Chang'an and AVIC Automotive Reorganize the Four Major Suspense

For a long time, the reorganization of Chang'an and AVIC vehicles was full of fog and suspense. If on November 10, Chang'an and AVIC Automotive restructuring become a reality, the following four major suspense may reveal the answer on the same day, and it is likely that they will have time to respond.

Whether China's First Automobile Camp Changes Again

The “Auto Industry Adjustment and Revitalization Plan” announced at the beginning of the year included Changan Automobile as one of the “big four” car companies. The first camp of China’s auto industry has increased from three to four, and the pattern is changing.

With the addition of Hafei, Changhe, etc., "New Chang'an" is even more powerful. It is understood that Changan Automobile's sales volume will be 1.3 million to 1.4 million units this year. Hafei Motors plans to sell 240,000 vehicles this year (actual sales should be above this). Changhe ensures that it can reach 150,000 vehicles, and the three will add up to 1.8 million vehicles. Around, this figure will challenge the sales rankings of the other three companies in the "Big Four." With the increase in the strength of "New Chang'an," the pattern of the first camp of China's auto industry is likely to be adjusted again.

Will Chang'an brand play a leading role in the future?

The Chinese auto industry has already crossed the threshold of 10 million annual production this year. We have become a veritable automobile country, but it is not a powerful country. We also lack a group of auto companies that can compete with multinational giants, and we still lack a strong independent brand.

The reporter learned that the reorganization of Changan and AVIC vehicles is led and promoted by the government. Its main purpose is to foster competitive enterprises and independent brands with international competitiveness.

Prior to this, Southern Automobile was renamed China Changan Automobile Group, which was to make the Changan brand bigger and stronger. In this cooperation, China Changan Automobile Group sang the protagonist. Then, in the next integration process, will Chang'an brand be further strengthened? Can Chang'an become a "trump card" for Chinese auto brands?

Does "New Changan" Accelerate the Development of Commercial Vehicles?

Changan, Changhe and Hafei have overlapped in the mini-vehicle and sedan segment. The future three parties will probably need to integrate product layout. At the same time, if "New Chang'an" wants to go further, it will need to further improve its product chain. Although Changhe and Hafei Motors have helped, Changan has short boards on heavy trucks and large and medium-sized buses. Will Changan accelerate the pace of development of commercial vehicle segments in the future?

On October 23, Taiyuan Chang'an Heavy Gas Base was completed. At present, in the first phase of the project, a large-scale heavy-duty truck assembly shop has been built in China. The production line has a total length of 360 meters. It can produce one heavy truck every 7 minutes and has a production capacity of 50,000 vehicles. In terms of whether or not to develop heavy trucks, Changan has given practical answers.

The structural adjustment of the automobile industry will be the highlight next year. We will wait and see how the "New Chang'an" will perform.

Is there any new progress in international joint venture cooperation?

The deputy general manager of AVIC Automotive Co., Ltd. Liang Gang revealed in an interview with this reporter in Changchun on October 20th that at present, the joint venture and cooperation negotiation between Hafei Automobile and PSA is proceeding smoothly and it is expected that there will be results during the year. Once Chang'an and AVIC Automotive are reorganized, will the main body of the negotiations between the parties change? Is the content of the collaboration adjusted? In addition, does Changan Suzuki and Changhe Suzuki integrate?

One of Changan’s development strategies is internationalization. We believe that after the reorganization, the “New Chang’an” international partners will only increase, and the pace of joint ventures and cooperation will not slow down but will accelerate. The restructuring of Changan and AVIC Automotive is by no means the end, but a new starting point.
View related topics: Military Equipment Group and AVIC Restructuring - Changan M&A Changhe Hafei