Visitors experienced the Avatr 07 model at the Avatr booth during the show. (Photo/Huxin Luo)
Chongqing - Chongqing-based Changan Automobile is bringing its electric vehicle brands Avatr and Deepal closer together, recently establishing an “AD Collaborative Development Department” to turn its planned coordination strategy into action.
“AD” refers to the initials of Avatr and Deepal. The department is positioned as a first-level division, with several secondary departments including planning, cooperation, and marketing.
It will mainly coordinate related businesses between Deepal and Avatr. Meanwhile, Changan plans to establish shared or collaborative centers in areas including design, product development and platform technology under Avatr to support related Deepal operations.
A representative from Changan said the department has already been established, but no further details have been disclosed regarding its specific responsibilities or implementation plans.
In April, Changan announced that it would promote comprehensive strategic coordination between Avatr and Deepal, aiming to build a NEV brand group with annual global sales exceeding 1.5 million units by 2030. Among them, Avatr targets annual sales of 500,000 units, while Deepal aims for 1 million units. The company also aims for overseas sales to account for more than 40%.
Regarding the integration, Changan previously emphasized that the move is not a simple merger of the two brands, but an effort to achieve resource sharing while maintaining their independent operations. The company proposed a coordination approach featuring unchanged strategies, unchanged brand operations, shared system capabilities, and shared technology and supply chain resources.
Avatr and Deepal are two core brands in Changan’s NEV strategy. The company hopes the two brands can complement each other and build competitive advantages in different market segments.
Avatr is positioned as a premium intelligent electric vehicle brand. Supported by Changan, Huawei and CATL, the brand focuses on intelligent driving, smart cabins and electrification technologies. Through cooperation with technology companies, Avatr aims to develop a new type of intelligent vehicle that differs from traditional automotive brands.
Deepal focuses on the mid-to-high-end NEV market and places greater emphasis on large-scale growth, targeting a broader range of consumers. Its product lineup covers multiple segments, including sedans and SUVs, making it an important brand in Changan’s strategy to expand its NEV presence among mainstream consumers.
China’s NEV industry enters a new stage of competition. According to the China Association of Automobile Manufacturers (CAAM), NEVs accounted for 52.4% of new vehicle sales in the first eight months of 2026, with the figure rising further to 60.6% in August alone. NEVs have gradually shifted from a market growth driver to a key focus of competition in the automotive industry.
As the NEV market expands rapidly, traditional automakers have launched multiple NEV brands to reach different consumer groups and price segments. In recent years, traditional automakers including Changan, Geely, GAC and FAW have accelerated their NEV strategies through dedicated brands.
However, as the industry enters a stage of large-scale competition, automakers shift their focus from brand expansion to building stronger system capabilities. NEV development involves multiple areas, including batteries, electric drive systems, intelligent driving, software and supply chain management. Operating multiple brands independently also lead to challenges such as scattered R&D investment, repeated supply chain construction and higher operating costs.
Changan’s move to further coordinate Avatr and Deepal is part of its efforts to optimize its NEV business structure in this context. Similar trends are also emerging across the industry. For example, FAW Group and GAC Group have recently advanced cooperation, exploring collaboration in areas such as capital, industrial chains and technology.
Unlike Changan’s internal coordination between two brands, the FAW-GAC cooperation focuses more on resource complementarity between separate companies. Both approaches reflect how China’s automotive industry is seeking to enhance competitiveness through resource integration.