Changan Auto to build 2 to 3 manufacturing bases overseas by 2025

Beijing (Gasgoo)- Changan Auto unveiled its new energy vehicle brand Shenlan (meaning deep blue in English), and its goal to vigorously expand its new energy vehicle, intelligent vehicle, and overseas influences at the Changan Automobile Global Partner Conference on April 13th.

Photo credit: Changan Auto

The new brand, Shenlan, will launch its first vehicle model, currently dubbed the C385, in the second quarter of 2022. The model offers two power options, battery-electric and extended range. Meanwhile, the freshly formed brand has five other models under planning.

Photo credit: Changan Auto

In addition to the Shenlan brand, Changan Auto also introduced a compact vehicle named LUMIN, which will also be on the market this year. The LUMIN will be produced under Changan New Energy.

Furthermore, according to the president of Changan Auto, Wang Jun, the company plans on debuting 36 new models to the public this year. Its wholly-owned brands will put 9 brand new and 10 refreshed models on the market, while its new energy vehicle arm launches 8 models. 

Photo credit: Changan Auto

With the LUMIN, C385, AVATR 11, and the C673 models, as of now, Changan Auto’s new and refined new energy product portfolio has officially set sail, the president added.

Notably, the automaker will adopt a new marketing model that sets a fixed price nationwide, to unburden distributors. The new strategy will be initially used on selling the LUMIN model, and gradually branches out to the company’s entire lineup of future models. 

With a slew of new products scheduled to compete in the market this year, Changan Auto is optimistic about its annual performance in 2022. The company projects a 6.5% year-on-year increase in sales to a total of 2.45 million vehicles sold. 1.857 million will be made up by its wholly-owned brands, representing an estimated 5.95% rise from a year ago. By the end of 2022, Changan Auto aims to take 11% of the entire market. At the same time, the company hopes to reduce its supply chain costs by 5% through auto parts optimization and improve its resource utilization efficiency. 

The automaker's goal may not be so farfetched. In fact, despite the many external objective factors that limited the sales and production of many automakers in China this year, from January to March, the accumulated sales volume of the company amounted to 650,000 vehicles, edging up 1.63% compared to 2021.

Photo credit: Changan Auto

In the coming years, Changan Auto eyes an annual sales target of 4 million vehicles by the year 2025, accounting for 35% of the market. 3 million vehicles should be from Changan Auto’s wholly-owned brands, while 1.05 million of the vehicles should be new energy vehicles. 

By the year 2030, Changan Auto expects to sell 5.5 million vehicles annually. 4.5 million should be its wholly-owned-branded vehicles, and 2.7 million should be new energy vehicles. At the same time, Changan Auto intends to reinforce its market share to 60% and its export volume to 30% of the company’s sales.

Notably, in line with its export ambitions, Changan Auto plans to build 2 to 3 manufacturing bases overseas by 2025. When the time comes, the company will also set up headquarters in Europe and North America. 

Additionally, in order to enhance its competitiveness in the automotive intelligence field, Changan Auto will establish a technology subsidiary, possibly named Changan Technology Company. The company will be dedicated to researching and developing chips and core algorithms, Changan Auto disclosed.