Changan Automobile Chairman Zhu Huarong announced on April 21st that the group will integrate its two primary new energy vehicle (NEV) brands, Avatr and Deepal, a news agency reported.

Speaking at a post-conference briefing following the group's "1445" Global Strategy launch, Zhu stated that the integration is intended to streamline mid- to back-end operations, including research and development, supply chains, and manufacturing, by the end of 2026.

Shared resources, distinct identities

Under the "independent front-end, collaborative mid- to back-end" model, Avatr and Deepal will retain separate brand identities, product line-ups, and sales channels.

The sharing of backend infrastructure is expected to reduce resource costs by 20% to 30%. Zhu outlined a "three no-changes" commitment, stating that the group's overarching strategy, individual brand positioning, and existing user rights will remain unchanged following the reorganisation.

Scaling strategy

The integration is part of Changan's plan to establish a mid- to high-end product portfolio. By 2030, the group has set a combined sales target for the two brands.

Deepal is positioned in the CNY 150,000-300,000 (US$ 20,730-41,460) segment, while Avatr will focus on the CNY 250,000-700,000 segment.

Industry developments and product activity

The integration coincides with Changan's ongoing product activities in international markets. Deepal has launched the S05 SUV in the United Kingdom, featuring a WLTP range of 303 miles and 3C charging capability. Avatr has opened pre-sales for the 955 PS Avatr 06T wagon, priced from CNY 230,100.

In the first quarter of 2026, the two brands recorded differing domestic performance. According to data from the a market research firm, Deepal reported a 5.2% year-on-year (YoY) increase, while Avatr recorded a 41.6% YoY decline compared with the same period in the previous year. The consolidated backend approach is intended to support Avatr's positioning while enabling Deepal's growth.

"1445" Global Strategy context

The integration forms part of Changan's "1445" strategy, which targets total annual sales by 2030. Within this framework, NEVs are expected to account for more than 60% of total volume, while international markets are projected to contribute over 40% of total sales. In 2025, the electric vehicle segment recorded a 51.1% increase.