Changan’s Deepal Automobile Technology Co., Ltd. has officially announced its acquisition of the former Beijing Hyundai Motor Company plant in Chongqing. This significant 1.62 billion yuan (approximately 228 million USD) deal marks a bold move for Deepal, expanding its manufacturing capabilities and hinting at exciting future developments.
A New Era for the Chongqing Facility
The Chongqing plant, a colossal 1.87 million square meter facility that commenced production in 2017 with an initial investment of 7.75 billion yuan (around 1.09 billion USD) and a designed annual capacity of 300,000 vehicles, has been dormant since December 2021. Now, under Deepal’s ownership, this sleeping giant is poised for a grand reawakening. While Deepal has confirmed plans for the facility’s use, the specific models destined for production and the launch timeline remain exciting mysteries. We are certainly on the edge of our seats to see what performance machines will roll off these refreshed production lines.
The Journey to Acquisition
The acquisition process for this massive plant was a prolonged affair, spanning several public listings. It debuted in August 2023 with a hefty 3.68 billion yuan (about 517 million USD) asking price, which found no takers. Subsequent listings saw the price drop to 2.58 billion yuan (around 363 million USD) and then to 1.917 billion yuan (about 270 million USD) before ultimately settling at the final transfer price of 1.62 billion yuan. The ultimate buyer was Chongqing Liangjiang New Area Yufu Industrial Park Construction Investment Co., Ltd., a state-controlled entity under the Chongqing Liangjiang New Area administration, which then facilitated Deepal’s takeover. This strategic move highlights the evolving landscape of China’s automotive industry.
Deepal Poised for Expansion
With existing production facilities in Nanjing and Beijing, the addition of the Chongqing plant significantly boosts Deepal’s manufacturing footprint. The brand is clearly on an upward trajectory, evidenced by its strong sales performance. In October 2024, Deepal recorded an impressive 36,792 sales, contributing to a cumulative January–October volume that surged by 57.1% year-on-year. Their Deepal S05 crossover, for instance, exceeded 20,000 global sales in October. Although production has not yet begun at the Chongqing site, the company confirmed rebranding efforts were completed in late October. This expansion aligns perfectly with Changan Automobile’s broader strategy, which aims for an ambitious annual production target of five million units across all its brands.
A Shifting Automotive Landscape
Industry experts view this acquisition as more than just a company expanding its production capacity. It represents a significant trend in China’s automotive production landscape, where domestic EV manufacturers are increasingly revitalizing idle factories previously owned by joint ventures. This dynamic shift underscores the growing dominance and strategic foresight of Chinese EV brands in the global market. Furthermore, Changan’s long-term vision for capacity planning, with its goal of five million units annually across its brands, sets a formidable precedent. As Changan continues to accelerate its EV push, we can expect to see more innovative models rolling out, potentially from this very Chongqing plant.
This move by Deepal is a clear signal of confidence and ambition, solidifying its position as a key player in the fiercely competitive Chinese EV market. The automotive world is watching closely to see how this strategic acquisition will propel Deepal to new heights and what cutting-edge vehicles will emerge from its newly acquired home in Chongqing.
