China Launches New Central SOE Automotive Giant: Changan Automobile Established in Chongqing
第100家央企诞生 中国长安汽车落地重庆 未来5年推出超50款新能源产品
In July 2025, China officially launched Changan Automobile Group as a new central state-owned enterprise (SOE), headquartered in Chongqing. The move marks a milestone in China’s auto industry reform and signals strong national ambitions for innovation, global competitiveness, and Western regional development.
Background and Strategic Motivation:
Elevated Status: Previously a subsidiary under China South Industries Group, Changan Automobile now joins the ranks of FAW and Dongfeng as one of only three central SOEs in China’s auto sector—becoming the first such company based in the West.
State Reform and Regional Focus: The strategic upgrade reflects China’s determined push for supply-side reforms, innovation-driven growth, and support for Chongqing’s emergence as a domestic hub for “intelligent and connected NEVs” (new energy vehicles).
Why Establish a New Central SOE?
Driving Industrial Upgrade and Innovation:
The central SOE structure enables Changan to integrate capital, policy privileges, and top R&D talent at a national level. As the global auto sector rapidly pivots toward electrification and intelligent vehicles, streamlined central control can accelerate innovation in “software-defined cars,” smart mobility, and next-generation automotive technologies.Supply-Side Modernization:
As a SOE directly overseen by China’s State-Owned Assets Supervision and Administration Commission (SASAC), Changan is designed to be a model of institutional innovation, attracting strategic investment, breaking bureaucratic inertia, and acting as a platform for further market-based reforms within China’s auto industry.Building a World-Class Automotive Brand:
Beijing aims to propel Changan into the global automotive top 10 within five years, targeting overseas sales to account for more than one-third of turnover, and new energy vehicles to exceed 60% of total volume
Key Focus Areas and Strategic Initiatives:
New Energy Vehicles (NEVs):
Through initiatives like the “Shangri-La Plan,” Changan will roll out 50+ new NEV models in five years, partner with battery leaders such as CATL on solid-state technologies, and target breakthroughs in key electrified components.Smart and Connected Mobility:
The “Beidou Tianshu Plan” will see over $2.8 billion (RMB 20 billion) invested in advanced driver-assistance systems, in-car AI, autonomous driving, robotics, and even flying car prototypes—pushing the frontier of China’s smart vehicle ecosystem.Global Expansion:
The “Haina Baichuan Plan” positions Changan for robust export growth and localized manufacturing, focusing on Europe, the Middle East, and Central Asia from 2025 onward.Industrial Chain Integration and Innovation:
The group is ramping up core R&D around e-powertrains, smart chassis, and supply-chain security while embracing high-end manufacturing and digital logistics to align with China's “electrified, software-defined, and intelligent” industry trends.Corporate Governance Reform:
Plans include mixed-ownership reforms, strategic investor engagement, and future spin-offs—seeking to unlock dynamism through diversified investment and market discipline.
Broader Implications:
Changan’s upgrade spotlights China’s ongoing state sector transformation and elevated focus on high-tech, globally competitive industries. With Chongqing as its base, the group is poised to help drive Western China’s leadership in advanced manufacturing and accelerate the nation’s ambition to create world-class electric and smart automotive supply chains.
For industry watchers, the establishment of central SOE Changan Automobile is both a signal of the Chinese government’s priorities and an indicator of where the next wave of investment and innovation in China’s auto sector will be focused.