Automobile Changan has taken over a former Beijing Hyundai factory located in Chongqing, China. The move is aimed at boosting production capacity for its Deepal brand vehicles. This strategic acquisition comes as Changan strives to meet ambitious sales targets while facing limitations in current manufacturing capabilities.
The change of ownership was initially reported by The Economic Observer and has since been confirmed by Deepal. By the end of October, new logos were already installed at the facility, although production hasn’t started yet. This shift is part of Changan’s growth strategy, with a goal to produce three million vehicles in 2025 compared to just over two million last year.
Beijing Hyundai, a joint venture between Hyundai and BAIC, opened this plant in Chongqing back in 2017. However, due to lower-than-expected production needs, it ceased operations in December 2021. The factory’s closure was a significant blow given its initial investment of over one billion dollars with an annual capacity for up to 300,000 vehicles.
Hyundai’s plans in China were largely centered around combustion engines and traditional models before they fully embraced electric mobility. Their late entry into the growing EV market has put them at a disadvantage compared to local competitors like BYD and NIO who have been dominating the segment. As we reported, BYD is leading the charge in electric vehicle market growth, especially outside of China.
Changan isn’t the first Chinese manufacturer to take over a joint venture factory that was underutilized. In 2021, Li Auto also acquired another Beijing Hyundai facility and now Geely has followed suit with an SAIC-GM plant in Shenyang. These moves reflect ongoing shifts within China’s automotive industry as companies adapt to new market dynamics.
With the takeover of this factory, Changan aims to accelerate production for Deepal’s electric vehicles such as the S05 and S07 SUVs scheduled for release in Germany. The company is also making a push into international markets like the Netherlands where it has partnered with Emil Frey Group. Additionally, in China itself, the recently launched Deepal L06 sedan offers another entry point for consumers looking at mid-range electric options.
