As China's automotive industry navigates a pivotal period filled with both opportunities and challenges, reform of the "national team" has become imperative. However, few anticipated the reform's decisive and forceful nature.

On July 29, China Changan Automobile Group Co., Ltd. was officially inaugurated in Chongqing, a mere 56 days after the State Council formally approved the implementation of the split by China South Industries Group Corporation.

This marks a significant step forward in China's efforts to reform central enterprises and optimize the layout of state-owned capital. China Changan Automobile Group has now been officially included in the list of enterprises for which the State-owned Assets Supervision and Administration Commission of the State Council fulfills investor duties, bringing the total number of central enterprises in China to 100, with China Changan Automobile Group ranking 73rd. Concurrently, the "national team" comprising the three major central enterprise automotive groups will better support the high-quality development of the intelligent connected new energy vehicle industry and accelerate the development of world-class brands with global competitiveness.

With a registered capital of 20 billion yuan, total assets exceeding 300 billion yuan, and 117 subsidiaries and branches, this new "giant ship" known as China Changan Automobile Group will carry forward the profound heritage and robust strength of the century-old Changan. It shoulders the critical task of exploring industry transformation and upgrading, paving the way for the strategy of becoming a powerful automobile country, and embarking on a new journey.

Perhaps some may ask: why is the new central enterprise the new Changan?

The "Optimal Solution" for Breaking the Reform Deadlock

As a national pillar industry characterized by high technology and capital intensity, along with dense industrial chains, the automotive industry has always been a pioneer and leader on China's reform path. Especially in recent years, it has taken bold and decisive actions in deepening the reform of state-owned assets and enterprises, achieving certain phased results. However, with the rise of technological waves such as new energy and intelligent connectivity, the global industrial landscape is poised for reconstruction, and the responsibility of building a powerful automobile country rests heavily on our shoulders. As the "backbone" of China's automotive industry, central automobile enterprises need to break through with unprecedented perseverance and courage to achieve high-quality development and contribute greater strength to national economic and social development.

The newly established China Changan Automobile Group has become the "optimal solution" for breaking the deadlock in the new round of reform of central automobile enterprises.

As Zhu Huarong, Secretary of the Party Committee and Chairman of China Changan Automobile Group Co., Ltd., stated at the Global Launch Conference of China Changan Automobile Group Co., Ltd.: "The establishment of China Changan Automobile Group Co., Ltd. is a major strategic deployment by the Party Central Committee with Comrade Xi Jinping at its core, reflecting a comprehensive review of the situation and a commitment to promoting the comprehensive deepening of reforms in highly competitive industries. This underscores the Party and the state's high attention to the development of the automotive industry and their deep trust in Changan Automobile."

Zhu Huarong, Secretary of the Party Committee and Chairman of China Changan Automobile Group Co., Ltd.

As a new benchmark and sample for the reform of central enterprises in the automotive industry, Changan indeed has the confidence and courage. Originating from the Shanghai Foreign Artillery Bureau in 1862, Changan Automobile boasts a profound heritage and 163 years of accumulation. As one of the "pioneers" in China's automotive industry, Changan Automobile has adhered to innovation and change since its inception, undergoing three entrepreneurial phases and gradually evolving into an important force for the new rise of Chinese automobile brands today.

In terms of the R&D system, Changan has established a global collaborative R&D layout of "six countries and ten locations" with a technical R&D team of 24,000 people from 31 countries and regions. In the field of green development, Changan has successfully created three global digital intelligent new energy vehicle brands: Avitar, Deep Blue Automobile, and Changan Qiyuan. The cumulative production and sales of its independent brand automobiles have exceeded 28.99 million vehicles, with expectations to surpass 30 million vehicles this year. Over the years, Changan has always adhered to open cooperation, with China as its base, and has established a presence in five major regions: Europe, Southeast Asia, the Middle East and Africa, Central and South America, and Eurasia. It has 117 subsidiaries and branches and 21 manufacturing bases worldwide, with products exported to 103 countries and regions.

It's not just Changan employees who are brimming with confidence in the new Changan. Liu Yan, Deputy Secretary-General of the China Association of Automobile Manufacturers, attended the founding conference of China Changan Automobile Group on July 29 in her capacity as an industry organization representative and then the first media communication meeting after the founding the next day as the Editor-in-Chief of "Auto Review" magazine. After listening to Chairman Zhu Huarong's speech at the conference, she wrote on her WeChat Moments: "The new central enterprise, the new Changan, is brimming with opportunities and confidence!"

