Digitalized, smart vehicles to spur Changan's growth

Changan expects its annual sales to reach 5 million units in 2025 as the State-owned carmaker has unveiled an ecosystem that centers on smart electric vehicles based on the software-driven architecture.

"Electrification is just the start and the digitalized smart vehicles hold the key to the future," said Zhu Huarong, chairman of Changan, on Monday.

Zhu said the first model of the ecosystem, the A07 that bears the newly unveiled Qiyuan marque, will start presales later this month.

He added that the model allows a big number of scenario-based services that customers can choose now or update later.

Zhu said the carmaker will follow the strategy of smart digitalized models, with over 20 heavyweight products to be launched by 2025.

Of them 10 will bear the Qiyuan marque, with four of them expected to hit the market this year. Another 10 are planned under the brands of Deepal and Avatr.

Changan has long been working heavily on smart and connected functions. It said that all of its models launched since 2020 have access to the internet.

Zhu said the carmaker now has a R&D team of 17,000 people. This year, its R&D expenditure will reach 16 billion yuan ($2.20 billion), accounting for 6.5 percent of its total sales revenue.

Changan sold 1.63 million vehicles from January to August this year, up 11.4 percent year-on-year.