New Changan Automobile Group Established in Chongqing

On July 29, China Changan Automobile Group Co., Ltd. was officially established in Chongqing. The 'New Changan Automobile Group' (hereinafter referred to as 'New Changan') is a newly formed central enterprise focusing on the automotive sector, centered around Changan Automobile, after being spun off from the China Weaponry Equipment Group. It encompasses 117 subsidiaries. The establishment of New Changan marks a significant step in the professional integration of central enterprises and is an important measure to enhance the competitiveness of China's automotive industry. New Changan's formation adopted a 'surgical knife' asset cutting plan, separating the automotive sector centered around Changan from the weaponry equipment group, while related military assets were injected into the China Ordnance Industry Group. This arrangement aligns with the reform direction of central enterprises focusing on their main businesses and clarifies the asset attributes for Changan Automobile to fully commit to the new energy vehicle sector. In terms of shareholding structure, the controlling shareholder of New Changan has changed from the China Weaponry Equipment Group to the newly established automotive central enterprise, with the actual controller remaining the State-owned Assets Supervision and Administration Commission (SASAC), ensuring the stability of the shareholding structure. This 'change without change' design meets the policy requirements for central enterprise reform and avoids the impact of significant shareholding changes on market confidence, laying a foundation for a smooth transition. Notably, after the establishment of New Changan, the management reporting levels will be shortened. Previously, major R&D decisions of Changan Automobile required multi-level approval from the weaponry equipment group, but under the new structure, they can directly connect with relevant functional departments of SASAC, significantly enhancing the R&D and market responsiveness of new models. The inclusion of New Changan also completes the landscape of state-owned automotive enterprises in China. Currently, the 'FAW-Dongfeng-New Changan' system of state-owned 'three giants' possesses the foundational capabilities to compete with international automotive groups in terms of asset scale, production capacity, and technological reserves. For Changan Automobile itself, this restructuring brings three strategic benefits: in brand positioning, as a core asset of the new central enterprise, its image as a 'national team' in the automotive sector will be further strengthened; in terms of profitability, after divesting non-automotive assets, the company can focus on value extraction within the automotive industry chain; and in terms of technological reserves, New Changan will integrate existing technological assets such as Changan Automobile's power platforms and pure electric platforms, accelerating the industrialization of cutting-edge technologies. The head of China Changan Automobile Group stated that the new central enterprise will focus on developing intelligent automotive robots, flying cars, and embodied intelligence as new productive forces, exploring a new ecological model for three-dimensional travel across land, sea, and air, while accelerating global development and expanding into Southeast Asia, the Middle East and Africa, Central and South America, Eurasia, and Europe.