Investing billions in new energy, Changan Auto places its bets on Europe, navigating through the transformative pain and ambitious breakthroughs of an established automaker.

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Recently, an intriguing event unfolded in the automotive industry.

Changan's Yidong PHEV, with two new models priced at 56,900 yuan post-subsidies, entered the "same price for oil and electric" race. Actual testing reveals it can travel 1,360 kilometers on a full tank, costing just 0.27 yuan per kilometer.

These figures would typically trend on social media.

However, the launch event barely made a ripple, even among car enthusiasts.

Clearly, the product boasts solid performance and an attractive price, yet the market response is akin to boiling ice in Chongqing's fiery hotpot—it simply won't heat up.

Today, let's delve into why such a capable car had such a muted launch event, akin to the morning rush hour on the subway where everyone is in a hurry, with no one glancing up at the billboards.

The Launch Event Became a "Dud"

The Yidong PHEV's Smart New Blue Whale 3.0, i-EM energy management, and other technologies are indeed impressive, offering 1,360 kilometers on a full tank, 145 kilometers of pure electric range, and a cost of 0.27 yuan per kilometer.

However, the event was overly focused on engineering jargon. Terms like "P1+P3 dual-motor architecture" and "all-domain smart series-parallel control" left ordinary consumers utterly confused, even requiring car reviewers to spend half a day researching to explain them clearly.

The 10-layer Hairpin flat wire oil-cooled motor, repeatedly emphasized at the launch, might appeal to tech enthusiasts, but ordinary people wonder, "Will this reduce my charging or refueling costs?" Instead, straightforward phrases like "one tank of gas from Chongqing to Shanghai" resonate more with users' pain points.

The event's pace was chaotic, lacking both buildup and afterthoughts. There were no "price guessing" or "blind endurance tests" to pique interest beforehand, nor post-event investments in owner store visits or long-term test broadcasts. In contrast, Xiaomi's SU7 generated buzz daily from preheating to launch, even with Lei Jun's shoes trending on social media.

Beyond the technical parameters being too complex, the launch channels were too specialized, rendering them inaccessible to younger audiences. Search results show the launch event information concentrated mainly on automotive vertical media (Pacific Auto, Sohu Auto) and brand official accounts, with little movement on platforms popular among youth like Douyin and Xiaohongshu.

Compared to BYD's new car launches, where top car reviewers' test videos and comedians' secondary creations dominated trending search lists, Yidong PHEV's promotion stuck to the old routine of press releases and 4S store posters. For instance, with impressive data like 1,360 kilometers of endurance, an influencer-organized 48-hour province-wide challenge without charging would have generated substantial traffic.

The "same price for oil and electric" starting at 56,900 yuan post-subsidies is indeed aggressive, but similar slogans have long been echoed by BYD's Qin PLUS DM-i and Wuling Xingguang PHEV. Yidong PHEV, with a user base of 1.8 million and endurance surpassing peers, merely brands itself as a national family sedan, making users perceive it as the old Yidong with a hybrid swap.

While Ideal Automobile stood out with the "dad car" label, today's Yidong PHEV could easily leverage more relatable marketing personas like "the first hybrid for workers" or "affordable with a monthly salary of 3,000 yuan."

In summary, Yidong PHEV's quiet launch wasn't due to a lack of product strength but to promotional shortcomings. In the fiercely competitive new energy era, stacking parameters is less effective than speaking in plain language, and spending on channels is less impactful than creating engaging topics. Rather than indulging in the vertical circle, it's better to etch the label of a "tested supercar" into users' minds.

Technological "Great Leap Forward"

With the domestic new energy vehicle penetration rate consistently exceeding 50%, automakers are transforming, including Changan Auto.

Zhu Huarong, Party Secretary and Chairman of Changan Auto, recently announced that the company will invest 250 billion yuan in new energy R&D over the next three years, encompassing solid-state batteries, flying cars, and intelligent driving.

The goal is to enter the world's top tier of the automotive industry by 2030.

The vision is grand, yet Changan's path may not be smooth.

According to official data, Changan Auto's cumulative terminal sales in 2024 reached 2.68 million vehicles.

While the official interpretation highlights five consecutive years of positive year-on-year growth, setting a new high in the past seven years, compared to autonomous brands like Geely, BYD, and Chery, Changan Auto's growth rate is notably lower, indicating it's still playing catch-up.

In new energy vehicle transformation, Changan has deployed three sub-brands: AVATR, SL03, and Qiyuan.

