Changan Automobile

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Chang'an Automobile (Group) Co., Ltd.
Company typeState-owned
ISINCNE000000R36 Edit this on Wikidata
IndustryAutomotive
Founded1862; 162 years ago (1862)
Headquarters,
China
Area served
Worldwide
ProductsMotor vehicles
Production output
1,900,000 units (2021) [1]
ParentChina South Industries Group
SubsidiariesChangan UK R&D Centre Ltd.
Chinese name
Simplified Chinese重庆长安汽车股份有限公司
Traditional Chinese重慶長安汽車股份有限公司
Literal meaningChongqing Chang'an Automobile Joint-stock Limited Corporation
Websiteglobalchangan.com

Chang'an Automobile Co., Ltd.[2] is a Chinese state-owned automobile manufacturer headquartered in Jiangbei, Chongqing.[3] Founded in 1862, it is China’s oldest automobile maker.[4][5] It is currently the smallest of the "Big Four" state-owned car manufacturers of China, namely: SAIC Motor, FAW Group, Dongfeng Motor Corporation, and Changan Automobile, with car sales of 5.37 million, 3.50 million, 3.28 million and 2.30 million in 2021 respectively.[6]

The company produces and sells vehicles under its own branding, such as Changan, Oshan, Kaicene, as well as under foreign-branded joint ventures such as Changan-Ford and Changan-Mazda. In 2021, domestic branded cars took over 76% of sales (1.75m, 1.2m passenger vehicles).[7]

Its principal activity is the production of passenger cars, microvans, commercial vans and light trucks.[8]

It is China's second most popular car brand, with 1.4 million Changan cars sold in 2016.[9] A subsidiary of Changan, Chongqing Changan Automobile Company (SZSE: 000625), is listed on the Shenzhen Stock Exchange (but is also state controlled).[3]

History

Changan's early origins can be traced back to 1862 when Li Hongzhang set up a military supply factory, the Shanghai Foreign Gun Bureau.[10] It is China’s oldest automobile maker.[5] In 1937, during the Second Sino-Japanese War, the factory was moved to Chongqing when Shanghai was invaded and bombed.[11]

In 1959 a predecessor entity, Chongqing Chang'an Arsenal, under contract to the government, began auto manufacturing and built Changjiang Type 46 vehicle which was the first production vehicle of China.[12] Changan introduced minicar by licensing from Suzuki.[13]

In 2009, Changan acquired two smaller domestic automakers, Hafei and Changhe.[14] In 2013, Changhe was transferred to Jiangxi provincial government for restructuring, and later became a majority-owned subsidiary of another Chinese automaker BAIC Group.[15]

As of 2010, China Weaponry Equipment is the parent company of this state-owned automaker,[16] and that year Chang'an became the fourth most-productive car manufacturer in the Chinese automobile industry by selling 2.38 million units.[17]

The company also released a new logo for its consumer offerings in 2010 while commercial production retains the former red-arch brand.[8]

Although it only allowed the company to achieve fourth place among domestic automakers in terms of production, Changan made over 2 million whole vehicles in 2011.[18]

In 2012, it was reported that 72% of production was dedicated to passenger vehicles,[19] but this count likely conflates private offerings and microvans, tiny commercial trucks and vans that are popular in China.

In November 2012, Changan Ford Mazda Automobile was divided into two new joint venture companies: Changan Ford and Changan Mazda.[20]

Changan plans to cease production of vehicles powered solely by internal-combustion engines by 2025. The automaker will only sell plug-in hybrid vehicles and all-electric vehicles from 2025 as a result. The company stated that this is because Government of China announced that it has passed legislation that will ban new ICE-powered vehicles by the mid 2030s, due to high air pollution and due to China's reiterated commitment in the United Nations Paris Agreement as the automaker wants remain compliant with the government's automotive emission standards. The automaker is joining Volvo Cars, Jaguar Land Rover, Hongqi, BYD Auto, Lotus Cars, and several other automakers in planning on ceasing production of ICE-powered vehicles in the coming years.[21]

Changan said it plans to launch 21 electric cars in the 2021–2025 period, increasing its sales of that kind of vehicles to over 1 million units.[22]

Brands and products

Changan produces and markets vehicles primarily under three brands:[23]

  • Changan for premium SUVs and passenger cars
  • Shenlan for electric vehicles
  • Oshan (frequently transliterated as Auchan, Ossan, or Oushan) for mid-level SUVs and MPVs
  • Kaicene for the commercial vehicles, light trucks, and MPVs

Changan also develops premium electric vehicles under the Shenlan brand from 2022, with the first vehicle of the brand being the SL03, codenamed C385 during development phase.

