Changan Auto: A low-carbon smart mobility technology company to sell 4.5 million units in 2030
Investing CNY 70 billion in R&D of new tech. between 2021-2025, increasing NEV sales to 35% by 2025
According to Changan Automobile, the group's overall sales volume in 2020 will increase by more than 14% year-on-year to 2 million units. Of these, sales of Changan’s own-brand vehicles exceeded 1.5 million units, of which passenger cars exceeded 970,000 units. Changan Automobile Group's sales volume peaked in 2016 and subsequently continued to decline, but since 2020 has been increasing.
China Changan Automobile Group Co., Ltd. (hereinafter referred to as Changan Automobile Group) is a major corporate group engaged in finished vehicles, parts, logistics operations, etc. Chongqing Changan Automobile Co., Ltd. (Changan Automobile) is a core company under the Changan Automobile Group, and is mainly engaged in the research, development, manufacturing and sales of passenger and commercial vehicles. Changan Automobile will expand the Changan, Oshan, and Avatar, a high-end EV brand announced in August 2021, as independent brands, Changan Ford and Changan Mazda as foreign joint venture brands, and Kaicene and Changan Kuayue as commercial vehicle brands. The joint ventures under Changan Automobile have been undergoing reorganization for the past several years. Following the acquisition of Changan Suzuki Automobile's shares, the company will change its name to Chongqing Lingyao Automobile Co.,Ltd. (Lingyao Automobile) in December 2020. Changan NIO New Energy Automotive Technology Co., Ltd. (Changan NIO), a joint venture with NIO, changed its name to Avatar Technology (Chongqing) Co., Ltd. in May 2021, and recently announced plans to increase its capital stake in the JV. In August 2021, FAW's capital participation in Changan Mazda was announced, and in September, Changan Mazda Automobile Co., Ltd. (CMA) became a joint venture between Chongqing Changan Automobile Co., Ltd. (CA), Mazda Motor Corporation (Mazda), and China FAW Corporation Limited (FAW).
At the 2021 Changan Auto Tech Ecosystem Summit, the company declared that it will transform itself into a low-carbon smart mobility technology company. During the 14th Five-Year Plan period (2021-2025), the company plans to invest CNY 150 billion, of which CNY 70 billion will be allocated for the development of new technologies. By 2025, the annual sales volume of Changan brand vehicles will be 3 million units and the ratio of new energy vehicles (hereinafter referred to as NEVs) will be 35%, and by 2030, the annual sales volume of Changan brand vehicles will be 4.5 million units and the ratio of NEVs will be 60%.
In terms of internationalization, the company has 14 manufacturing sites, 33 finished vehicle assembly plants, and engine and transmission plants around the world, and wholly owned subsidiaries or joint ventures in Italy, the UK, Japan, the U.S., Russia, Brazil, and Pakistan. According to the China Association of Automobile Manufacturers' list of the top 10 automakers in terms of exports in 2020, Changan Automobile ranked third with 82,000 units exported. Changan Automobile plans to export 400,000 units of its own brand by 2025 and 1 million units by 2030.
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