Liu Yan, Deputy Secretary-General of the China Association of Automobile Manufacturers and Editor-in-Chief of "Auto Review" magazine

Where does this confidence stem from? Liu Yan mentioned an anecdote shared by Deng Chenghao, CEO of Deep Blue Automobile, at the conference—the user positioning of "young users" once used by the Deep Blue brand was optimized by Chairman Zhu Huarong to "young-minded users." This subtle difference, in her eyes, holds the key to China Changan's promising future. She believes that the management team of Changan Automobile is a young team led by a "young-minded" leader, manifested in their "attitude"—actively learning, challenging oneself, and daring to stand at the forefront; "mentality"—fully devoted to the third entrepreneurial phase; and "state"—full of vitality, striving for new heights, and forging ahead. This sets the senior management team of Changan Automobile apart from the stereotypical and conservative leadership teams of central enterprises that people are accustomed to.

Liu Yan expressed her hope that the new team at China Changan can uphold the "young-minded" spirit throughout this new chapter.

A "New Engine" from Point to Area

The irreplaceability of China Changan Automobile Group also lies in its significant industrial layout and geographical location. As the third central enterprise in the automotive industry, China Changan Automobile Group has become a key member of Chongqing's "33618" modern manufacturing cluster, providing a new and powerful engine for the country's western development strategy. Simultaneously, China's automobile exports will embark on a new journey.

Chongqing has always been a crucial center for automobile manufacturing in China. In recent years, it has strived to build a "33618" modern manufacturing cluster system led by the intelligent connected new energy vehicle industry cluster, accelerating the construction of a world-class intelligent connected new energy vehicle industry cluster with a trillion-yuan scale. In the first half of this year, the added value of Chongqing's automobile industry increased by 8.4% year-on-year, with the added value of new energy vehicles increasing by 19.6% and the added value of auto parts and accessories increasing by 11.5%, demonstrating strong growth momentum in the industry. Besides scale, Chongqing has also formed an industrial system comprising 19 vehicle manufacturers and 1,200 parts and components enterprises above a designated size, achieving full coverage of the three major systems, 12 assemblies, and 56 components, providing full-chain support from vehicles to parts. More importantly, as one of the first pilot cities in China for intelligent connected vehicles to be granted access and allowed to travel on roads, Chongqing boasts both a "real test field" composed of mountainous terrain and complex traffic environments and a national-level Internet of Vehicles pilot zone in Chongqing (Liangjiang New Area). This advantage of "scenarios as productivity" is the best source of innovation in the automotive industry.

The settlement of the new central enterprise in Chongqing not only carries the country's deep expectations for the western development strategy and firm support for independent innovation in the western region but is also a dual planning and comprehensive layout to support the creation of a "world-class automobile group with global competitiveness and independent core technologies" and a "world-class intelligent connected new energy vehicle industry cluster."

But the significance extends beyond that. As a junction point of the Belt and Road Initiative and the Yangtze River Economic Belt, the logistics and operation organization center of the New Western Land-Sea Corridor, and the gathering center of China-Europe freight trains, Chongqing enjoys obvious location and transportation advantages, enabling it to build a more efficient logistics corridor for the "going overseas" of the automobile industry. The newly established China Changan Automobile Group can also rely on Chongqing's international logistics network to further strengthen the resilience of the global supply chain, thereby accelerating and intensifying the pace of "Chongqing automobiles going overseas."

In fact, China Changan Automobile has always firmly believed that "without going overseas, there is no Changan" and has unwaveringly pursued its global "All Rivers Run into the Sea" plan for many years. Today, Changan Automobile is comprehensively accelerating its expansion into five overseas regional markets: Southeast Asia, the Middle East and Africa, Central and South America, Europe, and Eurasia. It has globally planned 20 overseas factories in Brazil, Indonesia, etc., and has held 28 regional brand launch events in Europe, the Middle East and Africa, among other regions, with over 14,000 global channel outlets.

"We will rely on national strategies and continue to implement the global development plan of 'All Rivers Run into the Sea,'" said Zhao Fei, Deputy Secretary of the Party Committee and Director of China Changan Automobile Group Co., Ltd. (nominated as the candidate for General Manager of China Changan Automobile Group Co., Ltd.), at the media communication meeting. He said they will seize the favorable opportunity of the western "New Western Land-Sea Corridor" to build an international automobile export base with land-sea linkage. At the same time, they will take the lead in implementing the "Chongqing Automobiles Going Overseas" project, vigorously expand overseas markets such as Southeast Asia, the Middle East and Africa, and Europe, actively participate in and promote the formulation and connection of international standards, and turn China's automotive technological advantages into discourse power and core competitiveness in global market rules.

