Chinese automaker Changan Automobile has recently made significant strides in expanding its presence in the European market by opening a new office in Germany. This move comes as part of Changan’s efforts to tap into the world’s third-largest regional market and compete with other Chinese automakers like BYD and Chery who are also making inroads in Europe.
The new European office, Changan Automobile Deutschland, based in Munich, will serve as a hub for various operations including market research, product engineering, testing, homologation work, sales, and customer services. This strategic expansion is aimed at bolstering Changan’s overseas sales and improving its financial performance amidst fierce competition in the Chinese automotive market.
Changan’s foray into Europe is further supported by its plans to establish a regional plant for electric vehicle manufacturing in Southeast Asia, specifically in Thailand. The facility, with an initial capacity of 100,000 vehicles annually, is set to commence operations in the first quarter of next year with an investment of 8.8 billion Thai Baht ($241.7 million). This move underscores Changan’s commitment to expanding its global footprint and capitalizing on the growing demand for electric vehicles in the region.
Furthermore, Changan, known for its partnerships with global giants like Ford and Mazda in China, is also exploring the possibility of setting up production facilities in Europe, Central, and South America. With a significant increase in vehicle exports to 228,607 units from January to July, Changan is poised to introduce five EV models in Europe by 2024, including the luxury sports utility vehicle Avatr 11 and the more affordable Deepal S7 crossover, both featuring Huawei’s advanced in-car technology.
In addition to its collaboration with Ford and Mazda, Changan has been closely working with Chinese tech giant Huawei to integrate intelligent vehicle technology into its vehicles. The partnership between Changan and Huawei culminated in a RMB 11.5 billion deal, with Changan acquiring a 10% stake in Huawei’s automotive business unit. This strategic alliance underscores the growing trend of Chinese automakers leveraging technology partnerships to enhance their competitiveness in the global market.
The expansion of Chinese automakers into the European market is not limited to Changan. BYD, another prominent Chinese automaker, announced its plans to acquire its German distributor Hedin Electric Mobility, while Chery, Land Rover’s partner, entered a joint venture with Spain’s EV Motors to produce cars in Barcelona. These developments highlight the increasing presence of Chinese automakers in Europe and their efforts to establish a strong foothold in the region.
As Chinese carmakers continue to expand globally, they are expected to become dominant players in the automotive industry despite challenges such as tariffs. With a focus on innovation, strategic partnerships, and a strong commitment to sustainability, Chinese automakers like Changan are well-positioned to lead the charge towards a greener and more technologically advanced future in the automotive sector.