The group previously launched another premium electric vehicle brand in conjunction with Huawei and CATL called Avatr in the end of 2021.[24]

Changan

Current models

Former models

Changan Shenlan

Vehicles using Changan EPA NEV platform, separated into EPA0, EPA1 and EPA2. Five initial models will be released, 1 based on EPA0 and 4 based on EPA1.[26]

Current models

Changan Oshan

Current models

Changan Kaicene

Current models

Former models

Joint ventures

Like most major Chinese automakers, Changan partners with Western and Japanese companies to produce and sell the products of these foreign firms in China. It also partners with other companies within China to augment manufacturer capacity and share development costs.

Changan currently participates in the following joint ventures:

Changan Ford (2001–present)

A Chinese police Ford Focus, 2007

In 2001, Chang'an Ford was formed[31] and initially built Ford-branded passenger vehicles from complete knock down kits.[12]

Making Chinese-market versions of Ford consumer offerings,[8] its 2010 dealer network was thought to include many showrooms in second- and third-tier Chinese cities[citation needed] such as Chongqing.[32] So-called second- and third-tier cities are large and medium-sized cities not among the top four in terms of population and contribution to GDP.[33]

Changan Mazda (2012–present)

Changan Kuayue

Chongqing Kuayue Automobile is a co-operative venture between Changan and Chongqing Kuayue Group specializing in commercial vehicle production.[34]

The group builds commercial vehicles for Changan primarily under the Kuayue and Kaicene brands.

Current models

Former models

Avatr Technology

Avatr Technology is a replacement for the Changan-Nio New Energy Automotive Technology joint-venture (with Nio), with battery provider CATL and Huawei involved instead. In November 2021, the firm revealed an electric SUV called the Avatr 11.[36]

Jiangling Motors

Jiangling Motor Holding Co. Ltd. (simplified Chinese: 江西江铃控股有限公司; traditional Chinese: 江西江鈴控股有限公司; pinyin: Jiāngxī Jiānglíng Kònggǔ Yǒuxiàn Gōngsī), also known by the initialism JMH, was a joint venture established in October 2004 and controlled equally by Changan and JMCG. To create Jiangling Motor Holding Changan invested money and in exchange JMCG transferred its Jiangling Motors Corporation (JMC) equity to the venture. Jiangling Motor Holding was the largest shareholder of JMC,[37] with a 41.03% stake as of March 2018.[38] JMH also owned the Landwind marque.[37][39]

In April 2019, it was announced that JMCG and Changan planned to split JMH into two separate companies: one keeping the same name and other tentatively called Jiangling Investment. Jiangling Investment would hold the 41.03% JMC stake and some liabilities and would still be equally owned by Changan and JMCG. The new JMH would own the rest of the former JMH assets (including Landwind)[40][41] and it would issue 100% more shares to be sold to investors, leaving JMCG and Changan with a 25% stake each.[41] Jiangling Investment was formally established in May 2019, completing the split of the former JMH.[42] In June 2019, it was announced that the investor for the new JMH was the car manufacturer Aiways. Aiways acquired a 50% of the new JMH with the aim of securing production permits for new energy vehicles.[43][44]

Former

Changan PSA

DS 5LS

Changan and the French car manufacturer PSA Peugeot Citroën agreed in 2010 to set up a 50/50 passenger car and light commercial vehicle-making joint venture.[45] Named CAPSA, it was the PSA Group's second joint venture company in China, after Dongfeng Peugeot-Citroën Automobile, and its first with Chang'an.[46] Centering on a newly built production base in Shenzhen, it was estimated that initial production capacity for the project will be 200,000 units/year.[47] Manufacturing commenced in 2014, with China specific Citroën DS models; the DS 5LS first and then the DS 6WR.[48] The venture was dissolved in 2020.

