Changan Automobile: Expanding into Europe
Changan Automobile, a prominent player in China’s automotive industry, is aggressively expanding its presence in the rapidly growing European market. The company aims to capitalize on the rising global demand for advanced new energy vehicles (NEVs). To date, Changan has made significant strides in its strategy to establish a foothold across Europe.
Plans for European Market Entry
The Chongqing-based automaker recently announced its intention to penetrate ten distinct European markets, with a bold goal of launching over 200 retail outlets in the region by the close of the current year. This ambitious plan underscores Changan’s commitment to establishing a substantial brand identity in Europe.
According to Zhu Huarong, the chairman of Changan Automobile, the company’s European campaign will commence with Norway, followed by expansions into Germany and the United Kingdom by mid-year. Following these initial steps, the company intends to further establish itself in Spain, Italy, and Poland, using these countries as strategic gateways to Eastern Europe. Changan has set an objective to be present in all major European markets by 2028.
Showcasing Innovations in Germany
In March, Changan hosted an event in Germany where it unveiled eight vehicles across three distinct brands: Changan, Deepal, and Avatr. This marked a significant opportunity for the automaker to demonstrate its capabilities and innovations in NEV technology to European consumers.
Chairman Zhu emphasized the importance of Europe as a critical market for Changan, expressing a desire to learn from established automotive leaders in the region. He noted that the company is well-equipped to offer a range of high-quality products and experiences, leveraging its expertise in intelligent features and innovative design.
Commitment to Local Operations
Changan Automobile is dedicated to sustaining long-term growth and establishing local operations within Europe. The company has committed to the principle of “In Europe, for Europe,” which involves setting up localized research and development centers as well as production facilities throughout the continent.
To enhance its offerings, Changan has enlisted around 500 local designers in Europe. This collaboration is pivotal to ensuring the company meets the specific tastes and preferences of European consumers.
Understanding Customer Needs
The company believes that a key to success lies in nurturing strong relationships with its customers. By understanding their needs and prioritizing the user experience, Changan aims to forge deep connections with European buyers. Klaus Zyciora, the vice president overseeing global design, highlighted the multinational makeup of their team, boasting members from over 31 different nationalities to ensure products resonate with a diverse audience.
Zyciora is optimistic about the potential reception of Changan’s products in Europe, reflecting on his previous experience as an automotive designer at Volkswagen. His insights suggest a promising future for Changan as it aims to deliver products that capture the admiration and loyalty of European customers.
Challenges and Opportunities in the European Market
Experts believe that building a reputable brand will be crucial for Chinese automotive companies looking to succeed in Europe. During a recent forum at the Chongqing auto expo, Trevor Lewis, deputy director of innovation and industry for the UK Department for Business and Trade, stressed the importance for Chinese firms to focus on establishing local production facilities, investing in research and development, and ensuring the provision of quality services tailored to local customer expectations.
Recent Performance and Growth Metrics
Changan’s performance over the past year highlights its rapid growth in the automotive sector. In 2024, the company achieved an impressive annual sales figure of 2.683 million units, marking a 5.1 percent increase year-on-year. Among these, sales of new energy vehicles surged to 734,000 units, up 52.8 percent compared to the previous year. This remarkable growth trajectory indicates Changan’s strong foothold in the increasingly competitive NEV market.
In terms of vehicle exports, Changan ranks third among Chinese manufacturers, following Chery and SAIC, with a total of 536,000 units exported—a notable increase of 49.6 percent from the prior year. Chinese automakers have been leading the way in global automotive exports, with a reported yearly increase of 23 percent, culminating in a total of 6.4 million exported units in 2024. This figure starkly surpasses Japan’s exports, which were over 50 percent lower, according to consultancy firm AlixPartners.
Globalization Strategy and Future Prospects
For Changan, globalization continues to be a strategic priority. As many Chinese automakers increasingly focus on localized production abroad, Changan has formulated a plan that includes establishing twenty overseas manufacturing facilities in countries like Egypt, Kazakhstan, Brazil, and Indonesia. Out of these, nine factories are already operational.
In a remarkable development, the company launched its first NEV manufacturing facility in Thailand in May. With an initial investment of approximately 10 billion baht (equivalent to $306.3 million), this plant is expected to serve the ASEAN markets as well as other global right-hand drive markets.
Conclusion: Changan’s Forward Momentum
Changan Automobile is poised to become a formidable player in the European automotive landscape. With strategic planning, investments in local operations, and a commitment to understanding consumer needs, the company is well on its way to establishing itself as a trusted name in the industry. The combination of its innovative technologies and robust business strategies bodes well for Changan’s future growth in a highly competitive market.
