A merger between Changan and Dongfeng may materialise
- For many years, the Chinese government has been encouraging local carmakers to merge in order to reduce their numbers and create groups of international stature. But Chinese carmakers (even those controlled by the Chinese government) have so far failed to meet the expectations of higher authorities. The most convincing operation dates back to about twenty years ago, which involved the merger of the Roewe and MG brands within the SAIC group. The announcement of a possible merger between Changan and Dongfeng is therefore a major event in the Chinese automotive landscape.
- Changan and Dongfeng are today two mid-weight carmakers, behind large groups like BYD, SAIC, Geely or Chery, as the volume of 2,453,596 vehicles produced in 2024 by Changan (including 433,678 foreign vehicles produced in JV) and 2,251,705 vehicles produced by Dongfeng (including 1,485,031 foreign vehicles produced in JV) are much lower than those recorded by the four carmakers mentioned above. Dongfeng is among the most weakened Chinese carmakers since the fall of foreign car manufacturing in JV, Dongfeng's most profitable activity for a long time.
- Together, these two carmakers would produce 4,705,301 vehicles, a volume higher than that of BYD (4,272,145 units) or SAIC (4,036,218 units). They would thus become the largest Chinese carmaker. The objective of this potential merger is notably to combine the ressources of the two carmakers, while streamlining and optimizing platforms, engines, innovation and technologies to enable them to compete with large private groups such as BYD, Geely or Chery.