Changan Automobile

Last updated
Changan Automobile (Group) Co., Ltd.
Company type State-owned
ISIN CNE000000R36  OOjs UI icon edit-ltr-progressive.svg
Industry Automotive
Founded1862;162 years ago (1862)
Headquarters
Chongqing
,
China
Area served
Worldwide
Key people
Wang Jun (President)
Products Motor vehicles
Production output
2,553,052 units (2023) [1]
Parent China South Industries Group
Subsidiaries
Chinese name
Simplified Chinese 重庆长安汽车股份有限公司
Traditional Chinese 重慶長安汽車股份有限公司
Literal meaningChongqing Changan Automobile Joint-stock Limited Corporation
Transcriptions
Standard Mandarin
Hanyu Pinyin Chóngqìng Cháng'ān Qìchē Gǔfèn Yǒuxiàn Gōngsī
Website globalchangan.com

Changan Automobile Co., Ltd. [2] (CCAG) is a Chinese 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. It was not until 1959 when the factory was repurposed to manufacture Changjiang Type 46 jeep that it became an automobile manufacturer. [4] [5]

Contents

The company produces and sells vehicles under its own branding, such as Changan, Deepal, Avatr, 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 Company (SZSE : 000625), is listed on the Shenzhen Stock Exchange (but is also state controlled). [3]

History

Changan's early origins can be traced back to 1862 when Li Hongzhang set up a military supply factory, the Shanghai Foreign Gun Bureau. [8] It is China's oldest automobile maker. [5] In 1937, during the Second Sino-Japanese War, the factory was moved to Chongqing when Shanghai was invaded and bombed. [9]

In 1959 a predecessor entity, Chongqing Changan Arsenal, under contract to the government, began auto manufacturing and built Changjiang Type 46 jeep which was the first production vehicle of China. [10] Changan introduced minicar by licensing from Suzuki in 1979. [11]

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.

In November 2012, Changan Ford Mazda Automobile was divided into two new joint venture companies: Changan Ford and Changan Mazda. [18]

Changan plans on ending production of vehicles powered solely by internal-combustion engines by 2025, as the automaker will be selling only 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, Hongqi, 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 company 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]

Brands and products

Changan produces and markets vehicles primarily under 5 brands: [22]

Changan Auto

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

Changan Nevo (Qiyuan)

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. [23] The A05 is a rebadged Changan Yida with restyled front and rear ends. [24]

Deepal (Shenlan)

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

Avatr Technology is a premium EV brand Changan joint-ventured with battery provider CATL and multiple Chinese domestic foundations, technology supported by Huawei. [25]

Changan Kaicene

Current models

Former Kaicene models

Sales

Changan group sales (foreign joint-venture brands excluded) [26] [27] [28] [29] [30]
YearTotal [a] Changan [b] Deepal Avatr Oshan JMH

(Landwind)

20101,239,9901,047,983---192,007
20111,025,233816,627---208,606
20121,053,645841,137---212,508
20131,152,537901,270---251,267
20141,363,4871,055,630---307,857
20151,504,9361,199,053---305,883
20161,682,7411,304,612---378,129
20171,597,5431,215,406---382,137
20181,270,100729,067--192,745348,288
20191,331,802849,552--153,258divested
20201,503,604978,398--113,820
20211,754,7071,009,822--194,381
20221,874,5691,125,04833,354757222,030
20232,097,7941,432,543136,91227,589discontinued

Joint ventures

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)

A Chinese police Ford Focus, 2007 CNpolicecarfocus.jpg
A Chinese police Ford Focus, 2007

In 2001, Changan Ford was formed [31] 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. [32] 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. [33]

Changan Mazda (2012–present)

Changan Kuayue

Chongqing Kuayue Automobile is a co-operative venture between Changan and Chongqing Kuayue Group specializing in commercial vehicle production. [34]

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

Former models

Jiangling Investment and Jiangling Motor Holding

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, [36] with a 41.03% stake as of March 2018. [37] JMH also owned the Landwind marque. [36] [38]

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) [39] [40] and it would issue 100% more shares to be sold to investors, leaving JMCG and Changan with a 25% stake each. [40] Jiangling Investment was formally established in May 2019, completing the split of the former JMH. [41] 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. [42] [43]

Former

Oshan (2017–2024)

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. [44]

Changan PSA (2010–2020)

DS 5LS DS 5LS China 2014-04-15.jpg
DS 5LS

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. [45] Named CAPSA, it was the PSA Group's second joint venture company in China, after Dongfeng Peugeot-Citroën Automobile, and its first with Changan. [46] 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. [47] Manufacturing commenced in 2014, with China specific Citroën DS models; the DS 5LS first and then the DS 6WR. [48] The venture was dissolved in 2020.

Changan Suzuki (1993–2018)

Changan Suzuki SC7080 Alto Chang'an Suzuki SC7081A City Baby (Suzuki Alto).jpg
Changan Suzuki SC7080 Alto

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 [49] ) under license into the 2000s. [50] The two companies formed Chongqing Changan Suzuki Automobile Co in 1993, [31] 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. [50] 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. [51]

Production and research facilities

Domestic

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 [52] 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

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

An existing R&D center in Beijing [53] will soon be joined by a passenger car production base in Fangshan District, Beijing, which will become operational in 2012.[ citation needed ]

Chongqing

Changan has numerous sites in the city of Chongqing. A Changan-Ford plant and another, planned Changan-Ford plant (which may produce engines [54] ) are joined by a Chongqing-based R&D center [53] and an industrial park in Yubei, Chongqing.[ citation needed ]

Hebei

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

Heilongjiang

A Harbin, Heilongjiang province, R&D center, is now a Changan asset. [53] It may have been owned by Hafei prior.

Jiangsu

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

Jiangxi

A planned Changan commercial vehicle production base in Nanchang, capital of Jiangxi province, will produce JMC and Ford-branded vehicles [54] and join an R&D center [53] as a second facility in this province. The latter facility may be a former Changhe asset.

Shanghai

Changan has an R&D center in this coastal city. [53]

International (Overseas)

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. [55] The Changan CS35 is built in Lipetsk region of Russia since 2016. [56] Also Changan vans and pickup trucks were assembled at Ganja Auto Plant in Ganja city, Azerbaijan in 2005.

Pakistan

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. [57]

R&D centers

Changan has over 7,000 engineers and researcher working in R&D facilities in Chongqing, Beijing, Shanghai and Harbin, [8] Turin, Italy, [53] and Yokohama, Japan. [53] It set up two more in 2011. These are located in Birmingham (originally was set up in Nottingham), United Kingdom, and Detroit, United States. [58] The Detroit center opened in early 2011, and its office was moved to Plymouth 2015. [59] [60]

See also

Notes

  1. ↑ Including passenger and commercial vehicle
  2. ↑ Changan brand passenger vehicle only after 2019

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    58. ↑ For Birmingham center, see "Chinese car maker to create 200 new jobs in Nottingham". East Midlands Development Agency. Archived from the original on 2011-07-18. Retrieved 2011-02-02.
    59. ↑ "Changan UK R&D Center website". Changan UK R&D Center, Inc. n.d. Archived from the original on 2018-08-17. Retrieved 1 November 2018.
    60. ↑ "Changan USA R&D Center Set Up in Detroit". changanus.com. Changan US R&D Center, Inc. 18 January 2011. Archived from the original on 13 December 2013. Retrieved 27 September 2013.
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