Changan Automobile is leveling up. The company has been officially reformed into a new state-owned enterprise, placing it under the direct control of China’s central government. This is a major move that puts Changan in the same league as automotive titans like China FAW Group and Dongfeng Motor Corporation. It’s a signal that the government is getting serious about its automotive assets, and Changan is now one of its champions.
The new entity, formally named China Changan Automobile Group Co., Ltd., was registered on July 27 with a massive capital of 20 billion yuan (about 2.75 billion USD). It will be supervised by the State-owned Assets Supervision and Administration Commission (SASAC), which basically means it’s now a top-tier player in the state-controlled economy. With its headquarters in Chongqing, the group’s focus is clear: selling cars and new energy vehicles (NEVs) while pushing the boundaries of automotive R&D. Zhu Huarong, the current chairman of Changan Automobile, is set to lead the new powerhouse.
A New Mission and a Bold Statement
Changan didn’t waste any time celebrating. On the evening of July 28, its brands, including the forward-thinking Avatr and Deepal, lit up social media with posters declaring a “New Mission, New Journey.” The promotional blitz featured the entire brand family: Avatr, Deepal, Qiyuan, Changan Auto, and Changan Kaicheng.
To make sure everyone got the message, the company staged a flashy display at Chongqing Jiangbei International Airport. A fleet of 200 Avatr vehicles created a coordinated spectacle celebrating the group’s formation. It’s a confident move that shows Changan isn’t just a car company anymore; it’s a national project with serious backing. This restructuring brings together a diverse portfolio, from the tech-forward Avatr to the more mainstream Changan Nevo series, which has already been shaking up the market with affordable, high-tech models.
What This Means for the Future
The inside story of this transition will become clearer on July 30, when executives from the newly formed group hold their first media session. They’re expected to review their performance from the first half of 2025 and, more importantly, lay out their strategy for the rest of the year. With the full integration of the new organization expected to wrap up by August, the company is moving fast.
This move elevates Changan to compete more directly with other state-owned giants like Dongfeng. With direct government oversight and a significant capital injection, Changan is well-positioned to accelerate its development of NEVs and smart vehicle technologies. This could lead to more ambitious projects, faster innovation across its brands, and even more competitive pricing. We’ve already seen hints of this strategy with models like the Nevo Q05 SUV, which packed surprising features for its price.
It’s also worth noting a bit of corporate housekeeping that happened in the background. In June, Changan Automobile’s former parent company changed its name to “ChenZhi Automotive Technology Group Co., Ltd.” This new China Changan Automobile Group is a completely separate entity, created specifically to be a central SOE. This isn’t just a name change, it’s a fundamental restructuring of power and purpose, designed to sharpen Changan’s edge in the fiercely competitive EV landscape.