Changan Suzuki

Chang'an Suzuki SC7080 Alto

Technical and commercial cooperation with Suzuki Motors, beginning in 1983, saw Changan assembling inexpensive commercial trucks (originally the Suzuki Carry ST90 as the Chang'an SC112[49]) under license into the 2000s.[50] The two companies formed Chongqing Chang'an Suzuki Automobile Co in 1993,[31] which built licensed versions of the Suzuki Alto, Suzuki Cultus, and more recently the Swift.

In parallel with its Suzuki joint venture, Changan also continued to build small trucks and vans for commercial use based on the 1999 Suzuki Carry license, but independently developed vehicles are quickly replacing them.[50] These small cars carry the Changan brand name although Suzuki technology is used in their design and manufacture.

On 4 September 2018, Suzuki transferred its 50 percent stake in Changan Suzuki to Chang'an Automobile Group, ending 25 years of joint venture. Under the plan, Chang'an would continue to make and sell Suzuki-branded cars in China under license.

In 2021, Changan Suzuki was renamed to Chongqing Lingyao Automobile.[51]

Production and research facilities

Domestic

Changan has four major production bases (in the City of Chongqing, Hebei province, Jiangsu province, and Jiangxi province),[citation needed] eleven automobile production bases, and two engine production bases in mainland China[52] for a more-current total of 21 vehicle-making bases including newer sites in Anhui province, Guangdong province, Heilongjiang province, Shandong province, and Shanxi province.[citation needed]

Anhui

A planned 300,000 units/year capacity mini-vehicle production base in Hefei, Anhui province, should see completion in 2011.[citation needed] Production capacity figures may consider engines and vehicles as discrete.

Beijing

An existing R&D center in Beijing[53] will soon be joined by a passenger car production base in Fangshan District, Beijing, which will become operational in 2012.[citation needed]

Chongqing

Chang'an has numerous sites in the city of Chongqing. A Chang'an-Ford plant and another, planned Chang'an-Ford plant (which may produce engines[54]) are joined by a Chongqing-based R&D center[53] and an industrial park in Yubei, Chongqing.[citation needed]

Hebei

An industrial park in Hebei province may continue to be Chang'an controlled.[citation needed]

Heilongjiang

A Harbin, Heilongjiang province, R&D center, is now a Chang'an asset.[53] It may have been owned by Hafei prior.

Jiangsu

A Chang'an-Ford plant and an industrial park[citation needed] in Nanjing, Jiangsu province, may comprise Chang'an operations in this province.

Jiangxi

A planned Chang'an commercial vehicle production base in Nanchang, capital of Jiangxi province, will produce JMC and Ford-branded vehicles[54] and join an R&D center[53] as a second facility in this province. The latter facility may be a former Changhe asset.

Shanghai

Chang'an has an R&D center in this coastal city.[53]

International

The company maintains four factories in international markets and several overseas R&D centers. Chang'an had an assembly plant in Poteau, Oklahoma, piecing together products sold under the Tiger Truck brand from 2007 to 2010.[55] The Changan CS35 is built in Lipetsk region of Russia since 2016.[56] Also Changan vans and pickup trucks were assembled at Ganja Auto Plant in Ganja city, Azerbaijan in 2005.

Karachi

Changan has built a production facility in Karachi Pakistan. A joint venture with Master Motors with an investment of US$100 million. This plant will make right hand drive passenger vehicles for Pakistan as well other right hand drive markets. First Made in Pakistan unit of Changan rolled out on 2 May 2019. With a manufacturing capacity of 30,000 cars per year this facility will be Changan's first to produce right hand drive cars.

R&D centers

Chang'an has over 7,000 engineers and researcher working in R&D facilities in Chongqing, Beijing, Shanghai and Harbin,[10] Turin, Italy,[53] and Yokohama, Japan.[53] It set up two more in 2011. These are located in Birmingham (originally was set up in Nottingham), United Kingdom, and Detroit, United States.[57] The Detroit center opened in early 2011, and its office was moved from Nottingham to Birmingham 2015.[58][59]

References

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External links