Changan Automobile has been officially established as a new state-owned enterprise directly managed by China’s central government.
The announcement, confirmed by Chinese media outlets including CCTV, places the company under the supervision of the State-owned Assets Supervision and Administration Commission (SASAC) of the State Council. The new structure gives Changan the same status as other centrally administered state-owned automakers like FAW and Dongfeng.
The company was formally registered on July 27 with a capital of 20 billion yuan (approximately $2.75 billion). Zhu Huarong, currently chairman of Changan Automobile, is listed as the legal representative and is expected to continue in a leadership role.
The headquarters remains in Chongqing, and the company’s focus includes the sale of automobiles and new energy vehicles (NEVs), along with the development of automotive components.
The establishment of the new group follows a restructuring process that began earlier this month. A team was assembled to prepare the transition, and full integration is expected to be completed by August.
This development comes after the previous parent company changed its name from “China Changan Automobile Group Co., Ltd.” to “ChenZhi Automotive Technology Group Co., Ltd.” The newly formed China Changan Automobile Group is a separate entity created under SASAC supervision.
On July 28, Changan and its brands, including Avatr, Deepal, Qiyuan, and Changan Kaicheng, released joint promotional content to mark the formation of the group, using the slogan “New Mission, New Journey.” That evening, 200 Avatr vehicles were deployed at Chongqing Jiangbei International Airport in a display celebrating the group’s launch.
The company’s first official media briefing is scheduled for July 30. Executives from the group and its affiliated brands will present business performance for the first half of 2025 and outline plans for the rest of the year.
With its new status, Changan is expected to operate more closely under central government directives. Reports indicate that Beijing has advised state-owned enterprises to avoid investments in European countries that support tariffs on Chinese electric vehicles. As a result, Changan canceled a planned launch event in Milan in October 2024 and moved it to Mainz, Germany, where tariffs have not been supported.
This shift may also affect the location of a planned vehicle factory in Europe. A company executive said discussions are ongoing, but no location has been finalized.
Changan plans to expand into Europe with three brands: Changan, Deepal, and Avatr. Launch markets include Norway, Denmark, Germany, the UK, and the Netherlands. The rollout will begin with the Deepal S07, expected to be priced at around €45,000, followed by the smaller Deepal S05.
