Reporter Duan Siyao and Editor Dong Tianyi

The penetration rate of China's new energy vehicle market is expected to reach 47.2% in 2024, and exceed 80% in 2030. "On December 29th, Zhu Huarong, Chairman of Changan Automobile, predicted that the penetration rate of the domestic new energy vehicle market will continue to increase in the next 3-5 years, and the multi power pattern will coexist in the long term.

Under this trend, Changan Automobile's new energy strategic transformation path has become more clear. Zhu Huarong said, "By 2025, Changan Automobile will launch 13 new energy products, accelerate the transformation of traditional fuel vehicles to HEV (hybrid electric vehicles), promote the electrification of all products, and achieve the annual sales target of 1 million independent new energy vehicles

Official data shows that Changan Automobile's annual sales for 2024 will reach 2.683 million vehicles, a year-on-year increase of 5.1%. Among them, the sales of new energy vehicles reached 733000 units, a year-on-year increase of 52.4%. Changan Automobile President Wang Jun said, "By 2025, Changan Automobile is expected to achieve a total sales volume of 3 million vehicles, including 1 million self owned new energy vehicles. By 2030, the total sales volume will reach 5 million vehicles, including 3.5 million new energy vehicles

Image source: Photo by journalist Kong Zesi (source image)

Entering the European market by 2025

According to the Daily Economic News, Changan Automobile had planned to enter the European market in 2024, but this plan was postponed due to factors such as the EU's imposition of tariffs on Chinese electric vehicles.

By 2025, Changan Automobile will officially enter the European market and rapidly expand into Southeast Asia, Central and South America, the Middle East, Africa and other markets, establishing regional business units. Among them, Changan Automobile will complete the comprehensive introduction of three major brands, CHANGAN, DEEPAL and AVATR, in the Central and East African markets. Zhu Huarong said that Changan Automobile will introduce eight products in these markets next year.

According to the plan, Changan Automobile's overseas market sales plan is to achieve 1 million vehicles by 2025 and 1.5 million vehicles by 2030. To achieve this goal, Changan Automobile will accelerate its global production capacity layout. The reporter learned that Changan Automobile will have 8 overseas factories put into operation next year, with a production capacity of 130000 vehicles. The first overseas new energy vehicle base will be built and put into operation in the first quarter of next year in Rayong Province, Thailand, with a planned production capacity of 100000 vehicles in the first phase.

Next year, independent car manufacturers and parts companies will enter a period of intensive overseas production capacity, and localized production will further open up sales and continue the growth momentum of automobile exports. Zhu Huarong predicts that China's automobile export volume is expected to reach 6.8 million units by 2025, a year-on-year increase of 13.3%, and can reach an overseas market size of at least 10 million units in the future.

In Zhu Huarong's view, in 2025, Changan Automobile not only needs to seize the growth opportunities in overseas markets, but also cannot afford to lose in the domestic market. The domestic 'two new' policies continue to show effectiveness, consumer demand is further released, and the consumer car replacement cycle is significantly shortened. Changan Automobile will launch new products such as Avita 06, Deep Blue S09, Changan Qiyuan C798, Changan Mazda J90K, etc., to enter various segmented markets, "said Zhu Huarong.

Image source: Photo by journalist Duan Siyao

Identify the three major brands and three major sequences

With the advancement of the three sub plans of new energy, intelligence, and globalization, Changan Automobile has reorganized its brands, clarifying the three major brands of Changan, Shenlan, and Avita, as well as the three vehicle series of Gravity, Qiyuan, and Kaicheng under the Changan brand.

According to the reporter's understanding, in 2025, under Changan Automobile's goal of hitting 3 million vehicles, Shenlan will undertake the sales task of 500000 vehicles, Avita will undertake 220000 vehicles, and the remaining 2.28 million vehicles will be undertaken by Changan brand. Compared with the sales structure in 2024, Deep Blue and Avita may become the main sources of sales growth for Changan Automobile.

According to the current information disclosed by Changan Automobile, Avita will launch a new product Avita 06 in 2025, while Deep Blue will layout two new products including S09. Deng Chenghao, CEO of Deep Blue Motors, said, "Next year, Deep Blue aims to achieve a sales volume of 100000 vehicles in overseas markets, with Southeast Asian markets accounting for about half of the sales target of 500000 vehicles

Previously, the Deep Blue S07 had entered the Southeast Asian market, and the Deep Blue S05 will be put into production at a new factory in Thailand next year. In Deng Chenghao's view, the compact and mid size car markets where S05 and S07 are located are relatively large, and next year these two products will be sold to 90 countries worldwide, becoming the main models of Deep Blue at the current stage.

It is worth noting that under the sales target of 500000 vehicles, the production capacity of Deep Blue has attracted much attention from the outside world. In 2024, Shenlan S07, a subsidiary of Shenlan Automobile, encountered delivery difficulties due to production capacity issues. For the Deep Blue S07, the peak production capacity of the Nanjing factory can reach nearly 200000 vehicles; for the S05, we have prepared a global production capacity of 250000 vehicles, including 150000 vehicles in Chongqing and a Thai factory planned to start production in March next year with a production capacity of 100000 vehicles. In addition, the S09 will also be put into production at the Beijing factory with a production capacity of over 100000 vehicles, "Deng Chenghao told reporters.

Regarding the sales forecast for Deep Blue Motors next year, Deng Chenghao said, "The overall industry situation next year should be low at the beginning and high at the end, with an overall trend towards stability. We will prepare for a tough battle in the first half of the year and make arrangements for product sales in the second half. We look forward to achieving a cumulative sales volume of 1 million vehicles next year