After eight years, Chongqing has reclaimed its title as "China's Automotive Capital." Industry analysts believe that new energy vehicles are the primary reason for Chongqing's return to the top.
As an important automotive manufacturing base in China, Chongqing has vigorously developed smart connected new energy vehicles over the past few years, accelerating the establishment of a world-class industrial cluster. In the first half of 2024, Chongqing's production of new energy vehicles reached 391,400 units, a year-on-year increase of 150%, placing it first among the top ten provinces and cities in the country for automotive production growth.
Another set of data shows that Chongqing's leading enterprise, Changan Automobile, sold 299,000 new energy vehicles in the first half of the year. When viewed together, it becomes clear that the ability of Chongqing's automotive industry to "overtake on a new road" and reclaim its title as China's top automotive city is inextricably linked to Changan Automobile’s ascent and leadership.
In Sync with Chongqing, Changan's Third Entrepreneurship Shines a Spotlight on "Made in Chongqing"
Chongqing, the headquarters of Changan Automobile, has always had its fate closely tied to Chongqing's automotive industry. In 1958, Changan Automobile designed and rolled off the production line the first Jeep in China, filling a gap in the country's automotive industry. This not only laid a foundation for Changan's future automotive endeavors but also established the groundwork for Chongqing to become "China's Automotive Capital."
By 2016, thanks to joint ventures like Changan Ford and Changan Mazda, Chongqing was crowned "China's Automotive Capital." At that time, Chongqing’s automotive production reached 3.16 million vehicles, meaning one out of every eight cars in the country was "Made in Chongqing."
However, after experiencing its glory, Chongqing's automotive industry sharply declined. At that time, China's automotive industry was entering a transitional phase, with overall market growth falling short of expectations. Changan Automobile also began to face growing pains during its transformation, with sales of its joint venture brands, once significant profit contributors, collectively declining, while the upgrades of Changan’s own brand models lagged, failing to keep pace with market changes.
To pull out of this slump, Changan Automobile launched its third entrepreneurship plan. In 2018, the year Changan declared the start of this new endeavor, the Chongqing government explicitly proposed vigorously developing smart connected new energy vehicles, firmly pushing for intelligence, greening, and branding to promote the transformation and upgrading of the automotive industry.
Based on this, Changan Automobile undertook significant internal reforms, while actively engaging in the fields of new energy and smart technology. They rapidly implemented three major initiatives: "Shangri-La" for new energy, "Beidou Tianxu" for intelligence, and "Haina Baichuan" for globalization, robustly advancing the "New Vehicle, New Ecosystem" strategy. Hard work paid off; by 2023, Changan's own brand of new energy vehicles ranked fourth nationwide in sales, reaching 477,000 units. Under Changan's leadership, "Made in Chongqing" vehicles are exported to over 80 countries and regions, with exports reaching 360,000 units, a year-on-year increase of 29%, generating an export volume of 33 billion yuan, up 50% year-on-year.
Unlike six years ago, "China's Automotive Capital" Chongqing no longer has to rely on joint ventures to maintain its image. At the same time, high-end smart electric brands like Avita, crafted by Changan, are revitalizing the "Made in Chongqing" label, changing the past perception of Chongqing-made vehicles as being relatively low-end.
Deepening Smart Technology for Fourteen Years, Changan Automobile Helps Chongqing Embrace a New Era of Digital Intelligence
Recently, Zhang Junwei, a researcher from the Macroeconomic Research Department of the State Council's Development Research Center, conducted an in-depth analysis of the economic development characteristics of major cities nationwide. He believes that "smart connected new energy vehicles have become a business card for Chongqing's new productive forces."
To seize the opportunity for the development of new energy vehicles, the Chongqing government has formulated a series of strategic plans. The "Chongqing Plan for Developing a World-Class Smart Connected New Energy Vehicle Industry Cluster (2022-2030)" aims to establish a grand goal of "striving to build a world-class smart connected new energy vehicle industry cluster." Additionally, Chongqing has placed smart connected new energy vehicles at the top of its three trillion-level leading industry clusters, showcasing its determination to deepen its focus on new energy.
