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Changan Surprised The Market By Selling 7,422 Vehicles Per Day In The First Half Of 2024. Discover How This Brand Is Gaining Ground And May Threaten BYD
The automotive industry in China is recognized for its dynamism and innovation capacity, with BYD being one of the major examples. One of the brands that has been gaining more and more prominence is Changan Automobile, the oldest in the country, and one of the respected manufacturers of cars in China.
Founded in 1862, Changan started as a weapons manufacturer, but over the years has transformed into one of the largest automakers in the country, with a diversified portfolio that includes passenger vehicles, commercial vehicles, and electric vehicles.
With over 150 years of history, Changan remains one of the leading automakers in China, not only for the volume of sales but also for its commitment to sustainability and technological innovation. The brand has heavily invested in developing electric and hybrid vehicles, positioning itself as a strong competitor in the new energy vehicle (NEVs) market.
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Changan’s Growth And BYD’s Leadership
Although BYD remains the leader in the Chinese electric vehicle market, with a 34.6% market share between January and August, Changan has been quickly gaining ground.
The company currently holds 6% of the market and has shown solid growth in its sales. This year, Changan, driven by its new brands, Deepal and Avatr, achieved an impressive milestone by selling an average of 7,422 vehicles per day in the first half of 2024, registering a 9.7% growth compared to the previous year.
The figures are even more impressive when it comes to electric vehicles. Changan’s NEV sales increased by 69.87%, totaling over 300,000 units sold so far. Additionally, the brand has also expanded its international sales, with a 75.9% increase, totaling 203,000 units sold outside China. BYD remains the major leader in this regard.
Financial Performance
Despite the sales success, Changan’s profit did not follow the same trajectory. In the first half of 2024, the company’s revenue was 76.7 billion yuan (US$ 10.77 billion), an increase of 17.15% compared to the previous year.
However, net profit fell by 63%, dropping to 2.83 billion yuan (397.5 million dollars). This decline can be attributed, in part, to the financial results of the Deepal and Avatr brands, which, though they increased their sales, still operate at a loss.
Changan’s profit margins dropped significantly, from 6,322 yuan (888 USD) per car in 2023 to 2,121 yuan (298 USD) in 2024. This reflects a general trend in the Chinese automotive industry, where the average profit margin has fallen to 13.8% this year, compared to 16.34% last year.
However, Changan is confident that its NEV brands, especially Deepal, will achieve profitability. The company’s forecast is that Deepal will become profitable upon reaching the milestone of 30,000 units sold per month.
The Future Of Changan In The Electric Vehicle Market
Changan is in full transition to the era of electric vehicles, focusing on three main brands: Changan Nevo (also known as Qiyuan), Deepal, and Avatr. Between January and August 2024, Changan Nevo delivered 98,236 units, while Deepal and Avatr delivered 120,710 and 21,088 units, respectively.
Although the Deepal and Avatr brands are still operating at a loss, both have managed to reduce their deficits over the year. This, combined with the robust growth in NEV sales and continued investment in sustainable technology, suggests that Changan is well-positioned to become an even greater force in the global electric vehicle market in the coming years.
While BYD maintains its leadership, Changan’s accelerated growth signals that the race for the top of the NEV market is far from over. With its aggressive strategies and commitment to innovation, Changan may be a serious competitor in the coming years.
Nem consegui ler a matéria com tanta propaganda pipocando
Kkkk a BYD tem estoque para 3 anos de vendas, as vendas de eletricos em queda no Brasil, share de mercado dos carros elétricos é de 2.8%, era 3.2… carro elétrico é descartável não é nem de longe ecologicamente correto, é bom para centros urbanos mas só… carros a combustão sempre serão a maior fatia do mercado pois são mais práticos e de manutenção barata quando feita com frequência, carro elétrico uma bateria nova custa de 30 a 50% do valor do carro… totalmente inviavel