A staff member inspects the exterior of a new energy vehicle at a Changan Auto factory in Chongqing. (Photo by Long Fan/Chongqing Daily)
Chongqing - China has elevated Changan Automobile to a centrally administered state-owned enterprise (SOE), making it the country’s third central SOE in the automotive sector and the first top-tier SOE headquartered in Chongqing.
This strategic upgrade—announced on July 29—marks a departure from China’s traditional merger-driven reforms, positioning Changan alongside industry giants FAW Group and Dongfeng Motor as part of a broader push to bolster the national auto industry.
Top-tier SOE to boost industry push
"This kind of reform reveals a profound shift in strategic thinking," said Liao Chenglin, Professor at the School of Economics and Business Administration at Chongqing University. It shows that policymakers clearly understand that the new industrial landscape requires a new competitive paradigm.
Unlike traditional heavy industries, the competition in the new energy vehicle (NEV) sector no longer hinges solely on production scale. Instead, success is driven by rapid technological iteration, the ability to define vehicles through software, and the agility to build innovation ecosystems in partnership with tech firms — a formula proven by companies like Tesla and BYD, Liao added.
"Being a top-tier central SOE shortens the decision-making chain significantly. We can now communicate directly with the State-owned Assets Supervision and Administration Commission (SASAC), respond more quickly to market changes, and seize strategic opportunities," a representative from Changan Auto said.
As a company directly under SASAC supervision, the new group will gain more access to national-level funding in strategic emerging industries and key R&D projects — accelerating its capacity to adapt and innovate in the fast-evolving NEV sector, according to the representative.
"As a brand-new central SOE in the automotive sector, through strategic restructuring and professional integration, Changan Automobile Group is expected to unleash institutional innovation, efficiently gather global innovation resources at a higher level, and strengthen core enterprise functions centered on technological innovation, industrial control, and security support," said Wang Zhijie, Director of the Chongqing Municipal Commission of Economy and Information Technology.
This move will strengthen Changan’s core competitiveness and support Chongqing’s efforts to build a modern manufacturing cluster centered on a trillion-yuan intelligent connected NEV industry, positioning the city as a major hub for smart NEVs and advancing China’s ambition to become a global automotive leader, Wang added.
This is not just an endorsement of Chongqing's development — it's a strong signal of support for western China's innovation capabilities. The new SOE will help transform the region from a passive technology recipient into an active originator of cutting-edge innovation, said Liao.
A staff member inspects the vehicle's paint quality on the body surface at a Changan Auto factory in Chongqing. (Photo by Zhang Jinhui/Visual Chongqing)
Changan Rises with Chongqing
The establishment of Changan Automobile Group is the result of four decades of shared growth and strategic alignment between Changan Auto, the city of Chongqing, and China’s broader national development agenda.
In 1984, facing a survival crisis as military-industrial orders waned, Changan pivoted to introducing minicar technology from Suzuki—marking its entry into the auto industry. The move met early market demand during China's reform and opening-up, offering affordable, practical transport for a growing private economy and expanding market circulation.
In 2006, Changan launched its self-owned passenger car strategy, marking the start of independent research and development. The move directly answered China's call for indigenous innovation and the creation of national industrial brands. Over time, Changan built its R&D capabilities through a globally integrated development system.
In 2017, Changan began a full transition into a "smart, low-carbon mobility tech company," driven by its focus on new energy vehicles and intelligent driving technologies. This shift aligned closely with China's push to cultivate strategic emerging industries, pursue dual carbon goals — peaking carbon emissions before 2030 and achieving carbon neutrality before 2060- and strengthen its manufacturing capabilities.
Chongqing, in parallel, has steadily reinforced its role as an auto manufacturing powerhouse. In 2023, the city introduced the "33618" modern manufacturing cluster system, placing a trillion-yuan-level intelligent connected NEV cluster at the heart of its ambitions.
In 2024, Chongqing produced 953,000 NEVs—a 90.5% year-on-year surge—ranking among the top three nationwide in complete vehicle output. The city's auto industry also upgraded, with the average unit value of mainstream NEVs reaching 236,000 yuan ($32,891.08) in the same year, and models priced above 200,000 yuan accounting for 48.3% of production.
Supporting this growth is a strong push in forward-looking infrastructure. As a national-level V2X (vehicle-to-everything) pilot zone, Chongqing has upgraded over 730 kilometers of cooperative vehicle-road infrastructure to enable intelligent connected vehicle testing and applications.
Zhu Huarong, Chairman of Changan Automobile Group Co., Ltd., stated that the company aims to achieve a production and sales volume of five million vehicles by 2030, with new energy vehicles making up more than 60% and overseas sales accounting for over 30%.