AVATR, targeting the high-end market, has struggled with weak market presence, with monthly sales barely exceeding 5,000. Despite design awards, users complain about its unaffordability and high repair costs.

Changan Qiyuan, featuring the Transformer E07 that transforms into a campervan, has also seen flat sales. Last year, it set a sales target of 250,000 vehicles but failed to achieve even half of that.

Only SL03 has emerged as the mainstay. Relying on super-range-extending technology, SL03 entered the competitive 150,000-200,000 yuan price range, delivering 243,900 vehicles in 2024.

In the first two months of this year, Changan sold 107,100 new energy vehicles, with February sales soaring 68.4% year-on-year to 39,700 vehicles, bringing the group's new energy penetration rate to 24.6%.

However, behind the sales growth lies a hidden challenge—falling into the vicious cycle of increasing revenue without profit growth. In the first nine months of last year, the group's total operating income was 110.96 billion yuan, up 2.54% year-on-year, but net profit plummeted 63.78% year-on-year to 3.58 billion yuan.

This outcome is not unexpected. With the price war intensifying, SL03 was forced to officially reduce its price by 30,000 yuan to maintain sales, and AVATR offered lifetime warranty and free charging, all compressing Changan Auto's profit margins.

Zhu Huarong remains optimistic: "Losing money now is to earn money in the future. The mass production of solid-state batteries in 2027 will be the turning point."

Changan's bet on "invincible armor" solid-state batteries promises an 80% fast charge in 12 minutes, a comprehensive endurance of 1,500 kilometers, and a 70% improvement in safety performance, with planned mass production in 2027. Combined with Huawei's intelligent cockpit and supercharging technology, it theoretically eliminates range anxiety.

However, whether it can be mass-produced as scheduled remains to be seen.

Beyond solid-state batteries, Changan is also targeting the European market. At the Munich launch event on March 21, SL03 arrived in Norway with the Red Dot Design Award and Tianshu intelligent driving system, with deliveries scheduled for May and a pledge to establish 1,000 outlets in Europe.

This move is impressive, but going abroad isn't about easy money. If the EU includes automobiles in the carbon tariff scope after 2026, export costs will significantly increase, not to mention facing competition from local giants like Volkswagen and Stellantis.

Reorganization: Changan May Be the One That Gets Eaten

Amidst the unprecedented transformation in the automotive industry, domestic automakers are accelerating internal competition, with the capital market buzzing with recent moves by Changan Auto.

On February 9, Dongfeng and Changan, two major automakers, announced through their listed companies that their controlling shareholders were planning a reorganization with other state-owned central enterprises.

While mergers and acquisitions are expected in the Chinese automotive industry's elimination of weaker brands, it was surprising to see Dongfeng and Changan take the lead.

Dongfeng, Changan, and FAW are China's three central automotive enterprises. From the perspective of new energy transformation and autonomous brand development, Changan Auto is the frontrunner among the three, with the strongest development momentum in recent years.

Of Changan Auto's 2.68 million sales in 2024, autonomous brands accounted for 2.2265 million vehicles, autonomous passenger vehicles sold 1.668 million, overseas sales were 536,200, and new energy sales totaled 734,600. In terms of group sales, Changan has surpassed Dongfeng since 2023, ranking ahead of Dongfeng Group in the industry.

At the same time, Changan is the most open-minded. AVATR has embraced Huawei to upgrade to HI Plus mode, SL03 has collaborated with CATL to develop battery systems, and Qiyuan has explored smart home interconnectivity.

However, these conclusions are based solely on the passenger vehicle sector. Dongfeng started with heavy trucks, and over the years, the commercial vehicle business has accounted for about 20% of the group's sales but contributed about 60% of the total revenue.

In other words, Dongfeng's overall scale is still larger than Changan Auto's, with stronger comprehensive strength.

More critically, Dongfeng is a deputy ministerial-level unit directly managed by the State-owned Assets Supervision and Administration Commission (SASAC), one corporate level higher than Changan Auto's departmental level.

Rumors suggest Dongfeng is likely to dominate this reorganization, casting uncertainty over Changan Auto. Based on past mergers and acquisitions in China's automotive industry, the merged party often faces an unfavorable outcome. Will Changan Auto maintain its current momentum? Brand internal friction and cultural conflicts are significant challenges.

If successful, Changan could become a benchmark for the reform of Chinese state-owned automotive enterprises; if not, it may fall into the dilemma of being "big but not strong".