In the turbulent landscape of the global automotive industry in 2026, the “admission ticket” for top-tier players has become more expensive than ever.
On April 21, at the Changan Auto Group Global Strategy Conference, Chairman Zhu Huarong presented a stark set of survival rules: over the next three to five years, the competitive landscape will essentially solidify, and the threshold for the world’s top 10 automakers will continue to rise. Companies with annual sales of 8 million to 10 million units will “thrive,” while those at the 3 million unit mark will merely be on the “survival line.”
Based on this forecast, Changan Auto officially released its “1445” strategy. The plan explicitly aims for the company to rank among the world’s top 10 automotive enterprises by 2030. This includes doubling five key metrics: New Energy Vehicle (NEV) sales, overseas vehicle sales, operating revenue, total profit, and brand value. Specifically, the targets are 2.4 million NEVs, 1.5 million overseas sales, operating revenue of 600 billion RMB ($84 billion USD), and a brand value of 2000 billion RMB ($28 billion USD).
To achieve this, Changan Auto will consolidate resources and initiate a comprehensive strategic synergy between its luxury brand, Avatr, and its mid-to-high-end NEV brand, Deepal. This move marks Changan’s shift from pure “scale expansion” to “efficiency-driven” growth and suggests a new solution for Chinese automakers balancing internal competition with collaborative development.
### Reconstructing the Mid-to-High-End Brand Moat
The core of Changan’s integration lies in “independent front-ends and collaborative back-ends.” Zhu Huarong stated that by 2030, Avatr and Deepal will jointly form a mid-to-high-end brand cluster with a volume of 1.5 million units. Avatr is targeting 500,000 units, while Deepal is tasked with 1 million units.
From a financial perspective, although Changan Auto’s operating revenue grew steadily to 164 billion RMB ($23 billion USD) in 2025, net profit attributable to the parent company shrank significantly by 44.34% compared to 2024. Beyond the intense price wars, the primary constraints on profit have been the initial investment and R&D amortization for new brands. Post-integration, the two brands will achieve deep synergy in R&D, procurement, manufacturing, and support departments.
While specific details of the integration remain undisclosed, the move is expected to release significant cost-reduction potential, similar to the merger of Zeekr and Lynk & Co under Geely. On the technical side, unifying the “Three Electric” systems (battery, motor, electronic control), cockpits, intelligent driving architectures, and underlying software middleware is expected to lower R&D costs. On the supply chain side, standardized management will also bring cost reductions, helping Deepal and Avatr accelerate their path to profitability.
### Focusing on Core Blockbusters and Digital Ecosystems
If brand integration is about “saving,” then the streamlined layout of cutting-edge technology and product matrices is Changan’s strategic “revenue generator.”
While pursuing scale, Changan is undergoing an aggressive “slimming down” exercise. According to the latest plan, Changan’s product portfolio will be streamlined from the current 63 models to 36 over the next five years—a reduction of 43%. This means Changan is moving away from a “sea of cars” tactic to focus on “global blockbusters.”
The logic behind this adjustment is efficient resource allocation. Zhu Huarong plans to create one global hit with annual sales of 500,000 units and five hits with 300,000 units each. This supports the ambitious goal of reaching 2.4 million NEV sales (with a stretch goal of 3.6 million) by 2030.
In the field of NEV technology, Changan continues to innovate. Its self-developed battery brand, “Golden Shield,” offers thermal insulation performance 30% better than the industry average, ensuring zero battery overheating. Solid-state battery R&D is also progressing steadily, with vehicle testing expected in 2026 and mass production of all-solid-state batteries starting in 2027.
Furthermore, Changan is entering the field of embodied intelligence. Zhu Huarong mentioned that humanoid robots will enter mass production in 2028, eventually expanding to home service robots after 2030. Flying cars are also slated for mass production and delivery in 2028. Regarding autonomous driving, Changan plans to achieve large-scale L3 production by 2027 and full-scenario L4 by 2028.
### Overseas Markets as the “Second Curve” for Profit Growth
Overseas markets are rapidly transforming from “growth engines” to “profit pillars.” Data from 2025 shows that Changan Auto’s overseas sales reached 637,000 units, with a gross margin of 19.49%—significantly higher than its domestic business. In March of this year, monthly overseas sales exceeded 100,000 units, demonstrating strong momentum.
This performance is the result of Changan’s shift from “exporting products” to “exporting industry.” As an early adopter of globalization among Chinese automakers, Changan has evolved from simple vehicle exports to building a full industrial chain encompassing R&D, production, marketing, and service.
In 2025, with the start of production at its first overseas NEV plant in Rayong, Thailand, Changan established local capacity in Southeast Asia, effectively addressing long-standing after-sales service bottlenecks. Simultaneously, through deep cooperation with the top European dealer group Emil Frey, Changan has established mature sales and service networks in markets like Norway and the Netherlands.
Compared to only 17 export models in 2020, Changan’s overseas portfolio expanded to 41 models by 2025, including 25 traditional internal combustion engine vehicles and 16 NEVs. With total overseas production capacity now exceeding 800,000 units, Changan has a solid foundation for global competition. Looking ahead, doubling overseas sales is the key springboard for Changan to join the world-class ranks, with a target of 1.5 million units (stretch goal of 1.8 million) by 2030.
