On the evening of April 27, Changan Automobile (000625.SZ) released its first-quarter report for 2026. In the first quarter of this year, Changan Automobile’s revenue was 32.706 billion yuan, a year-on-year decline of 4.26%. The net profit attributable to shareholders of the listed company (hereinafter referred to as “net profit”) was 351 million yuan, a year-on-year decline of 74.09%, hitting the lowest point in five years.
△ Photo source: Photographed by a reporter from Time Weekly
Changan Automobile stated that the change in the “net profit attributable to shareholders of the listed company” was mainly due to the impact of exchange gains brought about by exchange rate fluctuations in the same period last year.
Last week, Zhu Huarong, the chairman of China Changan Automobile Group (hereinafter referred to as “the Group”), announced that it would integrate resources and promote the comprehensive strategic collaboration of its high-end brand Avita and new energy brand Deepal. The front end will be independent, and the middle and back ends will be collaborative, while maintaining the independent operation of the brands. This move was interpreted by the industry as Changan Automobile’s integration of its two brands.
Both Avita and Deepal were established in 2018. In 2025, Avita sold more than 120,000 vehicles throughout the year, contributing about 4% to the Group’s overall sales. Deepal sold 333,000 vehicles throughout the year, a year-on-year increase of 36.6%, and was a key growth point within Changan Automobile.
However, Changan Automobile’s overall sales volume in the first quarter of this year declined significantly year-on-year, which may force the Group to take countermeasures and make changes.
At the close of trading on April 28, Changan Automobile was quoted at 9.73 yuan per share, down 1.02%, with a total market value of approximately 96.453 billion yuan.
Nearly 150,000 fewer vehicles sold in the first quarter
In the first quarter, Changan Automobile’s revenue and profit levels both dropped to the lowest in five years.
Changan Automobile’s revenue in the first quarter was 32.706 billion yuan, a 4.26% decline compared with the same period last year. This was the first time since 2022 that the first-quarter revenue fell below 34 billion yuan. In the same period this year, Changan Automobile’s net profit dropped to 351 million yuan, a year-on-year decline of 74.09%.
Changan Automobile explained that the significant decline in net profit this time was “mainly due to the impact of exchange gains brought about by exchange rate fluctuations in the same period last year.” A reporter from Time Weekly asked Changan Automobile about other factors that might have led to this result, but as of press time, no reply was received.
In the first three months of this year, Changan Automobile’s cumulative vehicle sales reached 557,501, a year-on-year decline of 20.94%, nearly 150,000 fewer vehicles sold compared with the same period last year. Similarly, this was also the lowest first-quarter sales volume of Changan Automobile in the past five years.
Specifically, looking at the three new energy vehicle brands under Changan Automobile: Avita’s retail sales volume in the first quarter was only about 11,000 vehicles. The retail sales volumes of Changan Qiyuan and Deepal in the first quarter were both around 50,000 vehicles. The contributions of these three brands to the Group’s overall vehicle sales were relatively limited.
In addition, according to a report by Cailian Press, Changan Automobile’s overall vehicle sales target for 2026 is 3.3 million vehicles. Based on this figure, Changan Automobile only completed 16.89% of the annual target in the first quarter. It needs to achieve an average monthly sales volume of 300,000 vehicles in the following months to have a chance to meet the annual target.
Changan Automobile starts to make adjustments
Under the pressure of performance, Changan Automobile has started a new round of internal adjustments.
On the afternoon of April 21, Changan Automobile announced that it would strategically integrate its two new energy vehicle brands, Avita and Deepal. Zhu Huarong said on that day that the integration of the two brands is expected to be completed by the end of the year, and the efficiency (of corporate operations) will be further improved after the integration.
The reporter learned that the goal of this integration is that by 2030, Avita’s annual vehicle sales will reach 500,000 vehicles, and Deepal’s annual vehicle sales will reach 1 million vehicles. Changan Automobile’s overall goal is to achieve the production and sales of 4 million to 5 million vehicles by 2030, with new energy vehicles accounting for more than 60% and overseas sales reaching 1.5 million vehicles.
“(The Group) is promoting the comprehensive strategic collaboration of its new luxury brand Avita and mid – to high – end new energy brand Deepal based on national strategies, corporate strategies, industry trends, and the competitive landscape. The front end is independent, and the middle and back ends are collaborative, while maintaining the independent operation of the brands,” a relevant person in charge of Changan Automobile told the reporter.
Zhao Fei, the general manager of China Changan Automobile Group, also said in an interview with a reporter from National Business Daily that this move aims to maximize the Group’s scale effect, integrate resources, and improve efficiency. Taking electric drive products as an example, if an electric drive product can be used commonly in the Group’s five brand business departments and six overseas regions, combined with an annual scale of 3 million vehicles, optimization can be achieved in terms of cost, quality, and delivery.
According to Changan Automobile, through resource integration and synergistic efficiency improvement, it is expected to reduce costs by 20% – 30%.
“Although some current industry challenges will bring short – term pain, the overall market is still promising. Changan Automobile will pursue multiple energy routes in parallel and make efforts in the global market simultaneously to have stronger risk – resistance ability and strategic flexibility,” Zhao Fei said at the recently opened Beijing Auto Show.
In Zhao Fei’s view, for an automobile group, an annual sales volume of 3 million vehicles in 2030 is just the threshold for survival, and an annual sales volume of 5 million to 8 million vehicles can be considered “living well.” In 2025, Changan Automobile’s global sales volume was 2.913 million vehicles. If it wants to reach the annual sales target of 5 million vehicles in the next five years, Changan Automobile still needs to achieve an incremental volume of 2.087 million vehicles.
This article is from the WeChat official account “Time Weekly” (ID: timeweekly), author: Wu Kai, published by 36Kr with authorization.
