The China Changan Group, which recently celebrated its 150th anniversary, has attracted more attention for the development of its own brand Changan Automobile. Vow to produce and sell 6 million vehicles in 2020, of which Changan Automobile, with its own brand planning to account for 60%-70%, hopes to stand out among its own brands.

However, as China’s auto market entered a “micro-growth”, independent innovation capability ranks first in the industry, but Chang’an Automobile, which has never had significant sales and product development, has also started a series of reforms and adjustments.


"Youth" Chang'an


"I say 'hundred years of Chang'an, but 'juvenile' refers to Chang'an Automobile." At the 150th anniversary celebration in Chang'an, Hebei Station, Changping Automobile Chairman Xu Liuping said.


Changan Group, which has a century of history, thinks that Changan Automobile is still in a stage of growth. "In the next 2020, I say we want to become a youth Changan Automobile."


In the increasingly fierce competition in the Chinese auto market and the development of self-owned brands frequently encountered resistance, Changan Automobile, one of the "big four" auto groups, had to plan for its own future.


“Independent innovation is also an important direction for future development. We have made a vision for '2020'. The goal of Chang’an is to meet the scale of production and sales of 4 million units by 2015-2016 and strive to reach the scale of 2020. To reach the scale of 6 million vehicles, 60%-70% of them are the planning of their own products,” said Chang Baolin, president of Chang’an Automobile.


Data show that in the first 11 months of this year, Changan Automobile Company (Headquarters) achieved sales of 497,854 units, an increase of 17.7% year-on-year, while sales of its Changan Commercial Vehicles and Changan Suzuki dropped by 27.7% and 22.4% year-on-year.


Zhang Baojun, director of public relations at Changan Automobile, told the Times Weekly reporter that due to the shift in the company's strategic focus, the investment in mini vehicles has decreased. Since 2004, the company has begun to vigorously develop the sedan business, which has affected the sustained development of micro-cars to some extent. “In the future, we have established a series of classic products to establish the advantages of Chang’an commercial vehicles. In terms of technology, Chang’an Onoruc is the only commercial vehicle that has passed five-star safety collisions at the same time. It also carries Mitsubishi power and Chang’an Taurus. Compared with similar models, the company also has strong product competitiveness in terms of safety and product quality, as well as new F101 products to be launched next year, and the products are highly competitive.In terms of product planning, Changan Commercial Product Planning currently In 2017, we have provided resources for Changan’s leading commercial products.”


Brewing adjustment


On November 30th, Changan Automobile, Ford and Mazda announced a joint statement: The three-party joint venture company headed by China’s Fu Ma Cun continued its restructuring plan and has passed approval from relevant government agencies. With immediate effect, Chang Fuma continues to be split into two joint ventures. The long-term fuma “splitting home” that has plagued many years has finally settled.


It is reported that "Changan Ford Motor Co., Ltd." is invested by Changan Automobile and Ford at a ratio of 50:50, and assumes all Ford-related businesses of Chang Fu Ma. The newly established company “Changan Mazda Automobile Co., Ltd.” in Nanjing is funded by Chang’an Automobile and Mazda at a ratio of 50:50, and assumes all the businesses related to Mazda. After the separation, the two new joint ventures will launch their own joint venture brands.

Subsequently, Changan Automobile issued an announcement stating that in order to expand its product lineage and avoid potential peer competition with its controlling shareholder Changan Automobile Group, the company plans to use self-raised funds to acquire 50% of Changan Peugeot Citroen Automobile Co., Ltd., a parent company listed and sold by Changan Automobile Group. Equity.


Although Chang'an Peugeot Citroen Co., Ltd., which is expected to start production in July of the next year, has a negative result, the group expects it to reach capacity in 2015 and start making profits. Therefore, the prospect of acquiring CAPSA is good, and it will provide stable support for the performance of listed companies in the future. In the future, the company's mid-to-high-end vehicle business will bring about long-term development and bring continuous returns.


"As far as the Chinese auto industry is concerned, the sooner the investment is, the better, so that the market share and development opportunities you grab will be higher. So in recent years, Changan Automobile has taken full advantage of the timing of the current restructuring of the Chinese auto market, and it is determined to increase Investment in R&D will increase investment in product technology,” said Zhang Baojun.



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