2024 CHANGAN Global Partners Conference: A New Leap Forward
With the year of Dragon approaching, CHANGAN Automobile has initiated a grand strategic plan for the coming year. On January 16th, under the theme "Joining Hands and Moving Forward towards a New Paradigm", the 2024 CHANGAN Global Partners Conference was successfully held in Chongqing.
At this conference, CHANGAN Automobile conducted a comprehensive review of its successful past operations. The conference served as a platform to analyze the future trends in the automotive industry, unveil the latest corporate development strategy, and engage with global partners, including suppliers, dealers, investors, customers, and media. Together, they deliberated on the future direction, symbolizing a collective stride towards a new era. Standing at CHANGAN's 40-year milestone, Chairman Zhu Huarong urged partners to harness the momentum of CHANGAN's upward trajectory and capitalize on the accelerated global expansion, emphasizing the importance of unity in seizing the pivotal year for CHANGAN Automobile's transformative journey.
CHANGAN Automobile has solidified its corporate development objectives, aiming to achieve a group-wide sales target of 2.8 million vehicles in 2024. Within this, domestic sales are projected at 2.204 million vehicles, new energy vehicle sales at 750,000, and overseas sales at 480,000. Looking ahead to 2025, the group aims for sales between 3.5 and 4 million vehicles. This includes 2.8 to 3 million in domestic sales, 1.2 million in new energy vehicle sales, and 700,000 in overseas sales. By the year 2030, the company envisions reaching a global sales volume of 5 million vehicles. This ambitious target includes 4 million vehicles in domestic sales, 3 to 3.5 million in new energy vehicle sales, and 1.2 million in overseas sales, positioning CHANGAN Automobile as a world-class automotive enterprise.
The event delivered some inspiring and spirited reports. 2023 was a fruitful year for CHANGAN, achieving double-digit growth in various operational metrics. Notably, self-owned brand sales reached 2.098 million vehicles, registering an impressive YoY surge of 11.9%. The new energy vehicle sector saw a remarkable uptick with sales hitting 481,000 units, boasting a substantial YoY growth of 69.2%. Overseas sales reached a new high at 358,000. Revenue amounted to CNY 242.45 billion, up 12.8% YoY. Cash flow continued to climb, witnessing a YoY growth of 369.6% in 2023. The company's value consistently rose, with accumulated financing of CNY 16.6 billion over the past three years, a 54% increase in market value, and dual-driven growth in market value and profit. This growth further stimulated the synchronized development of the entire industry chain, providing employment for over a million individuals and contributing CNY 17.6 billion in taxes. CHANGAN's market influence is undoubtedly top-notch!
The "Three Major Plans" have been an integral part of every step in CHANGAN's transformation in 2023, as CHANGAN transitions into a technology-driven company for intelligent and low-carbon mobility. Among these plans, the Mission of Shangri-La NEV Strategy has reached new heights: AVATR has gradually established itself as a premium intelligent driving brand, successfully launching AVATR 11 and AVATR 12 with an average price of 350,000 to 370,000 yuan, attracting considerable attention, especially with more than 50% of users being from the post-90s generation. DEEPAL has claimed the "REEV" label, creating a brand image that is both niche and technologically youthful. The introduction of the CHANGAN NEVO brand signals the industry's entry into the era of "Digital Intelligent Vehicles", laying the foundation for CHANGAN's future development. CHANGAN has collaborated with industry leaders such as CATL, Ganfeng Lithium, and NIO, covering various aspects of new energy development, including power battery research and development, battery industry chains, and swap stations.
The Dubhe Plan Intelligent Strategy achieves new breakthroughs: CHANGAN leads the way into the AI era, upholding the mantra "No Intelligence, No CHANGAN; No Technology, No CHANGAN". With over 30 groundbreaking technologies, including the pioneering APA 7.0, CHANGAN takes control of intelligent advancements. Through the collaboration with Horizon Robotics on the establishment of Chongqing Changxian Intelligent Technology Co., Ltd., CHANGAN aims to obtain a globally leading full-stack controllable core capability. Through a strong alliance with Huawei, CHANGAN aspires to be a world-class leader in the automotive intelligent driving system and components industry. Additionally, strategic collaborations with over 30 global enterprises focus on high-value technology exploration, positioning CHANGAN far ahead in China's automotive intelligence landscape. By continually expanding its "network of alliances", CHANGAN fosters a collaborative ecosystem for intelligent electric vehicles, ushering in a new era in China's automotive cooperation landscape.
The 'Vast Ocean' forges a new path: In 2023, CHANGAN reinforced the commitment that "No Overseas Bases, No Global Outreach; No Global Outreach, No CHANGAN". With the formal announcement of The 'Vast Ocean', CHANGAN sets clear overseas development goals with the "Four Ones" strategy, focusing on advancing the "1+5+2" global deployment. CHANGAN's products have now reached 63 countries and regions globally, securing leading market positions in countries such as Russia, Saudi Arabia, Chile, Mexico, and more, establishing CHANGAN as a prominent player among Chinese automotive brands on the global stage.
