Chongqing Changan Automobile Co Ltd: A New Era in the Automotive Industry
In a significant development for the automotive sector, Chongqing Changan Automobile Co Ltd, a prominent player in the consumer discretionary industry, has been at the center of transformative changes. Listed on the Shenzhen Stock Exchange, the company has seen its stock close at 13.37 CNH on July 27, 2025, with a 52-week high of 16.35 CNH and a low of 11.32 CNH. With a market capitalization of 112,490,000,000 CNH and a price-to-earnings ratio of 17.08, Chongqing Changan Automobile is poised for strategic growth.
Formation of China Changan Automobile Group
On July 29, 2025, the State-owned Assets Supervision and Administration Commission of the State Council (SASAC) announced the formation of China Changan Automobile Group Co., Ltd. This new entity, backed by SASAC, marks a pivotal shift in the competitive landscape of the automotive industry. The group, now a central enterprise, is ranked 73rd on the “Central Enterprise List,” joining the ranks of China FAW Group and Dongfeng Motor Corporation as one of the three major automotive central enterprises.
The establishment of China Changan Automobile Group was celebrated at a founding ceremony in Chongqing, signifying the launch of the first central enterprise headquartered in the city. This strategic move is expected to bolster the company’s influence and operational capabilities within the industry.
Strategic Acquisitions and Partnerships
In a series of strategic maneuvers, China Changan Automobile Group has expanded its influence through significant acquisitions. On July 29, 2025, it was revealed that the group had acquired a 50.93% indirect stake in East Power (600178) through its subsidiary, Chint Group. This acquisition positions China Changan Automobile as the indirect controlling shareholder, with SASAC remaining the actual controller.
Additionally, the group has increased its stake in Hunan Tianyan (600698) to 37.25% through Chint Automobile Technology Group, further solidifying its position in the automotive sector. These acquisitions are part of a broader strategy following the division of China North Industries Group Corporation, which saw its automotive business transferred to the newly established China Changan Automobile Group.
Impact on Subsidiaries and Market Position
The formation of China Changan Automobile Group and its subsequent acquisitions have significant implications for its subsidiaries. Longue Changan, a key commercial vehicle business unit, has announced plans to leverage the resources of the new group to accelerate development. In the first half of 2025, Longue Changan achieved sales of 140,300 vehicles, a 10.1% increase year-over-year, with exports reaching 43,200 vehicles, up 7.9%.
Longue Changan is focusing on enhancing its technological capabilities, particularly in autonomous logistics and intelligent operation platforms, in collaboration with partners like Neihua (300750), JD.com, and Huawei. This strategic direction aims to transform Longue Changan into a leading brand in intelligent new energy commercial vehicles.
Leadership and Future Outlook
The management team of China Changan Automobile Group, announced shortly after its formation, includes key figures such as Zhu Huarong, the current chairman of Chongqing Changan Automobile, who will serve as the party secretary and chairman of the new group. Other notable appointments include Zhao Fei and Tan Benhong as deputy party secretaries and board members, with Zhao Fei nominated as the general manager.
As China Changan Automobile Group embarks on this new chapter, its strategic acquisitions, leadership appointments, and focus on technological innovation position it as a formidable force in the global automotive industry. The group’s commitment to leveraging central enterprise resources and fostering partnerships underscores its ambition to drive growth and transformation in the sector.