Zhao Fei, Deputy Secretary of the Party Committee and Director of China Changan Automobile Group Co., Ltd. (nominated as the candidate for General Manager of China Changan Automobile Group Co., Ltd.)

There is reason to believe that facing the future, China Changan Automobile will become the "core engine for industrial upgrading in the west," the "industry benchmark for technological self-reliance and self-improvement," and the "key bridge for global competition and cooperation."

A "New Chapter" in Building a Powerful Nation

The automotive industry integrates the triple characteristics of traditional automobile upgrading, new energy vehicle development, and future industry cultivation, undertaking the important mission of building a modern industrial system. There are boundless opportunities, but the responsibility and mission are arduous.

'Building a world-class automobile group with global competitiveness and independent core technologies.' Regarding this strategic position and goal, China Changan Automobile has clarified the direction and path: accelerating the promotion of the new energy "Shangri-La" plan, the intelligent "Beidou Tianshu" plan, and the global "All Rivers Run into the Sea" plan, continuously building the three major brands of Avitar, Deep Blue, and Changan, as well as the Chenzhi auto parts brand. Strengthening technological innovation, cultivating new productive forces such as intelligent automotive robots, flying cars, and embodied intelligence, and exploring a new three-dimensional travel ecosystem for land, sea, and air.

Zhu Huarong emphasized their firm commitment to constructing a "five new" Changan and striving to pen a new chapter for the company that reassures the nation and satisfies all societal sectors. Firstly, embracing a new mission: China Changan Automobile upholds the mission of forging a powerful automotive nation. It will steadfastly adhere to and reinforce the Party's overall leadership, establish a modern enterprise system with Chinese characteristics, continually develop international, market-oriented, and professional system capabilities, and foster a more comprehensive intelligent connected new energy vehicle industry system. The company will resolutely serve national strategies, implement the strategic blueprint for the Chengdu-Chongqing Economic Circle, deepen central-local government cooperation, drive western development, and unwaveringly strive to be the cornerstone in constructing Chongqing's "33618" modern manufacturing cluster system and creating a city renowned for intelligent connected new energy vehicles. Secondly, adhering to a new strategy: China Changan Automobile will expedite the promotion of the three major strategic initiatives: new energy "Shangri-La," intelligence "Beidou Tianshu," and globalization "All Rivers Run into the Sea." Thirdly, crafting a new automobile: Changan envisions the future automobile as an "evolvable intelligent automotive robot" and will innovate new energy products with superior offerings, distinguished brands, and pioneering innovation, constructing a full-spectrum new energy brand matrix and fortifying the layout of forward-looking technologies and emerging industries. Fourthly, fostering a new ecosystem: It will reinforce vertical integration within the industrial ecosystem and collaboration between the whole and parts, create a horizontally expanding technological ecosystem, and build a 1+1+N automotive travel ecosystem. Lastly, reinvigorating services: The focus will be on automotive finance, aftermarket, and factoring services, empowering intelligent proactive services with AI technology, creating a distinctive service DNA for the brand, and promoting the branding of the "Partner+" and "With U" service brands for the ToC end.

Notably, to cater to the diverse needs of users, China Changan Automobile has launched three global digital intelligent new energy vehicle brands: Avitar, Deep Blue Automobile, and Changan Qiyuan, which will synergize to achieve remarkable outcomes. Among them, Avitar, as a new central enterprise and luxury brand, will emphasize "high aesthetics, high intelligence, and high value" to fully establish itself as a leading global luxury intelligent electric vehicle brand. Deep Blue Automobile targets the mid-to-high-end mainstream new energy market, continuously providing technological and sporty fashion brands of pure electric/extended-range products priced between 150,000 and 300,000 yuan for global young-minded new energy users. Changan Qiyuan, positioned as an "intelligent mobile lifestyle home," will aim at mainstream family users, offering a new generation of products that integrate diverse life scenarios and provide exceptional cost-effectiveness, leading the new trend of intelligent mobile travel.

Since its inception, Changan has shared the same breath and fate with the country and nation. The grandeur of Gele Mountain, the boldness of the Jialing River, and the urban spirit of "tenacity, loyalty, openness, and striving to be the first" have forged Changan's spiritual core: "innovation and change, openness and inclusiveness, scientific rationality, and perseverance." By integrating advantageous resources, focusing on core technologies, deepening central-local government cooperation, and expanding the global market, China Changan Automobile Group, embarking on a new journey, will undoubtedly contribute more strength to comprehensively advancing Chinese-style modernization and realizing the aspiration of becoming a powerful automotive nation. Let's wait and see.

Image: Provided by the enterprise

Article: Auto Review

Typesetting: Auto Review