Changan Automobile Places Its Bets on the European Market

Changan Automobile’s European Expansion

Changan Automobile, a prominent player in China’s automotive industry, is accelerating its entry into the dynamic European market. The company aims to leverage the growing international demand for innovative new energy vehicles (NEVs) by establishing a more substantial presence across Europe. With ambitious plans, Changan is targeting ten European countries and intends to open over 200 retail locations within the region by the end of this year.

Strategic Market Entry Plans

The Chongqing-based manufacturer has outlined a clear roadmap for its expansion. According to Changan’s Chairman, the company will prioritize building brand recognition in Norway initially, before making strides into Germany and the United Kingdom by mid-year. Following these key markets, the plan includes further expansion into Spain, Italy, and Poland—these locations will facilitate access to Eastern Europe as well.

Changan has set a goal to ensure that it covers all major European markets by the year 2028, demonstrating its long-term commitment to establishing a strong foothold in the region.

Showcasing Innovation at Key Events

In March, Changan hosted an exhibition in Germany where it showcased eight models across three distinct brands: Changan, Deepal, and Avatr. This initiative exemplifies the company’s strategy to introduce its diverse product lineup to European consumers while gathering insights and feedback from the competitive market landscape.

Emphasizing its focus on the European market, the Chairman expressed hopes of learning from and collaborating with leading players in the automotive industry. This strategy highlights Changan’s intention to adapt and integrate its offerings in line with local consumer preferences.

Commitment to Local Operations and R&D

Changan is dedicated to fostering long-term growth through localized operations, encapsulated in their mantra “In Europe, for Europe.” To this end, the company is establishing research and development centers and production facilities appropriate for meeting the demands of the European market.

Backed by a team of around 500 local designers, Changan is confident in its ability to tailor its products for European customers. This approach is vital for creating vehicles that align with the specific tastes and requirements of consumers in the region.

Emphasizing User Experience and Customer Relationships

One of Changan’s primary strategies for success is building robust relationships with customers. Klaus Zyciora, the Vice President and head of global design at Changan, emphasized the importance of understanding user needs and investing in the overall customer experience. With a diverse team comprising over 31 nationalities, Zyciora believes that they can develop products that resonate deeply with consumers.

With previous experience as a designer at Volkswagen, Zyciora expressed optimism about Changan’s prospects in Europe. He believes that the products the company plans to introduce will be greatly admired and appreciated by consumers across the continent.

Building a Strong Brand Presence

For Chinese car manufacturers, establishing a distinguished brand identity is crucial for success in the European market. Trevor Lewis, the Deputy Director of Innovation and Industry at the UK Department for Business and Trade, addressed the need for Chinese companies to invest in localized manufacturing, research and development, and high-quality customer service during a recent forum at the Chongqing auto expo.

This sentiment underlines the growing recognition that meaningful engagement with local consumers will enhance brand loyalty and market acceptance.

Impressive Sales Growth and Market Position

Changan’s performance in recent years has demonstrated significant growth potential. The company recorded annual sales of 2.683 million vehicles in 2024, reflecting a 5.1 percent year-on-year increase—the highest rate of growth observed in seven years. Notably, the sales volume of NEVs surged to 734,000 units, representing a remarkable 52.8 percent increase compared to the previous year.

In terms of exports, Changan Automobile ranks third among its Chinese counterparts, with 536,000 units exported—an impressive 49.6 percent increase year-on-year. This strengthens the position of Chinese car manufacturers as leaders in global exports, with China’s total auto exports climbing 23 percent year-on-year to reach 6.4 million units in 2024—more than 50 percent higher than Japan.

Globalization Focus and Local Production Initiatives

As a state-owned enterprise, Changan maintains a strong focus on globalization. The company is actively pursuing localized production initiatives in various international markets. Plans include establishing 20 overseas factories in countries like Egypt, Kazakhstan, Brazil, and Indonesia, with nine of these facilities already in operation.

A significant milestone occurred in May when Changan unveiled its first NEV manufacturing plant in Thailand. This facility represents an initial investment of 10 billion baht (approximately $306.3 million) and is expected to produce vehicles tailored for the Association of Southeast Asian Nations (ASEAN) economies as well as global right-hand drive markets.

Conclusion: A Promising Future in Europe

Changan Automobile is poised for a successful journey in the European automotive market. With strategic planning, a commitment to local operations, and an emphasis on understanding customer preferences, the company is well-positioned to make a significant impact. As it continues to build its brand and product offerings, Changan’s dedicated approach to innovation and customer engagement will play a crucial role in its expansion strategy. With the right balance of local insight and cutting-edge technology, Changan aims to resonate with consumers and solidify its status as a leading player in the competitive European automotive landscape.