In November 2023, CHANGAN held its Southeast Asia Press Conference in Bangkok, officially introducing the DEEPAL models to Thailand. With a cumulative order count surpassing 5,000 units, this marks the initiation of a new chapter in expanding into the global market.
Simultaneously, CHANGAN is making significant efforts to build and optimize its global operating system, advancing localized operations. It has initiated its first overseas facility, the "Thailand New Energy Base", and concurrently established local operations team and three local companies: CHANGAN Auto Southeast Asia Co., LTD, CHANGAN Auto Sales (Thailand) Co., LTD, and CHANGAN Auto Components (Thailand) Co., LTD. This signifies CHANGAN's accelerated development in Southeast Asia, transitioning from strategic blueprints to tangible actions is a noteworthy milestone. Additionally, plans are underway to establish manufacturing bases in Europe, America, and other regions, fine-tuning the global production capacity distribution.
This is a gathering of gratitude and a heartfelt exchange. In 2023, CHANGAN, in collaboration with its global partners, presented an impressive performance amidst intense market competition. Over the past year, CHANGAN's brand has seen continuous elevation, setting design trends, expanding rapidly in international markets, and achieving notable success in the realm of new energy intelligent connected vehicles. CHANGAN has consistently pursued high-quality development towards new and upward directions, and these accomplishments are a result of the united and determined efforts of every partner, including suppliers, dealers, employees, users, and the media.
In 2024, as the competition in China's automotive market intensifies, CHANGAN Automobile, maintaining its commitment to transformation and a vigilant awareness of challenges, once again demonstrates its strategic vision. Chairman Zhu Huarong, adopting a self-Q&A format, candidly addressed recent discussions and challenges, fostering open communication. He provided updates on the joint venture with Huawei, emphasizing the importance of shared interests to unite partners in opening new horizons and accelerating global market expansion.
This marks a pledge ceremony geared towards new leaps and strategic planning for the future. With the simultaneous advancement of the three major plans in 2023, CHANGAN Automobile has laid a solid foundation for the future. As the company gears up to tackle the significant development phase over the next two years, 2024 is poised to witness CHANGAN Automobile setting sail with renewed vigor, aiming to scale new summits on the back of its revitalized accomplishments. President Wang Jun emphasized, "We have identified 'Five Major Opportunities' for 2024, and hope to collectively seize these opportunities, we firmly believe 2024 holds great promise for us!"
Opportunity One: Grasp the opportunity with new products. In the first quarter of this year, the globally pioneering extended-range pickup, CHANGAN Hunter, will commence deliveries. The second quarter brings the official launch of DEEPAL G318 SUV. The third quarter will deliver AVATR's second SUV, E15, alongside DEEPAL C857 and KAICHENG G393. The fourth quarter sees the introduction of new vehicles like CD701, AVATR midsize coupe E16, CHANGAN NEVO C798, and CHANGAN Mazda J90A, signifying a significant advancement in the portfolio of intelligent electric vehicles. CHANGAN Automobile aims to unveil over 30 new energy products by 2028.
Opportunity Two: Shapes its technological ecosystem and seizes competitive advantages. The upcoming mass production of the pioneering Smart Driving Vehicle on the SDA platform, scheduled for October this year, positions the company ahead of competitors by more than two years. The imminent mass production of this groundbreaking intelligent vehicle marks the beginning of a new era, promising substantial growth.
Opportunity Three: Accelerates into the express lane of globalization, grasping overseas prospects. In 2024, the company is set to introduce over 7 new energy products, including AVATR 11, Lumin, and CD701, into the Southeast Asian market, simultaneously establishing more than 530 channel touchpoints. In the European market, CHANGAN Automobile aims to introduce more than 5 new energy products, such as AVATR 11, DEEPAL S07, and C327. The company is also making swift strides into untapped markets in Australia, New Zealand, South Africa, and Israel, projecting export volumes to exceed 500,000 units.
In 2025, CHANGAN Automobile will inaugurate its manufacturing hub in Rayong Province, Thailand, with an impressive annual production capacity of 100,000 vehicles, with potential to expand to 200,000 vehicles. This facility is strategically positioned to cater to global right-hand drive markets. Initial production focuses on the C857 production project, followed by the introduction of multiple models, presenting opportunities for over 30 billion yuan in localized procurement.
Opportunity Four: Precision targeting for market. CHANGAN Automobile identified market opportunities in the new energy vehicle sector, specifically in regions like Beijing, Tianjin, Hebei and Shanghai. Despite the overall market average, CHANGAN Automobile sees significant room for growth, with the potential to capture over 500,000 vehicles in these regions.