According to the plan, by 2025, Chongqing aims to preliminarily form the prototype of a world-class smart connected new energy vehicle industry cluster. At the same time, the production and sales of "Made in Chongqing" smart connected new energy vehicles will account for over 10% of the national total.
To achieve the 2025 goals, Chongqing undoubtedly needs the support of Changan. Since 2010, Changan Automobile has been deeply engaged in the field of smart technology for 14 years, establishing a global intelligent research and development layout across "Two Countries and Four Regions." Changan has become the main battleground for developing smart connected new energy vehicles in Chongqing. It hosts several innovative platforms, including the "National Key Laboratory of Intelligent Vehicle Safety Technology," "Chongqing Key Laboratory for Automotive Intelligent Simulation," and "Chongqing Engineering Technology Research Center for Automotive Electronic and Electrical System Integration," all promoting advancements in intelligent driving safety and high-value technologies like high-security vehicle chips.
Currently, Changan has mastered over 1,500 core technologies across three major areas: driving, cabin, and intelligent driving, including 30 technologies that are launching domestically for the first time. These include integrated adaptive cruise control, AI-based intelligent in-car interaction systems, and APA 7.0 remote unmanned valet parking systems.
It is also worth mentioning that Changan has independently developed a globally leading central + regional ring network architecture—the SDA platform—endowing new vehicles with new capabilities for "intelligent brain," "intelligent body," and "intelligent service," enhancing users' digital intelligence experience.
Additionally, Changan has developed a full-stack self-researched interactive intelligent driving system, which will soon feature in the launch of the Qiyuan E07. It is reported that this new vehicle will possess humanoid intelligent driving capabilities once equipped with the end-to-end intelligent driving model.
Changan Automobile is comprehensively promoting intelligence in collaboration with its partners. Its subsidiary, Deep Blue Motors, has partnered with Huawei to accelerate intelligent equality in the mainstream market, with Deep Blue L07 and Deep Blue S05 set to feature Huawei's smart driving technology. Furthermore, as Changan's most important strategic brand vehicle for progress, Avita has invested in and acquired shares in Huawei's subsidiary "Yinwang." This investment underscores Changan Automobile's strategic intent to create an open platform for collaborative participation across the automotive industry. Through this platform, Avita will receive greater strategic support to push its intelligent technology to the forefront of the times.
In manufacturing, Changan Automobile and Huawei have jointly established a globally leading fully digital 5G smart factory. Reportedly, this factory is built on Huawei's digital foundation and has developed 16 types of intelligent scenarios, widely employing over 40 industry-leading digital and green technologies, achieving significant results with a 20% increase in manufacturing efficiency and a 20% reduction in production costs. The Avita 07, set for launch in the third quarter, is produced in this smart factory.
With this opportunity, Changan will engage in comprehensive cooperation with Huawei, strengthening Changan's capabilities in smart technology while also injecting strong momentum into both parties as they enter a new era of smart vehicles.
In Conclusion
Chongqing has returned to being China's Automotive Capital after an eight-year hiatus, breaking Guangzhou's winning streak. Behind this urban competition is, in fact, a battle of brands. In 2014, Chongqing's automotive production exceeded 2.62 million units, making it the largest automotive production base in the country at that time. That year, Changan’s brand of vehicles cumulatively broke the 10 million mark in sales, becoming the first Chinese brand to enter the "ten million club."
By 2021, Changan's brand of vehicles had cumulatively surpassed 20 million in sales. In the second half of this year, the launch of key models such as the Avita 07, Deep Blue L07, Deep Blue S05, and Changan Qiyuan E07 will undoubtedly support Chongqing's automotive industry to further advance, and the high quality and value of "Made in Chongqing" may once again sweep the globe.
