chinese automakers already face Section 301 duties averaging 27.5%. These barriers have slowed export growth, with Changan's overseas sales reaching 299,000 units in the first half of 2025—a modest 5.1% year-on-year increase amid broader industry headwinds. Regulatory compliance and quality standards present additional obstacles, especially in discerning markets like and . Singapore's rigorous criteria for vehicle safety, emissions, and after-sales service, enforced through bodies like the , challenge Changan's end-to-end supply chain, as highlighted by Vice President Guan Xin in June 2025; the city's annual new car sales of over 50,000 units serve as a stringent testing ground rather than a high-volume opportunity. In , compliance with safety ratings and WLTP testing cycles demands costly adaptations, while entrenched brands dominate service infrastructure; Changan's entry into the with the Deepal S07 in September 2025 underscores the need for localized R&D to meet these norms, despite ambitious targets for 100,000 annual sales. Geopolitical risks and brand perception further complicate penetration into emerging and sanctioned regions. U.S.-imposed sanctions forced Changan's exit from in recent years, derailing joint ventures and exposing vulnerabilities to extraterritorial restrictions that limit technology transfers and financing. Overseas, persistent toward Chinese vehicles' long-term reliability—stemming from historical concerns over parts availability and build quality—hampers dealer recruitment and consumer adoption, even as Changan invests in networks across 10 European countries by end-2025. These factors, compounded by intense local , have prompted strategic shifts like the Rayong, plant opened in May 2025 to bolster Southeast Asian foothold, yet global sales ambitions remain tempered by such externalities.

References

Add your contribution
Related Hubs
User Avatar
No comments yet.