Changan Automobile Ventures into Europe: China’s State-Controlled Carmaker Establishes German Subsidiary to Bolster Expansion

Changan Automobile, under the control of the Chinese government, has set up a subsidiary in Germany. The company has announced that this is its first European subsidiary, and it will be conducting marketing and technical studies to aid its continued growth in the region.

Changan, the fourth biggest government-owned auto manufacturer in China, announced on Tuesday that its German branch, Changan Automobile Deutschland, will carry out marketing and engineering studies to support the company's ongoing growth in Europe.

The creation of the German branch symbolizes Changan's resolve to establish a strong foothold in Europe, according to a statement from the automobile manufacturer. It is also a further move towards implementing our Vast Ocean strategy.

"Vast Ocean" symbolizes Changan's aspirations to globalize its operations. The company intends to manufacture and market more automobiles beyond mainland China, where fierce rivalry has reduced profit margins for both electric and conventional fuel vehicles.

The firm, located in Chongqing municipality in Southwest China, announced in April 2023 that it plans to invest $10 billion internationally by 2030. The objective is to achieve annual sales of 1.2 million vehicles outside of China.