Changan Automobile: Aiming for sales of 3.4 million own brand vehicles in 2025

Focusing on new energy vehicles and smart cars

2016/09/30

Summary

Changan Automobile Group Vehicle Sales

 China Changan Automobile Group Co., Ltd., one of China’s four major automobile company groups, iproduces and sells automobiles; manufactures engines and parts; and engages in trade and other services.

 One of its group companies is Chongqing Changan Automobile Co., Ltd., which handles automobile manufacturing, and not only produces own brand vehicles, but also operates joint ventures with a number of foreign companies. It is an OEM that is growing its own brands rapidly in China.

 The Changan Automobile Group was founded as the “Shanghai Foreign Gun Bureau” 1862. It was later renamed “Changan Equipment Manufacturing” and eventually became Changan Automobile Group as it is known today. “China Changan Automobile Group Co., Ltd.” is a subsidiary of the China South Industries Group Corporation, which is involved in the arms industry.

 In 2010, Changan Automobile Group’s automobile sold (vehicle shipments from its plants) approximately 2.298 million vehicles, but between 2011 and 2012, sales dropped to below 2 million units. This can be attributed to the government cancelling its sales promotion measures (replacement incentive packages, automobile popularization measures in rural areas) at the end of 2010, and anti-Japanese sentiment in 2012 that affected sales of Japanese OEMs the automaker has joint ventures with. After 2013, Changan Automobile Group’s sales have steadily increased to exceed 2.5 million units in 2014. In 2015, the group sold roughly 2.788 million vehicles, making it the fourth largest automaker in the Chinese market.

 Sales during the first half of 2016 (January to June) saw SUV models such as the CS75 and CS35, as well as MPV models such as the Honor and Oushang, coming in the top 10 of the rankings for their respective segments, with sales figures increasing to approximately 1.49 million vehicles. As a result, Changan Group outperformed FAW Group to become the third largest carmaker. For 2016, the OEM has set a goal of 2.95 million vehicle sales for its group as a whole.

 At its 150th anniversary commemoration event in November 2012, Changan Automobile Group declared that it had set a sales target of 6 million units by 2020, of which 60 to 70% of its sales would be composed of own brands. However in 2015, the OEM has made downward adjustments, and its current group sales target through 2020 has been revised to 4.5 million vehicles, with 2.47 million to be own brands.

 Changan Automobile Group’s goal for 2025 is to have sales of 6 million for its group as a whole, with 3.4 million vehicles from own brands. The group also aims for its own brands to come in the top 10 globally.

Correlation diagram of Changan Automobile Group's major group companies (% are investment ratios)