Changan Automobile takes a bet on Europe

Changan Automobile, one of China's leading automakers vying for a wider global footprint, is speeding up its push into the sizzling European market, deepening efforts to tap the growing demand abroad for cutting-edge new energy vehicles.

The Chongqing-based company announced recently that it plans to make a foray into 10 European markets, with a target of setting up over 200 retail stores across the region by the end of this year.

"We'll start to build brand presence in Norway, move into Germany and the United Kingdom by mid-year, and then expand into Spain, Italy, and Poland, which will then act as a gateway to Eastern Europe," said Changan Automobile Chairman Zhu Huarong on the sidelines of the ongoing Chongqing International Auto Exhibition that runs through Sunday.

"We plan to cover all major European markets by 2028."

In March, the company launched an event in Germany, during which the carmaker showcased eight models under three brands — Changan, Deepal and Avatr.

"Europe is a significant overseas market for us and we hope to learn from and work with the best players in the automobile sector," Zhu said.

"With proven strengths in NEV technology, intelligent features and design, Changan Automobile is ready to deliver its best products and experiences to customers across Europe.

"We are committed to long-term growth and local operations — 'In Europe, for Europe'. We are also building localized research and development centers and production facilities in the market."

With support from about 500 local designers across Europe, Changan Automobile said it believes it can provide the best products for European customers.

"One of our recipes for success is to establish a deep relationship with customers, understand their needs and invest in the user experience. Our team, consisting of more than 31 nationalities, will create experiences and products that deeply resonate with customers," said Klaus Zyciora, vice-president at Changan Automobile and head of the group's global design.

"I'm very optimistic that we can bring to Europe products people really admire and love," said Zyciora, who used to work as an automotive designer at Volkswagen.

Looking ahead, building a strong brand will be very important for Chinese carmakers to thrive in the European market, Trevor Lewis, deputy director of innovation and industry at the UK Department for Business and Trade, said during a forum at the Chongqing auto expo.

He said Chinese companies should build local plants, invest in R&D and provide quality services to deeply connect with local customers.

The company's annual sales volume reached 2.683 million units in 2024, a 5.1 percent increase year-on-year, a record in seven years. Sales volume of NEVs reached 734,000 units, surging 52.8 percent on a yearly basis.

Changan Automobile ranks third after Chery and SAIC in terms of vehicle exports with 536,000 units, up 49.6 percent from the previous year.

Chinese carmakers led global exports in recent years. China's auto exports increased 23 percent year-on-year to 6.4 million units in 2024, over 50 percent higher than next-placed Japan, according to consultancy AlixPartners.

For Changan Automobile, a State-owned enterprise, globalization is always a focus as many Chinese automakers are deploying localized production in overseas markets.

Changan Automobile's 20 overseas factories will be established in countries including Egypt, Kazakhstan, Brazil and Indonesia. Among the 20, nine have started operations.

The company unveiled in May its first overseas NEV manufacturing plant in Thailand. With an initial investment of 10 billion baht ($306.3 million) for the first phase, the plant will produce vehicles for economies of the Association of Southeast Asian Nations and for global right-hand drive markets.