Changan Auto Hits Record 2025 Sales but Sees Decline in Net Profit; Accelerates Push into NEV and Overseas Markets

Changan Automobile reported RMB 164 billion in revenue for 2025, an increase of 2.67% year-over-year (YoY). Full-year vehicle sales reached 2.913 million units, up 8.5% YoY—marking a nine-year high and representing the sixth consecutive year of growth. Net profit attributable to shareholders amounted to RMB 4.075 billion, down 44.34% YoY, primarily due to a significant decline in non-recurring gains and losses. Excluding non-recurring items, net profit stood at RMB 2.795 billion, up 8.03% YoY. In 2025, total non-recurring gains and losses amounted to RMB 12.8 billion, a decrease of RMB 34.54 billion (or approximately 73%) compared to RMB 47.34 billion in 2024. Key contributors to this decline included: - Gains/losses from disposal of non-current assets, which fell from RMB 25.5 billion to RMB 1.73 billion; - Government grants, which dropped from RMB 16.27 billion to RMB 5.59 billion; - Gains from disposal of fixed assets, which declined from RMB 24.66 billion to RMB 1.03 billion. The company’s overall gross margin was 15.54%, up 0.6 percentage points YoY, reaching 16.8% in Q4. Net cash flow from operating activities totaled RMB 1.836 billion, down 62.15% YoY, mainly due to shortened payment terms to suppliers, which increased operating cash outflows. R&D investment in 2025 reached RMB 12.6 billion, accounting for 7.67% of revenue, with R&D expenses amounting to RMB 7.158 billion. In terms of sales channels, the dealer model contributed 90.18% of revenue, while direct sales accounted for 4.78%. The NEV (new energy vehicle) segment delivered strong performance, with annual sales of 1.11 million units, up 51.1% YoY, and revenue of RMB 80.276 billion, up 36.3% YoY. Among Changan’s three NEV brands: - Qiyuan sold 410,000 units, up 42.6% YoY; - Deepal sold 325,000 units, up 44.4% YoY, with a net loss of RMB 899 million—significantly narrowed from 2024; - Avatr sold over 120,000 units, up approximately 63% YoY, and has exceeded 10,000 units in monthly sales for ten consecutive months. Based on product sales revenue of RMB 155.739 billion and total sales volume of 2.913 million units, the average selling price per vehicle in 2025 was approximately RMB 53,400, down about RMB 3,300 from 2024. Overseas sales reached 637,000 units, up 18.9% YoY, accounting for 21.9% of total sales. In March 2026, monthly exports surpassed 100,000 units for the first time, reaching 104,100 units. The overseas business posted a gross margin of 19.49%, roughly 5 percentage points higher than the domestic market. Changan’s Rayong plant in Thailand and its Brazil plant are now operational, with annual capacities of 100,000 and 60,000 vehicles, respectively. In the Middle East and Africa markets, Changan ranks among the top three Chinese brands in countries such as Saudi Arabia and Egypt. Changan has set a 2026 sales target of 3.3 million vehicles, including 1.4 million NEVs. By 2030, the company aims for total sales of 5 million vehicles, comprising 4 million from its own brands and 1.5 million from overseas markets. In 2026, Changan plans to invest RMB 14.47 billion, including RMB 4.47 billion in fixed assets to enhance R&D capabilities and RMB 10 billion in long-term equity investments targeting intelligent infrastructure, overseas platforms, flying cars, humanoid robots, and other emerging sectors. Over the next three years, the company will launch 43 new models, aiming to achieve full-market, full-segment coverage by 2028. In technology development, Changan will maintain R&D investment at over 5% of revenue annually during the “15th Five-Year Plan” period (2026–2030), focusing on intelligent driving, AI-powered cabins, and next-generation batteries. Its self-developed battery brand “Jinzhongzhao” continues to advance, with solid-state batteries expected to complete vehicle integration validation in 2026 and enter gradual mass production in 2027. Deepal has received China’s first official L3 autonomous driving access permit and, in December 2025, obtained the country’s first dedicated L3 license plate. In March 2026, it secured an L4 self-developed Robotaxi testing license. Additionally, in April 2026, Changan established Changan Tianshu Intelligent Robotics Company, targeting mass production of humanoid robots by 2028 and the launch of commercial eVTOL (flying car) services by 2030.