Changan Auto Transforms into State-Owned Independent Carmaker, Reports Say

Key Takeaways

Changan Automobile has been restructured into an independent automaker under direct oversight of China’s central government.
The company aims to enhance its focus on smart vehicles, flying cars, and robotics, while expanding into global markets.
In the first half of 2025, Changan saw significant growth, selling 1.355 million vehicles, including 450,000 new energy vehicles (NEVs) – a 48.8% increase year-on-year.

Changan Automobile Transforms into Independent Entity

Changan Automobile Co has officially transitioned into an independent automaker under the direct supervision of China’s central government, as reported by state broadcaster CCTV News on January 9, 2025. This restructuring makes Changan the third major automotive company administered by the State-owned Assets Supervision and Administration Commission (SASAC), following FAW Group and Dongfeng Motor.

The company, formerly a subsidiary of China South Industries Group Corp, is based in Chongqing Municipality and boasts 117 subsidiaries. Changan’s strategy emphasizes advancements in cutting-edge technology fields such as smart vehicles, robotics, and flying cars. Furthermore, the automaker plans to accelerate its global expansion, targeting vital markets in Southeast Asia, the Middle East, Central and South America, and Europe.

Experts indicate that this restructuring is a pivotal measure in China’s broader initiative to reform state-owned enterprises (SOEs) and optimize state-owned capital distribution. It is viewed as a significant step to enhance the competitiveness of China’s automotive industry.

Recent data demonstrates Changan’s robust performance; in the first half of the year, the company sold 1.355 million vehicles. Among these, 450,000 were new energy vehicles (NEVs), reflecting a notable year-on-year increase of 48.8%. The surge in NEV sales is particularly significant as it aligns with the growing trend toward greener automotive solutions.

During earlier restructuring announcements in February, both Dongfeng Automobile and Changan indicated changes involving their controlling shareholders—both being centrally administered SOEs. Zhang Yuzhuo, chairman of the SASAC, noted in March 2024 that the commission intends to adjust policies to independently assess the NEV operations of these state-owned automakers based on criteria such as technology, market share, and future development prospects.

This realignment and focus on innovative technologies and international markets underscore Changan’s commitment to evolving in a rapidly changing automotive landscape. By embracing smart solutions and targeting crucial markets, the company aims to position itself as a leader in the global automotive industry, capitalizing on trends in electrification and intelligent transport solutions.

The content above is a summary. For more details, see the source article.