Changan Automobile has adopted a vertical and horizontal integration strategy, expanding northward and eastward, and has essentially formed a "product triangle" led by Changan, Ford, and Suzuki, along with a "regional triangle" strategic framework dominated by Chongqing, Nanjing, and Hebei. While the company enjoys strong production and sales performance, it cannot mask the underlying weaknesses of the Chinese auto market. Riding on the back of China's fast-growing economy, foreign automakers and their local partners have been reaping profits that are more than 100 times the global average, often at the expense of national resources and taxpayers.
However, Chinese automakers have not fully mastered the core technologies from these foreign partners. In response, a few domestic companies are striving to change this dynamic and promote independent brands. Among them is Changan Group, one of China’s top three automakers in terms of sales. To expand its scale, Changan established Hebei Changan in the north, set up Changan Nanjing in the east, and partnered with global giants like Ford to form Changan Ford. This expansion has helped Changan build a solid "product triangle" of Changan, Ford, and Suzuki, as well as a strategic "regional triangle" across Chongqing, Nanjing, and Hebei.
On September 16, Changan launched its first self-developed vehicle with full intellectual property rights—the CM8. At the event, Yin Jiaxu, President of Changan Group, urged more Chinese automakers to embrace self-development and cultivate their own brands. During an interview with reporters, Yin explained why Changan chose to focus on independent development rather than simply importing foreign brands, which might offer quicker results with less investment.
Yin emphasized that while importing models and technology may seem less risky, it comes with high long-term costs. Multinational companies take a significant share of profits for each car sold, and over time, this drains the domestic industry. He also pointed out that without mastering core technologies, Chinese automakers risk losing control of the industry and compromising economic independence.
Currently, some self-developed models struggle with low sales, raising concerns about the risks of Changan's independent R&D path. However, Yin stressed that the company has built a strong team through collaboration with I.DE.A, an Italian design firm. While only 20% of the CM8 project involved Changan engineers, this increased to 70-80% in subsequent projects like CV9, CV7, and CV6. This hands-on approach has allowed Changan to gain deep technical expertise, enabling continuous improvement and innovation.
Regarding potential conflicts with Ford and Suzuki, Yin clarified that Changan maintains equal partnerships with foreign firms while preserving its autonomy. The company insists on independent branding, development, production, and sales, believing that stronger internal capabilities enhance cooperation and influence in joint ventures.
Looking ahead, Changan aims to further accelerate growth through both leapfrog and incremental development strategies. Despite the recent downturn in the domestic market, Changan continues to operate at full capacity, with rising sales and strong performance from models like Mondeo and Antelope. The company plans to launch several new independently developed vehicles over the next three years, expanding into higher displacement models.
Changan has also taken steps toward financial expansion, having successfully issued A-shares and considering listing its logistics arm on the Hong Kong Growth Enterprise Market. With a robust ERP system in place, the company has improved efficiency, reduced inventory, and ensured stable profitability. As Changan continues to grow, it remains focused on building a strong, independent automotive future for China.
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