Chinese automaker Changan has officially become a centrally administered state-owned enterprise (SOE), aligning it with leading state-controlled automakers such as FAW Group, SAIC Motor, and Dongfeng Motor. The change follows the formal registration of China Changan Automobile Group Co with 20 billion yuan ($2.8 billion) in capital and oversight from the State-owned Assets Supervision and Administration Commission (SASAC), Auto-home reported.
Previously a subsidiary of China South Industries Group, Changan’s transition to central SOE status marks a restructuring of its ownership and governance. The company will now operate independently under central government control. Zhu Huarong, formerly CEO of Changan Automobile, has been registered as the legal representative of the new entity and is expected to retain a senior leadership role.
While the company has yet to disclose specific strategic changes, the realignment could enhance access to state financing and influence corporate decisions, particularly in overseas markets. A press conference scheduled for July 30 may offer further details. Earlier this year, speculation emerged about a potential merger between Changan and Dongfeng following parallel organizational shifts, although no confirmation has been provided.
Changan’s elevation comes as China tightens control over state capital amid geopolitical tensions. Reports have indicated that Beijing has barred SOEs from investing in European Union countries supporting tariffs on Chinese electric vehicles (EVs). Changan recently cancelled a planned launch in Milan, rescheduling the event for March in Mainz, Germany. Italy supported the tariffs; Germany did not.
Changan plans to introduce its Deepal, Avatr, and Changan brands to Europe, beginning with markets such as Norway, Denmark, Germany, the UK, and the Netherlands. The initial offering includes the Deepal S07, expected to retail at around €45,000, followed by the S05. A new production facility in Europe is also under consideration, though specific site locations have not been revealed.