First sign of consolidation in the Chinese automotive industry? The two groups GAC and Changan have just concluded a strategic cooperation agreement, which will naturally largely concern electric vehicles.
Beijing has long sought to consolidate its automotive industry, aiming to reduce the number of players and create internationally significant “champions.” Up to now, this desire has not materialized in any significant operation since SAIC’s acquisition of Nanjing Auto in the late 2000s. Therefore, the alliance between GAC and Changan is highly symbolic.
For now, this is not a merger but simply a strategic agreement. However, the scope of the collaborations envisaged is relatively broad: platforms and technologies, industrial resources, trade, exports, and more.
The agreement is even more important as it involves major players and represents a significant alignment between central government manufacturers and local players.
Changan is one of the major state-owned manufacturers along with FAW and Dongfeng, and is also the most dynamic, convincing, and involved in electric vehicles. In terms of electric vehicles, Changan is known for its Deepal and Avatr brands, in partnership with CATL and Huawei, and more recently Qiyuan/Nevo.
As for GAC, it is one of the regional state-owned manufacturers and is also one of the most advanced in electrification through its Aion brand, the third largest in the Chinese electric market behind BYD and Tesla.
Both partners have planned to introduce some of their brands in Europe this year…