Written by / Yu Fei

Produced by / Five-Star Car Reviews

There are no accidents, only the inevitable unfolding of expectations! On July 29, China Changan Automobile Group Co., Ltd. was officially launched in Chongqing, becoming the third centrally-administered state-owned automobile enterprise, following FAW Group and Dongfeng Motor Corporation.

This milestone brings together Chongqing Changan's automotive business and Chenzhi's component resources, forming a comprehensive industrial layout encompassing "vehicle R&D and manufacturing + core component supply." Chongqing Changan now forms an integral part of Changan's 163-year history, while the new Changan embarks on a fresh chapter with a more cohesive and comprehensive industrial ecosystem.

Zhu Huarong, a seasoned manager deeply familiar with Changan's automotive business, will helm the new enterprise. This arrangement ensures continuity, as Zhu has been intimately involved in the transition from traditional fuel vehicles to new energy vehicles, possessing a keen understanding of resource integration. By fostering the integration of related businesses, he aims to maintain the strategic direction of the "Third Innovation and Entrepreneurship Plan" and avoid any disruptions during the transformation process.

01 Zhu Huarong at the Helm: A Well-Deserved Choice

Zhu Huarong's journey with Changan is deeply etched in the company's annals. After graduating from Beijing Institute of Technology in 1986, he joined the Changan system as a workshop technician, honing his technical skills in frontline roles such as engine R&D and vehicle manufacturing. Over his 39-year career, he has spearheaded numerous breakthroughs, including transitioning passenger vehicles from minivans to mainstream markets, developing popular models like the Eado and CS series, solidifying the independent brand's foothold in the fuel vehicle era. Post-2010, he foresaw the potential of new energy and led the formation of a research and development team, paving the way for the subsequent transformation.

In 2018, Zhu Huarong spearheaded the "Third Innovation and Entrepreneurship Plan," setting the course for Changan to "transform from a traditional automaker to a technology-driven enterprise." This strategy fueled continuous advancements in core technologies, including achievements in new energy like the Blue Whale iDD hybrid system and pure electric platforms, and the implementation of L2+ level intelligent assisted driving in the realm of intelligence. Seven years into the plan, Changan can be said to have accomplished its transformation and upgrading.

The consolidation of the vehicle and component businesses into a single system, forming an independent new centrally-administered state-owned enterprise, deepens this strategy. Zhu Huarong's strengths lie in two areas: his proficiency in top-level design and forward-looking strategies, equipped with the global vision of an exceptional entrepreneur, as exemplified by the "Shangri-La" initiative for new energy, the "Beidou Tianshu" initiative for intelligence, and the "Hai Na Bai Chuan" initiative for globalization, which pave the way for high-quality development and accelerate China Changan's transformation into a global player. Secondly, his clear and accurate understanding of the new vehicle-component relationship. "The automotive industry is rapidly transforming from traditional manufacturing to a 'high-tech platform' industry, fostering cross-border integration with energy, transportation, communications, and technology. The supply chain ecosystem is evolving from a linear relationship to a mesh-like ecology."

02 The Formation of New Changan: A Timely Move

The inception of New Changan essentially injects momentum into deepening the "Third Innovation and Entrepreneurship Plan" through optimal resource allocation. The global automotive industry is currently undergoing accelerated transformation: on one hand, competition in the new energy market has entered a phase of "refined competition," with domestic new energy penetration rates exceeding 44% in the first half of 2025, necessitating a balance between "technological iteration" and "cost control"; on the other hand, intelligence competition has intensified, with the implementation of technologies like intelligent driving relying more on the deep coordination between "vehicle control and component response."

Previously, Changan clearly outlined the goal of "building a world-class automobile brand" in the "Third Innovation and Entrepreneurship Plan." In the first half of 2025, Changan's related vehicle business sold a total of 1.3553 million vehicles, marking a 1.59% year-on-year increase and reaching a new high in the past eight years; among them, 451,700 new energy vehicles were sold, representing a 49.05% year-on-year growth, emerging as a key incremental source.

However, the development landscape facing Changan does not warrant blind optimism: the overall sales growth rate has decelerated compared to previous years, indicating unprecedentedly fierce market competition. In the first quarter of 2025 (prior to integration), the total operating revenue of related vehicle businesses was 34.161 billion yuan, a year-on-year decrease of 7.73%. While net profit attributable to shareholders increased by 16.81% year-on-year, the disparity in growth rates between revenue and profit underscores the urgency of "improving profitability efficiency through resource integration."

Evidently, a critical task post-formation for New Changan is to achieve a dual positive cycle of "sustained high-speed sales growth and significant profit enhancement."

03 Transformation in Deep Waters: A Race Against Time

The formation of New Changan does not lighten the burden on Changan personnel but rather intensifies it. Internally, several major brands under Changan, particularly Deep Blue Automobile and AVATR Technology, have yet to firmly establish their market presence and are not yet capable of competing independently with new automotive forces.

Externally, market competition does not pause: leading new energy enterprises have achieved economies of scale, and foreign brands are accelerating the introduction of advanced technologies. New Changan must swiftly convert integration advantages into product competitiveness within the framework of the "Third Innovation and Entrepreneurship Plan" — for instance, leveraging coordinated technical capabilities to propel new intelligent vehicles to achieve breakthroughs in electric performance and intelligent functions, thereby capturing a larger market share.

Clearly, New Changan must continue to race against time in the depths of transformation and upgrading. However, opportunities and challenges coexist at all times, and the market is impartial to all competitors. Standing at a new historical juncture, the formation of New Changan is undeniably a 100% correct decision. It explores a transformation path of "strategic continuity + resource complementarity": not only ensuring that the "Third Innovation and Entrepreneurship Plan" remains on course through a stable management team but also addressing efficiency issues during the transformation through the coordination of "vehicle-component" relationships. For China's automotive industry, this strategic resource integration holds greater reference value than merely pursuing scale.

Congratulations to New Changan! It embodies not only an enterprise's transformation vision but also the tangible efforts of Chinese automotive brands striving for discourse power in global competition through resource integration.

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