Opportunity Five: Transition to intelligent new energy vehicles. In the intelligent new energy vehicle sector, CHANGAN Automobile plans to unveil over 10 products, driving new energy vehicle sales beyond 2.4 million by 2030. With a cumulative investment of 200 billion RMB and the addition of a tech innovation team exceeding 10,000, CHANGAN Automobile envisions leading the era of intelligent new energy vehicles through global collaborations.
In the concrete commitment to the transformation into an intelligent, low-carbon travel technology company, CHANGAN Automobile has forged a unique path for the transformation of Chinese automotive enterprises, laying a solid foundation for the future global competitive landscape and instilling confidence in the upward development of Chinese brands. By aligning with internal and external changes and shaping the Innovation, the Entrepreneurship 7.0 version is formulated. CHANGAN Automobile is set to embark on the "215" Partner Initiative, emphasizing "Two Upgrades", promoting "One Key Relationship", and achieving "Five New Leaps".
The "Two Upgrades" is addressed through two key aspects. Firstly, we are committed to enhancing both new energy and traditional fuel vehicles, maintaining the business approach of "dual focus, coexistence with mutual progress" for traditional and new energy vehicles. Second, we prioritize simultaneous growth in both the domestic and international markets. Building upon a stable domestic foundation, we place greater strategic importance on globalization, creating a new development pattern characterized by a dual circulation between the international and domestic markets.
Promote "One Key Relationship". CHANGAN will uphold the principles of "integrity, equality, and mutual benefit", working together with dealers, suppliers, and valued customers to jointly uphold a partnership characterized by "sharing risks, creating value together, and sharing benefits". This involves enhancing ties with suppliers, elevating global automotive partnerships, and strengthening relationships with dealers and customers.
Achieving "Five New Leaps". CHANGAN will strategically plan and layout across five dimensions—transformational upgrade, brand elevation, technological leadership, collaborative development, and service experience in order to comprehensively propel CHANGAN into a new era of advancement. This multi-dimensional approach signifies CHANGAN's commitment to an all-encompassing transition toward new horizons.
Based on the "215" strategic blueprint, CHANGAN has formulated an overarching strategy of "ensuring market position, consolidating brand standing, and solidifying technological presence". In 2024, CHANGAN, in collaboration with strategic partners, aims to develop sustainable leading-edge intelligent technologies, accelerate the expansion of overseas markets, and establish a global footprint. The company is dedicated to achieving a sales target of 2.8 million vehicles, the breakdown of the target includes 1.25 million units for CHANGAN AUTO, 250,000 units for CHANGAN NEVO, 280,000 units for DEEPAL, 90,000 units for AVATR, 230,000 units for KAICHENG, and 480,000 units for the overseas market.
As CHANGAN Automotive celebrates 40 years in the automotive industry, its first-ever Software-Defined Car, equipped with the SDA Super Platform architecture, is set to meet various customized solutions in both software and hardware. This intelligent and innovative vehicle, integrating "Intelligent Brain", "Intelligent Body", and "Intelligent Service", has been officially welcomed into the CHANGAN NEVO family. Automotive President Wang Jun announced that it will be named CHANGAN NEVO E07 and is scheduled for mass production in October this year.
Standing as the gem on the CHANGAN NEVO line, CHANGAN NEVO E07 can achieve scenario-based functions such as "one-touch transformation, safety companionship, and self-charging", making CHANGAN Automotive the pioneer in bringing Transformers to life. While CHANGAN AUTO serves as the present cornerstone of the company, CHANGAN NEVO is poised to become its future foundation.
CHANGAN Automotive stays true to the customer centric "Project ONE" initiative. Following the Partner Conference, the Eighth Fan Festival kicked off with passion. Over the years, CHANGAN Automotive has integrated service into the complete lifecycle of the customer journey, encompassing "purchase, use, repair, and service". With steadfast dedication to customer-centric practices, the company is ushering in a new era of service experience. By prioritizing customers and introducing "Intelligent and proactive" services, CHANGAN is forging customer management into a distinctive competitive edge across its brands, moving from efficiently resolving issues to actively creating value and elevating the overall customer experience.
2024 won't mark the end of challenges, but it signals the embrace of more challenges. Yet, within this era of intensified challenges lies an era teeming with opportunities. Zhu Huarong envisions, "By 2030, forecasts point to 37 million cars manufactured domestically, with 30 million finding a home in the Chinese market and 7 million traversing international borders. The continual rise in the penetration rate of new energy vehicles, averaging a 13% annual growth over the next 5 years". Presently, Chinese brands stand at a historical juncture, fortified with the foundation and prowess to shape world-class automotive brands. CHANGAN Automotive, guided by the Third Business Venture – Innovation and Entrepreneurship Plan 7.0, is steadfastly transitioning into a smart and low-carbon travel technology company. CHANGAN Automotive is confident and poised to become a world-class brand!