Changan Automobile has adopted a strategy of vertical and horizontal integration, expanding northward and eastward, and has largely established a "product triangle" led by Changan, Ford, and Suzuki, as well as a "regional triangle" strategic framework dominated by Chongqing, Nanjing, and Hebei. Despite the booming production and sales figures, the Chinese auto market still faces underlying weaknesses. While foreign automakers and their Chinese partners have benefited immensely from China’s rapid economic growth, taking profits far exceeding the global average, Chinese companies have not yet mastered the core technologies. However, a few domestic automakers are striving to change this situation and promote independent brands. Changan Group, one of China's top three in sales, is among them.
To expand its scale, Changan established Hebei Changan in the north, set up Changan in Nanjing in the east, and formed a joint venture with Ford. Today, it has developed a product triangle consisting of Changan, Ford, and Suzuki, along with a regional triangle encompassing Chongqing, Nanjing, and Hebei. On September 16, Changan launched its first self-developed car with full intellectual property rights — the CM8. At the event, Yin Jiaxu, President of Changan Group, urged more Chinese automakers to focus on self-development and build their own brands.
In an interview, Yin Jiaxu explained why Changan chose not to simply import foreign brands like some other major automakers. He pointed out that while importing models may offer quick results with less investment, it comes at the cost of long-term technological independence. China has become the fourth-largest automotive producer and third-largest market globally, but without core technology, domestic manufacturers remain dependent on foreign partners, losing control over the industry's commanding heights.
In 2003, many new models were introduced, mostly imported or slightly modified versions. Domestic cars, however, were limited in quantity and lacked competitiveness. While short-term model introductions involve lower risk, they also mean that multinational companies take a significant share of profits. Yin emphasized that Changan's approach is different — through collaboration with I.DE.A, an Italian design company, the company has built a team capable of handling the entire R&D process. This has allowed Changan to gradually increase its technical involvement from 20% in the CM8 to 70–80% in later models like CV9, CV7, and CV6.
Regarding conflicts with Ford and Suzuki, Yin stated that Changan maintains autonomy in its partnerships, insisting on independent development, production, and sales. The stronger Changan becomes, the more respect it earns from international partners, leading to better cooperation opportunities. As the company grows, it aims to enter the first-tier automotive group in China.
Changan's achievements have been remarkable. From producing less than 100,000 units in 1998, it reached 380,000 units in 2003, becoming the fourth-largest automaker after FAW, SAIC, and Dongfeng. In 2024, Changan ranked in the top three, achieving its three-year goal a year early. Looking ahead, the company plans to adopt a leapfrog development strategy, aiming to further accelerate growth and reach the top tier.
Despite a recent downturn in the domestic market, Changan continues to operate at full capacity, with sales increasing month by month. Models like Mondeo and the Antelope and Alto from Changan Ford and Suzuki are performing well. The company is seizing this opportunity to strengthen its position.
Changan has also shifted its strategy from focusing solely on micro-vehicles to a broader range, including sedans and commercial vehicles. The upcoming CV9 sedan and several other models with independent intellectual property will be launched in the next three years, featuring larger engine displacements.
Looking ahead, Changan plans to expand its production capacity and explore new financing avenues, including listing on the Hong Kong Growth Enterprise Market. While the overall listing of the group is still under consideration, the company remains focused on leveraging capital operations to enhance its global presence.
Despite past doubts, Changan's performance has proven strong. With effective management systems like ERP, the company has improved efficiency and reduced costs significantly. Since 2001, it has experienced consistent growth, reaching fourth place in production and sales by 2003.
Changan’s journey reflects its commitment to innovation, independence, and long-term success in the global automotive industry.
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