Changan Automobile has officially been restructured as an independent, centrally administered state-owned enterprise (SOE) under China’s State-Owned Assets Supervision and Administration Commission (SASAC), Global Times reported.
It will become the third major automaker overseen directly by the central government, alongside FAW Group and Dongfeng Motor. Previously part of China South Industries Group, the newly formed entity is headquartered in Chongqing and manages 117 subsidiaries. Changan will focus on cutting-edge sectors such as smart vehicles, robotics, flying cars, and embodied intelligence.
The restructuring is part of China’s broader SOE reform strategy to streamline state capital and boost industrial competitiveness. Experts view the move as key to strengthening China’s position in the global automotive landscape.
Changan also plans aggressive international expansion, targeting markets in Southeast Asia, the Middle East, Latin America, and Europe.
Chinese experts said that the restructuring marks a significant step in China’s efforts to advance the reform of central state-owned enterprises (SOEs) and optimize the layout of state-owned capital. It also serves as a crucial measure to enhance the competitiveness of China’s automotive industry.
In the first half of 2025, Changan sold 1.355 million vehicles, including 450,000 new energy vehicles (NEVs) – a 48.8% year-on-year increase.
In February, Chinese carmakers Dongfeng Automobile and Changan Automobile unveiled major restructuring initiatives involving their parent companies. They are both centrally managed state-owned enterprises. It shows deeper alignment with national reforms aimed at streamlining and modernizing the state sector.
Zhang Yuzhuo, chairman of SASAC, indicated in March 2024 that the commission intends to adjust its evaluation policies. It will conduct separate assessments of NEV operations across the three centrally administered automakers. These assessments will focus on key metrics such as technological innovation, market share, and future development potential. Their aim is to promote healthy competition and sustained growth within China’s state-led automotive industry.