Changan Automobile Co has officially restructured into an independent automaker, which is directly overseen by China's central government, according to a report by the state broadcaster CCTV News on Tuesday.
It will be the third centrally-administered automotive behemoth supervised by the State-owned Assets Supervision and Administration Commission (SASAC) under the State Council, following FAW Group and Dongfeng Motor.
The newly restructured firm, previously a subsidiary of state-owned China South Industries Group Corp, was formally established in Southwest China's Chongqing Municipality.
With 117 subsidiaries under its umbrella, the automaker will prioritize advancements in smart vehicles, robotics, flying cars, and embodied intelligence, among other cutting-edge manufacturing fields.
Additionally, Changan plans to accelerate its global expansion, targeting key markets such as Southeast Asia, the Middle East, Central and South America, and Europe, the report said.
Chinese experts said that the restructuring marks a significant step in China's efforts to advance the reform of central state-owned enterprises (SOEs) and optimize the layout of state-owned capital. It also serves as a crucial measure to enhance the competitiveness of China's automotive industry.
Latest data showed that Changan Automobile sold a total of 1.355 million vehicles in the first half of this year. Notably, its new energy vehicle (NEV) sales reached 450,000 units during this period, representing a year-on-year increase of 48.8 percent.
In February, Chinese automakers Dongfeng Automobile and Changan Automobile announced restructuring plans of their controlling shareholders, both of which are centrally administered state-owned enterprises (SOEs).
Zhang Yuzhuo, chairman of the SASAC, said in March 2024 on the sidelines of the "two sessions" in March that the commission would adjust policies to conduct separate assessments of the NEV operations of the three state-owned automakers. The assessment criteria would include technology, market share and the future development of the enterprises, according to caixin.com.
