Changan Automobile's Strategic Move to Establish a Subsidiary in Germany

Wednesday, 4 September 2024, 06:00

Changan Automobile leads the way in international expansion with its new subsidiary in Germany. This move is part of Changan's strategy to conquer the European market through innovative ventures and increased production capabilities.
South China Morning Post
Changan Automobile's Strategic Move to Establish a Subsidiary in Germany

Changan Automobile's European Expansion

Changan Automobile, the Chinese partner of Ford and Mazda, is making waves in the automotive industry by establishing its first subsidiary in Germany, Changan Automobile Deutschland. This strategic initiative is aimed at enhancing marketing and engineering research to bolster Changan's presence in Europe.

Significance of the German Subsidiary

The formation of the German arm echoes Changan’s determination to solidify its foothold in Europe. As stated by the company, this move aligns with its Vast Ocean strategy, which seeks to expand beyond mainland China amid fierce competition.

Investment Plans and Production Strategies

  • Changan plans to invest $10 billion overseas by 2030.
  • Projected overseas vehicle sales aim for 1.2 million units annually.
  • Establishment of an EV factory in Thailand with a capacity of 100,000 units per year.

Market Challenges and Opportunities

Despite upcoming tariffs from the European Union on Chinese EV imports, market experts emphasize Europe's ongoing allure for Chinese manufacturers due to the substantial size and profit potential. Notably, Changan reported a significant increase in overseas deliveries, reaching 228,000 vehicles this year, up 67.6% from the previous year.

The Competitive Landscape

  1. BYD launched a price war affecting the entire industry, causing vehicles' prices to drop significantly.
  2. Chinese EVs boast a 35% lower production cost than their global competitors.

This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.

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