Strategic Integration of Avita and Deep Blue Automobile, Changan Zhu Hua Rong: Ranked in the Global Top 10 by 2030

In 2026, when the global automotive industry is in turmoil, the "entrance tickets" of the top players are becoming more expensive than ever. On April 21, at the Changan Automobile Group Global Strategy Conference, Chairman Zhu Huarong threw out a set of cold rules of survival: In the next three to five years, the competitive landscape of the automotive industry will be basically stereotyped, and the threshold of the global top 10 automobile companies will continue to rise. Businesses that sell between 8 million and 10 million vehicles a year “live well,” while 3 million are on the verge of “survival.” Based on this prediction, Changan Automobile officially released the "1445" strategy, clearly proposing that by 2030, it will be among the top 10 automobile companies in the world, achieving a fivefold increase in new energy vehicle sales, overseas vehicle sales, operating revenue, total profit, and brand value: 2.4 million new energy vehicles; 1.5 million overseas vehicles; operating revenue of 600 billion yuan; brand value of 200 billion yuan. At the same time, Changan Automobile will integrate resources and promote the comprehensive strategic synergy between its new luxury brand Avita and the mid- and high-end new energy brand Deep Blue. This move not only marks Changan's shift from simple "scale expansion" to "efficiency-driven", but also indicates that Chinese car companies are looking for better solutions between brand internal wear and collaborative development. The core of the restructuring of the high-end brand moat Chang 'an lies in "front-end independence, middle-end and back-end synergy". Zhu Huarong said that by 2030, Avita and Deep Blue will jointly build a high-end brand group of 1.5 million vehicles. Among them, Avita locked in 500,000 vehicles, and Deep Blue carried the heavy responsibility of 1 million vehicles. From a financial point of view, although Changan Automobile's operating revenue has steadily increased to 164 billion yuan in 2025, the attributable net profit has shrunk by 44.34% compared with 2024. Behind the pressure on profits, in addition to the fierce price war, the upfront investment and R&D amortization of the new brand are the main constraints. As a result of the integration, the two brands will achieve deep synergy in R&D, procurement, manufacturing and support departments. With reference to Geely, this "extremely krypton, Linke merger" brand restructuring can release a huge space for cost reduction. At the technical level, through the unification of the three-electric system, the cockpit, the intelligent driving architecture, and the underlying software middleware, R&D costs are expected to be reduced; on the supply chain side, standardized carding will also bring cost reductions. For Deep Blue and Avita, which are still in the period of loss reduction, this is undoubtedly a strategic move to accelerate the turnaround of losses into profits and improve the overall profitability of the group. However, variables in the integration process remain. How does Avita's IPO plan balance with Deep Blue's asset securitization? Under the difference in shareholding structure, will the financial balance sheet and resource scheduling of the two major brands be constrained? These questions remain unanswered. However, for Changan, internal integration can complete the reshaping of the brand structure, so as to achieve greater competitiveness. If brand integration is the "throttling" of the organizational dimension, then the streamlined layout of the cutting-edge technology and product matrix is Changan's "open source" in the strategic dimension. While pursuing scale, Changan is carrying out an aggressive "slimming" campaign. According to the latest plan, Changan's product lineage will be reduced from the current 63 models to 36 models in the next five years, a decrease of up to 43%. This means that Changan will completely bid farewell to the "car and sea tactics" and turn to the "global big product". The logic of this adjustment lies in the efficient allocation of resources. Zhu Huarong plans to create a global boom with an annual sales of 500,000 vehicles and five models with an annual sales of 300,000 vehicles, which is supported by the ambitious goal of achieving the production and sales of 2.4 million vehicles (3.6 million vehicles) by 2030. It is worth mentioning that in the field of new energy technology, Changan Automobile has continued to deepen its cultivation, and the self-developed battery brand "Golden Bell Cover" has better thermal insulation performance than 30% of the industry, and the battery has zero overheating. The research and development of solid-state batteries is progressing steadily. It is expected to complete the loading verification in 2026 and promote the gradual mass production of all-solid-state batteries in 2027. At present, many car companies have entered the field of intelligence, which is also one of the important directions of automotive ecological competition. Zhu Huarong mentioned that the offline humanoid robot will be mass produced in 2028, and will gradually expand to home service robots after 2030, and achieve mass production and delivery of flying car products in 2028. In terms of autonomous driving layout, Zhu Huarong said that China's Changan Automobile plans to achieve L3 mass production by 2027 and full-scenario L4 by 2028. The overseas market has become the "second curve" of profit growth In the process of reshaping the profit structure, the overseas market is accelerating its transformation from a "growth engine" to a "profit pillar". According to the 2025 data, Changan Automobile's overseas sales volume has reached 637,000, and its gross profit margin of 19.49% is significantly better than the domestic business level, which has become an important increase in the group's profitability. In March this year, overseas monthly sales exceeded 100,000 units, showing a strong expansion inertia. This brilliant performance is due to Changan Automobile's deep cultivation from the strategy of "going to sea through trade" to "going to sea through industry". As a Chinese automobile company that opened globalization earlier, Changan's layout dimension has evolved from a simple vehicle export to a whole industry chain system that covers R&D, production, marketing and service. In 2025, with the official start of production of the first overseas new energy vehicle factory in Rayong, Thailand, Changan achieved capacity landing in the Southeast Asian market, effectively solving the long-term after-sales maintenance bottleneck of Chinese brands in the sea. At the same time, Changan has established a mature sales and service network in many European markets such as Norway and the Netherlands through in-depth cooperation with Emil Frey, a leading European distributor group, and the brand's international reach has further extended to developed countries. Compared with the only 17 export models in 2020, by 2025, Changan's overseas product family has expanded to 41 models, covering 25 traditional fuel vehicles and 16 new energy vehicles, forming a diversified supply pattern of "oil and electricity together". At present, Changan's total overseas production capacity has exceeded 800,000 units, providing a solid hardware base for global competition. Looking to the future, "doubling overseas sales" has become a key springboard for Changan to become a world-class camp. According to the "1445" strategic plan, by 2030, Changan's overseas sales target will be 1.5 million swords (1.8 million swords), and the proportion of overseas sales will increase to 35% -40%. This layout is not only a price game for hedging the domestic stock market, but also a strategic hard target for Changan to achieve a revenue scale of 600 billion yuan and steadily rank among the top 10 global automobile companies.