Deepal, the new energy vehicle (NEV) brand under Changan Automobile, has acquired a former Hyundai plant in China, marking another instance of domestic manufacturers taking over idle joint-venture capacity, according to a report from The Economic Observer.
The Chongqing factory, previously operated by Beijing Hyundai, has been rebranded under Deepal and is expected to support future production expansion, though operations have not yet resumed.
See also: Changan Sets 2030 Target for 50 New NEVs and Expands Global Sales Ambitions
The Chongqing facility was Hyundai’s fifth plant in China and began operations in 2017 following an investment of RMB 7.7 billion ($1.1 billion). Spanning 1.87 million square meters, it had an annual capacity of 300,000 vehicles but ceased output in December 2021.
The plant was later sold to a state-owned company in Chongqing for RMB 1.62 billion at the end of 2023. Changan recorded a production capacity of 2.25 million units in 2024 with an 84 percent utilization rate, and its target of selling three million vehicles in 2025 is expected to place additional pressure on current facilities.
See also: Changan’s Nevo Launches Updated Q05 Electric SUV With RMB 79,900 Starting Price
The takeover reflects a broader trend in China’s automotive market as foreign joint-venture manufacturers continue to scale back local operations amid shifting demand. Hyundai has offloaded multiple Chinese plants in recent years, including its No. 1 Beijing factory, which Li Auto acquired in 2021.
The pattern has continued across the industry, with Geely’s Galaxy brand recently linked to the takeover of a former SAIC–General Motors plant in Shenyang. Industry analysts note that while domestic brands divested capacity several years ago, the bulk of idle facilities today belong to joint-venture automakers as competition intensifies in the NEV segment.