Changan Auto Plans to Integrate Avatr and Deepal Brands, Targeting Combined Annual Sales of 1.5 Million by 2030

Changan Automobile plans to strategically integrate its two new energy vehicle (NEV) brands, Avatr and Deepal, with completion expected by the end of 2024. The integration will follow a “front-end independence, mid-to-back-end synergy” model—maintaining independent brand operations while enhancing operational efficiency. The goal is for Avatr to achieve annual sales of 500,000 units and Deepal 1 million units by 2030. In 2025, Deepal sold 325,000 vehicles, up 44.4% year-over-year, generating revenue of RMB 50.24 billion, a 35% increase from the previous year. Avatr sold approximately 120,000 units in 2025, marking growth of over 60% year-over-year but falling short of its annual target of 220,000 units. Founded in 2018 as Changan NIO, Avatr rebranded as a premium NEV marque co-developed by Changan Automobile, Huawei, and CATL, with CATL as a major shareholder and Huawei providing its full-stack HI intelligent automotive solution. In October 2025, Avatr paid Huawei RMB 11.5 billion to acquire a 10% stake in Huawei’s subsidiary, Yinwang. Deepal, also established in 2018, targets the mid-range market and maintains a certain level of collaboration with Huawei. Prior to announcing the integration, both brands underwent management reshuffles: in September 2024, Wang Hui succeeded Zhu Huarong as Chairman of Avatr; at Deepal, former CEO Deng Chenghao was promoted to Chairman, with Jiang Hairong appointed as the new CEO. This integration follows the elevation of China Changan Automobile Group to an independent central state-owned enterprise in July 2024. The group was spun off from the automotive division of China South Industries Group Corporation and is headquartered in Chongqing. Zhu Huarong, Chairman of Changan Automobile, stated that over the next five years, the company will launch more than 50 new energy models across its three brands—Avatr, Deepal, and Changan—and plans to invest RMB 200 billion in its new automotive business over the next decade. Avatr is currently preparing for an IPO, aiming to list on the Hong Kong Stock Exchange in 2026, though it remains unclear whether the integration will affect its listing timeline. Neither party has commented on whether the integration will impact their cooperation with Huawei.