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Changan Automobile’s Global Strategy Unveiled in Southeast Asia

Nov 28, 2023

As a key part of Changan Automobile’s “Embracing the World” plan, the Changan Automobile brand held a press conference in Southeast Asia on November 27th. At the conference, Changan Automobile Chairman Zhu Huarong announced the specific plans for the Thai and Southeast Asian markets.

Changan Automobile's Global Strategy Unveiled in Southeast Asia

Changan Automobile is affirming the significance of the Thai market as a “bridgehead” for its Southeast Asian and global strategies. The company plans to establish a strong presence in Thailand, reaching out to other Southeast Asian countries and the global right-hand drive market, marking the beginning of a new chapter in globalization. Notably, Changan Automobile has introduced two new energy products, the DEEPAL L07 and DEEPAL S07, into the Southeast Asian market for the first time, and they will be officially launched at the Thailand International Auto Show on the 29th. Turning Thailand into a bridgehead for global strategy China has become the world’s largest exporter of automobiles, with its new energy vehicles leading the global market. As a member of the national team for new energy vehicle manufacturing, Changan Automobile actively responds to the national “Belt and Road” initiative, aiming not only to “go global” but also to “integrate into” the global market, achieving a win-win development pattern. As of June 2023, Changan has established over 400 sales and service outlets in more than 60 countries along the “Belt and Road” route, including Saudi Arabia and Chile, and has nearly 900,000 loyal customers. In 2022, 90% of Changan Automobile’s exports came from countries along the “Belt and Road” route, with a total output value exceeding 12 billion yuan. In the first half of 2023, Changan Automobile’s export volume of complete vehicles ranked among the top three among Chinese automobile export companies.

Changan Automobile's Global Strategy Unveiled in Southeast Asia

This press conference is not only an important part of Changan Automobile’s connection with Thailand, but also a new base created through new technology, new products, and a new brand, creating a new life and reaching the future with Thai partners, and jointly creating a beautiful new journey. So, it is easy to understand why Changan Automobile chose Thailand as the “bridgehead” for its global strategy. As the largest car manufacturing and exporting country in Southeast Asia, as well as the largest electric car market, Thailand has a relatively complete advantage in the automotive industry chain. Public data shows that Thailand has developed into the 10th largest car production country and the 16th largest car sales market in the world, producing over 2 million cars annually, with nearly 700 first-tier automotive component suppliers. The mature automotive industry infrastructure plays a promoting role in accelerating the local full industry chain system construction for Changan. Another point not to be ignored is that Thailand is currently promoting the electrification transformation, becoming the electric car production center in ASEAN, and has introduced a series of industry policies including tax and fee reductions, consumer cash subsidies, and investment support to attract many automotive companies, including Changan, to invest, constituting an important part of the global industry chain. In addition, according to the Thai government’s plan, electric cars will account for 30% of the total output by 2030, aligning closely with the development strategy of Changan. Leveraging the momentum of intelligent new energy vehicles, Changan aims to achieve overseas leapfrogging with Thailand as its base. Furthermore, Thailand’s location advantage is evident, not only having a strong driving force in the Southeast Asian region but also exporting to global markets such as Australia, New Zealand, the UK, and South Africa. With Thailand as its base, Changan will serve the entire ASEAN region and even the global right-hand drive market, achieving overseas leapfrogging. To provide better services to Thai consumers, Changan has established the Southeast Asia Division, setting up three local companies and local operation teams in Thailand, operating with a “localization” approach to quickly integrate into Thailand.

Changan Automobile's Global Strategy Unveiled in Southeast Asia

At the press conference, Changan Automobile vividly outlined the new vision for “going global” in Southeast Asia. In terms of strategic implementation, they are committed to localized operations and driving overseas business development through the dual wheels of “trade + base”. It is reported that Changan Automobile will invest 20 billion baht to establish a new energy vehicle production base in Rayong Province, with a total capacity of 200,000 vehicles per year. The first phase will involve an investment of 10 billion baht and a capacity of 100,000 vehicles per year. The base has already started construction and is scheduled to start production in the first quarter of 2025, radiating to the global right-hand drive market. In terms of brand and products, Changan Automobile will fully introduce the three major digitalized product brands: DEEPAL, AVATR, and NEVO.

Changan Automobile's Global Strategy Unveiled in Southeast Asia

According to reports, Changan Automobile will introduce two new energy products, DEEPAL L07 and DEEPAL S07, to the Thai market. These two models are very stylish in design, attracting the liking of Southeast Asian consumers, and will be officially launched at the Thailand Auto Show on November 29. At the press conference, Klaus Ziocolla, Vice President of Changan Automobile, shared his thoughts on the design charm: “The industry-first grille-free front face and interactive light design of DEEPAL L07 break the traditional car layout, showcasing Changan’s creative leadership in design, winning the recognition and love of young users.” In addition, Changan Automobile also brought its high-end intelligent electric vehicle brand, Avita 11 and Avita 12, to debut in Thailand for the first time. At the press conference, they received high attention and demonstrated the confidence of Chinese new energy vehicles in facing global competition.

