Changan to Integrate EV Brands’ Back-End Operations to Cut Costs
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Chongqing Changan Automobile Co. Ltd. plans to integrate the research and supply chains of its two new-energy vehicle brands to cut costs by as much as 30%.
The consolidation involves Avatr and Deepal, which will retain separate brands while pooling back-end resources to reach a combined annual sales target of 1.5 million vehicles by 2030.
The move reflects a broader wave of consolidation sweeping China’s fiercely competitive electric-vehicle sector, where carmakers are merging sub-brands to achieve the scale needed to withstand a prolonged price war and shrinking margins.
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- Changan to integrate Avatr and Deepal back-end resources, cutting costs up to 30%; combined sales target 1.5M vehicles by 2030.
- Chairman Zhu: automakers need 3M annual sales to survive; Changan targets 4M globally. Deepal: 325k sales, 900m yuan loss; Avatr: 123k sales, 1.59b yuan H1 2025 loss.
- China EV consolidation trend; Avatr plans HK IPO.
- Chongqing Changan Automobile Co. Ltd.
- Chongqing Changan Automobile Co. Ltd. plans to integrate research and supply chains of its EV brands Avatr and Deepal, cutting costs by 30% and targeting 1.5M combined sales by 2030. Chairman Zhu Huarong eyes 4M global sales. Both brands are unprofitable; Changan holds 51% in Deepal, 41% in Avatr. It will trim models from 63 to 36 amid China's EV consolidation. (68 words)
- Avatr
- Avatr, Changan's EV brand, is integrating R&D and supply chains with Deepal to cut costs 30%, targeting 1.5M combined sales by 2030 while keeping brands separate. Sold 123,000 units last year; H1 2025 loss: 1.59B yuan. Plans HK IPO; Changan owns 41%, CATL second-largest shareholder. (62 words)
- Deepal
- Deepal, a new-energy vehicle brand under Changan, will integrate research and supply chains with Avatr to cut costs by 30%, targeting 1.5 million combined sales by 2030. It sold 325,000 vehicles last year, posting a 900 million yuan ($132M) net loss, and missed 2025 targets. Changan holds a 51% stake. Brands remain separate.
- Contemporary Amperex Technology Co. Ltd.
- Contemporary Amperex Technology Co. Ltd. (CATL) is the second-largest shareholder in Avatr, where Changan holds a 41% stake.
- Zhejiang Geely Holding Group Co. Ltd.
- Zhejiang Geely Holding Group Co. Ltd. led the trend of sub-brand consolidation in September 2024 by integrating its Lynk & Co and Zeekr brands under Geely Automobile Holdings Ltd.
- Geely Automobile Holdings Ltd.
- Zhejiang Geely Holding Group integrated its Lynk & Co and Zeekr brands under Geely Automobile Holdings Ltd. in September 2024, leading the trend of sub-brand consolidation in China's competitive EV sector.
- SAIC Motor Corp. Ltd.
- SAIC Motor Corp. Ltd. has created a unified passenger-vehicle division to coordinate its brands, as part of China's EV sector consolidation trend.
- Guangzhou Automobile Group Co. Ltd.
- Guangzhou Automobile Group Co. Ltd. has merged the research and supply chains of its Aion and Hyper brands, as part of China's EV sector consolidation trend.
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