Chongqing - Changan Automobile, newly a central state-owned enterprise, is expanding in Europe. On September 8 at IAA Mobility 2025 it unveiled the Deepal S05, and on September 7 in Munich its premium EV brand Avatr, co-founded with Huawei and CATL, launched the VISION XPECTRA, the world’s first Emotion Intelligence concept car.

On September 8, at Changan's booth at IAA Mobility 2025, Klaus Zyciora, Vice President of Changan Automobile, introduced the Changan Deepal S05 to the audience. (Photo/Deepal)

AVATR Technology unveiled its most ambitious creation in Munich, Germany: AVATR VISION XPECTRA. (Photo/AVATR)

The S05 will launch in Europe in three versions priced EUR 38,990–44,990 (about USD 45,895–52,958), much higher than its China price of 119,900–149,900 yuan (about USD 16,836–21,048), a gap largely explained by import tariffs. It is equipped with a 68.8 kWh battery and offers a maximum range of 485 km.

Designed as a compact SUV for urban mobility, the S05 supports Level 2 advanced driver assistance systems (ADAS). As the core model of the Deepal brand, the S05 achieved impressive sales of 12,184 units in August, accounting for 43.2% of the brand's total sales for the month.

As Changan’s main new energy vehicle brand for global markets, Deepal presented both the S05 and its latest sedan, the L06. At the autumn launch in Chongqing’s Liangjiang New Area, held alongside IAA Mobility 2025, Chairman Deng Chenghao outlined the brand’s ambitious plans for the L06.

Deng emphasized that the L06 will feature a suspension system comparable to Ferrari’s, driving assistance technology on par with Tesla’s, and a cockpit experience potentially surpassing that of the never-released Apple Car.

Since announcing its global expansion strategy in 2023, Changan has entered over 100 markets across Southeast Asia, Europe, Latin America, the Middle East, and Africa, with Europe being a key focus. In March 2025, Changan formally entered the European market with a launch event featuring its three brands—Changan, Deepal, and Avatr.

Changan has set up import subsidiaries in Germany and the UK. In late August, it opened its first German showroom near Hamburg at Autohaus Günther. In the UK, 20 dealerships are scheduled to open by mid-September, including a flagship store in Birmingham, with 30 more sales and service outlets planned by the end of 2025.

In other European markets, Changan relies on regional importers covering Greece, Norway, Portugal, and the Western Balkans. In Denmark, it is set to sign a cooperation agreement with an import partner on September 9.

EU tariffs don’t stop Chinese NEV growth

IAA Mobility 2025 drew 116 Chinese NEV brands and suppliers, up from 70 in 2023, highlighting Europe’s growing importance for them. Participants included BYD, Changan, Xpeng, Leapmotor, and CATL, spanning vehicles, batteries, and intelligent auto technologies.

Despite the EU’s imposition of a five-year final anti-subsidy tariff on Chinese battery electric vehicles (BEVs), the European market remains a key export destination for Chinese NEV brands, primarily due to Europe’s mature market system, supportive policies, and intense price competition in China.

Globally, Japan and South Korea remain tough markets, with Japan maintaining strong non-tariff barriers and South Korea limited by its small scale. In contrast, Australia and New Zealand are mainly supplied with Chinese NEVs through production bases in ASEAN countries, rather than local manufacturing.

As a result, Europe remains the top market for Chinese brands seeking high-end and large-scale expansion. Zhu Huarong, Chairman of China Changan Automobile Group, stressed that a foothold in Europe would prove the company’s product quality, brand strength, and service systems are world-class, making success there a key milestone toward becoming a global leader.

In March 2023, the EU passed the landmark "ban on combustion engines" legislation, which mandates zero carbon emissions for all newly launched passenger cars and trucks starting in 2035. Despite debate, the policy supports faster NEV growth, with cutting CO2 emissions still a core goal for Europe’s auto sector.

Amid the fierce price competition in the domestic automotive market, Chinese car manufacturers are increasingly seeking breakthroughs in overseas markets. According to data from the National Bureau of Statistics, while revenue in China’s automotive manufacturing industry grew by 7.1% year-on-year in the first five months of 2025, profits fell by 11.9%, with the industry’s profit margin standing at only 4.3%.

Cui Dongshu, Secretary-General of the China Passenger Car Association, pointed out that compared to other markets, the EU remains the dominant market for BEVs. From January to July 2025, the EU imported 357,000 BEVs, up 5% year on year, making it a major global market. Chinese plug-in hybrid electric vehicles' exports to the EU also surged to 143,000 units, a 523% increase.