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Author | Chai Xuchen
Editor | Wang Xiaojun
Since the launch of the Cyrus, the automotive power in Chongqing has once again pressed the fast-forward button.
On December 10, with the rollout of an Avita 12, CHANGAN AUTOMOBILE officially joined the 30 million vehicle club, becoming the third domestic automaker to achieve this milestone after SAIC-GM-Wuling and FAW-Volkswagen.
In the automotive industry, scale is often an indicator of a company's manufacturing capability, supply chain management level, and market recognition. Previously, companies that could cross the ten million threshold mostly relied on joint venture brands.
Unlike the first two, CHANGAN, which started with microcars, has fully exploded into sedans and SUVs, and now has made a strong breakthrough in the new energy sector. In recent years, the contribution rate of its independent sector has been continuously rising during structural adjustments.
It is understood that it took CHANGAN 30 years to go from the first vehicle to the one millionth; 7 years to reach 20 million; and less than 5 years to cross from 20 million to 30 million.
It can be said that independent brands and new energy have become the propellants for CHANGAN. Chairman Zhu Huarong decided to seize the opportunity, boldly stating that the company aims to achieve an annual production and sales volume of 5 million vehicles in five years. If we follow last year's global automaker sales rankings, CHANGAN could become a TOP 5 player in five years, truly becoming an automotive giant.
In fact, CHANGAN's rapid progress is not difficult to understand. One of the most notable changes this year has been the significant adjustment of its equity structure and management system, establishing a market positioning as a &#34;new central enterprise.&#34;
For a long time, state-owned automakers have often been constrained by long decision-making chains and insufficiently flexible mechanisms when facing the rapidly changing new energy battlefield. With the conclusion of the three-year action plan for state-owned enterprise reform, CHANGAN AUTOMOBILE has gained greater autonomy in management authority, incentive mechanisms, and asset restructuring.
After its &#34;upgrade,&#34; CHANGAN quickly pressed the &#34;fast forward&#34; button for strategic transformation. In responding to price wars and technology route choices, CHANGAN's reaction speed is noticeably faster than that of other large state-owned automotive groups. This has been particularly evident in the new energy sector.
CHANGAN AUTOMOBILE director Zhang Deyong revealed that Deep Blue achieved monthly breakeven last year, and it is expected that a monthly sales volume of 30,000 vehicles could lead to full profitability, which has now been achieved; although Avita is still in the investment phase, it plans to reach breakeven by 2026, with a relatively clear timetable.
From the perspective of operational efficiency, the &#34;Nirvana&#34; special action launched by CHANGAN last year has driven a 20% year-on-year improvement in profitability for its new energy business. Zhu Huarong previously stated that the most intensive phase of R&amp;D investment may have passed, and the company will gradually enter a period of output returns from R&amp;D investments in the future.
For CHANGAN, after establishing a foothold in the extremely competitive automotive market, the next challenge is whether it can continue to defend its position and accelerate its breakthrough in an environment where competitors frequently launch attacks, which is a must-answer question for this new central enterprise.
According to Zhu Huarong's plan, in the goal of 5 million vehicles by 2030, new energy is expected to contribute over 60% of the performance, with a target of achieving 1 million units this year, and the overseas contribution ratio should exceed 30%. CHANGAN's breakthrough route has become clear, with the &#34;Shangri-La&#34; plan representing new energy, the &#34;Beidou Tian Shu&#34; plan representing intelligence, and the global &#34;Haina Baichuan&#34; plan becoming top priorities
Currently, CHANGAN has built a matrix of five major brands, among which Avita is positioned as high-end, covering the mainstream high-end market of 200,000 to 700,000 yuan; Deep Blue targets the younger demographic, with monthly sales already exceeding 30,000 units; Qiyuan aims at mainstream family users, with single-month sales surpassing 46,000 units in November; the CS75 series under CHANGAN has accumulated sales of over 2.8 million units; and CHANGAN Kaicheng has become the sales champion in the new energy microbus market.
From a global perspective, CHANGAN Automobile has completed its overall layout in six major global regions: Southeast Asia, the Middle East and Africa, Central and South America, Europe, China, and Eurasia, with 14 manufacturing bases and 34 factories worldwide, and products exported to 77 countries and regions. In addition, 20 KD factories have been planned, with 11 KD projects currently underway in Kazakhstan, Egypt, and other locations, collectively providing an overseas production capacity of 500,000 vehicles.
Moreover, just before the rollout of its 30 millionth vehicle, CHANGAN Automobile announced a deep strategic cooperation with JD.com, which is seen as an important move in its marketing and service ecosystem.
In the current context where traditional car sales models are facing bottlenecks and traffic costs are rising, relying on JD.com's logistics system and supply chain management capabilities, CHANGAN can further optimize the logistics of parts and the efficiency of vehicle delivery, reducing inventory costs, which is crucial for car manufacturers with annual production and sales of millions of vehicles. The cooperation between the two parties is likely to extend to the smart cockpit ecosystem and automotive aftermarket services.
Although the achievement of 30 million vehicles is impressive, we must recognize the hidden concerns behind CHANGAN Automobile's glory.
First is the weakness in the joint venture sector. Once profitable cash cows, CHANGAN Ford and CHANGAN Mazda are struggling in the transition to electrification, with their sales contribution rate declining year by year. How to handle the large production capacity of fuel vehicles will be a question CHANGAN needs to consider in the coming years. In the context of normalized price wars, how CHANGAN can maintain market share while improving the gross profit margin per vehicle is a must-answer question on the financial statements.
Finally, there are challenges in globalization. Although CHANGAN has launched the &#34;Inclusive of All Rivers&#34; plan, in the Southeast Asian markets it is heavily betting on, Japanese brands still hold an absolute dominant position, accounting for 78%. CHANGAN Automobile plans to enter with high-end brands like Deep Blue and Avita, which requires addressing key issues such as insufficient charging infrastructure and differences in consumer perception.
Looking back, standing at the milestone of 30 million vehicles, CHANGAN Automobile demonstrates a rare vitality and competitiveness for an established state-owned enterprise. From the renewal of the &#34;new central enterprise&#34; mechanism to Avita's capital sprint, and the partnership with JD.com for ecosystem expansion, CHANGAN is constructing a new survival rule set that adapts to the era of smart electric vehicles.
For CHANGAN Automobile, the road ahead will be a comprehensive contest of brand premium, technological innovation, and global operations. This 30 million will become its ticket to the next, more brutal final showdown

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New central enterprises are racing at high speed

CHANGAN AUTOMOBILE joins the 30 million vehicle club