- Changan Automobile will integrate backend operations of Avatr and Deepal to cut costs and improve efficiency.
- The company aims to achieve 1.5 million annual NEV sales from both brands by 2030.
Changan Automobile has initiated a major restructuring move by announcing the strategic integration of its two New Energy Vehicle brands, Avatr and Deepal. The decision, confirmed by Chairman Zhu Huarong on April 21, focuses on optimizing operational efficiency while preserving brand independence. This initiative aligns with the company’s broader transformation goals in the fast-evolving electric vehicle landscape, particularly within China, where competition and innovation continue to accelerate at scale.
Backend Integration with Independent Brand Identity
The restructuring follows a clear “independent front-end, collaborative mid-to-back-end” model. Under this framework, Avatr and Deepal will continue operating with distinct product strategies, brand positioning, and customer engagement channels. However, critical backend functions such as research and development, supply chain management, and manufacturing will be unified by the end of 2026. This shared infrastructure approach is projected to reduce operational costs by 20% to 30%, enabling more efficient resource utilization without disrupting customer experience or brand identity.
Strategic Sales Targets and Market Segmentation
This integration supports Changan’s ambition to establish a strong mid-to-high-end NEV portfolio. By 2030, the combined annual sales target for Avatr and Deepal is set at 1.5 million units. Deepal will focus on the volume-driven segment priced between 150,000 and 300,000 yuan, aiming to achieve 1 million units annually. In contrast, Avatr is positioned in the premium segment ranging from 250,000 to 700,000 yuan, with a target of 500,000 units per year, strengthening its presence in the luxury electric vehicle category.
Sales Target Segmentation of Avatr and Deepal
| Brand | Price Range (Yuan) | 2030 Annual Target |
|---|---|---|
| Deepal | 150,000 – 300,000 | 1 Million Units |
| Avatr | 250,000 – 700,000 | 500,000 Units |
Product Expansion and Global Market Push
The integration comes at a time when Changan is accelerating its global expansion efforts. Deepal has recently entered the UK market with the launch of the S05 SUV, offering a WLTP-certified range of 303 miles along with 3C fast-charging capability. Meanwhile, Avatr is advancing its footprint in the high-performance EV segment by opening pre-sales for the Avatr 06T wagon, delivering 955 horsepower and priced from 230,100 yuan. These product developments highlight the dual-brand strategy aimed at both volume growth and premium positioning.
Performance Trends and Strategic Rationale
Recent sales performance indicates contrasting trajectories between the two brands. In the first quarter of 2026, Deepal recorded 53,601 deliveries, reflecting a 5.2% year-on-year increase. Conversely, Avatr reported 11,703 units sold, marking a 41.6% decline compared to 20,041 units in the same period of 2025. The backend integration is expected to address these disparities by stabilizing Avatr’s premium ambitions while accelerating Deepal’s growth through operational efficiency and shared resources.
Alignment with the 1445 Global Strategy
This integration forms a critical component of Changan’s “1445” Global Strategy, which targets total annual vehicle sales of 5 million units by 2030. Within this vision, New Energy Vehicles are projected to contribute over 60% of total sales, while international markets are expected to account for more than 40%. The company’s 2025 performance already demonstrated strong momentum, with 2.91 million vehicles sold globally, including 1.11 million NEVs, representing a 51.1% increase in the electric vehicle segment.
Frequently Asked Questions
Why is Changan Automobile integrating Avatr and Deepal?
Changan Automobile is integrating Avatr and Deepal to improve operational efficiency by sharing backend resources such as R&D, supply chain, and manufacturing while maintaining independent brand identities. This strategy enables cost reduction, better resource utilization, and scalability across both premium and mass-market segments. The integration also supports long-term growth targets, stabilizes performance differences between the two brands, and aligns with the company’s broader goal of strengthening its position in the global electric vehicle market.
What are the sales targets for Avatr and Deepal by 2030?
By 2030, Deepal aims to achieve annual sales of 1 million units by focusing on the mid-range electric vehicle segment, while Avatr targets 500,000 units annually in the premium segment. Together, they are expected to contribute 1.5 million units to Changan’s total sales goal. These targets are part of the company’s broader strategy to expand its NEV portfolio, strengthen market segmentation, and increase global competitiveness through a balanced approach to volume and high-end vehicle offerings.
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