Changan Automobile's Global Strategy Unveiled in Southeast Asia

In addition, according to Changan Automobile’s plan, 15 new energy products will be launched by 2030 to promote the popularization of intelligent driving, assist in the implementation of Thailand’s 30@30 policy, promote the healthy and rapid development of Thailand’s new energy vehicle industry, and achieve the goal of electric vehicles accounting for 30% of the total vehicle production by 2030. In terms of marketing operations, Changan Automobile is rapidly building marketing system capabilities. Together with excellent Thai distribution partners such as Galax, Rungcharoen, Rama3, and Primus, Changan Automobile is quickly matching resources to build high-quality marketing capabilities, with the goal of completing the layout of major cities in Thailand by 2024. In customer service, Changan Automobile aims to provide more convenient and warm services for users in Thailand and Southeast Asia, launching the Thai version of the “Number One Project” with the goal of creating a better life for users. Furthermore, Changan Automobile will establish overseas customer contact centers, parts warehousing and distribution centers, and technical training centers. Training has already been provided to Thai dealers, aiming to continuously provide timely, enjoyable, and ultimate service experiences for users. It is not difficult to see that Changan Automobile’s entry into the Thai market is not just a simple product export, but an overseas expansion of the industrial chain. In doing so, Changan Automobile will not only promote the electrification transformation of the Thai automotive industry chain, but also further drive local employment and economic development. “Embracing the World” steadily advances, globalized process accelerates Since embarking on its third entrepreneurship in 2017, Changan Automobile has been steadfastly moving towards becoming a world-class automobile brand. In April of this year, Changan Automobile officially announced its overseas strategy “Embracing the World” plan: to achieve the “Four Ones” development goals overseas by 2030, including annual sales exceeding 1.2 million vehicles in overseas markets.

Changan Automobile's Global Strategy Unveiled in Southeast Asia

Currently, Changan Automobile has established 73 subsidiaries and 22 factories globally, with its products being sold in 63 countries and regions. The company has also partnered with over 1100 global suppliers and more than 9300 global distributors, including local enterprises such as Eternity@one and Infinite Automobile in Thailand.

Changan Automobile's Global Strategy Unveiled in Southeast Asia

In addition, Changan Automobile has also established a “six countries and ten locations” global research and development network in China, the United States, Germany, the United Kingdom, Japan, and Italy. It has set up 16 technology research and product development centers, 17 technology companies, and has a strong R&D strength with a total of more than 18,000 engineering and technical teams from 30 countries around the world. Now, the holding of the 2023 Changan Automobile brand Southeast Asia launch event signifies that Changan Automobile is about to enter the fast lane of development in Southeast Asia, and also marks a new stage in the globalization layout of Changan Automobile. The “Embracing the World” plan is once again accelerating. This entry into the Thai market is just a key step in the plan, and Changan Automobile is rapidly expanding into other global markets. In the American market, on October 21, Changan Automobile announced its Mexico strategy and pickup brand, and the Changan Land Explorer started pre-sale in Mexico; in the European market: the European headquarters is being prepared in an orderly manner, and a series of localized products will be developed and introduced, with plans to enter the European market by 2024. According to the plan, Changan Automobile will also establish regional headquarters in the Americas, Africa, and other regions in a timely manner, and will continue to deeply cultivate localized operations, providing local users with more intelligent, low-carbon, and technological digital new car products and the ultimate service experience, allowing the world to feel the charm of Chinese intelligent manufacturing.

Changan Automobile's Global Strategy Unveiled in Southeast Asia

In the domestic market, Changan Automobile has been making frequent new moves. Last week, it reached a cooperation with NIO in the battery swapping business. The two sides will cooperate in four areas: establishing battery swapping standards, establishing a swapping system, establishing a battery asset management mechanism, and pre-research on swapping products, to jointly promote the high-quality development and low-carbon transformation of the automotive industry.

Changan Automobile's Global Strategy Unveiled in Southeast Asia

Recently, Changan Automobile has signed a “investment cooperation memorandum” with Huawei. According to the plan, Huawei plans to establish a new company, with Changan Automobile as the lead investor, and the company will focus on the research and development, production, sales, and service of intelligent driving systems and incremental components for smart connected vehicles. This move will bring new breakthroughs for Changan Automobile in both the market and financial aspects, and will also lead to a significant increase in sales in the future. According to Changan Automobile’s future development goals, they strive to achieve group sales of 5 million vehicles by 2030, with Changan brand sales reaching 4 million and overseas sales reaching 1.2 million. In summary, with the accelerated layout in overseas markets, Changan Automobile and China’s intelligent manufacturing will further strengthen their influence in the international market. Changan Automobile’s goal of transforming into a smart and low-carbon travel technology company will also receive new support. From a broader perspective, Changan Automobile’s advancement in globalization is not only a speeding up of its own globalization strategy, but also a leader in China’s automotive industry entering the 4.0 era, driving high-quality development in the Chinese automotive industry.