The state-owned carmakers Dongfeng Motor Group and Chongqing Changan Automobile will presumably be transferred to a joint holding company. According to the South China Morning Post, stock exchange announcements published by both groups on Sunday point to a merger. In terms of sales figures, the merged company would then be the largest car manufacturer in China and would also overtake EV manufacturer BYD. Dongfeng is a Chinese partner of Nissan Motor and Honda as well as the French car manufacturer Peugeot Citroën. Changan Automobile has partnerships with Ford and Mazda.
The Chinese government presumably aims to consolidate the Chinese automotive industry, as the market currently suffers from an excess of competitors and overcapacity. In merged groups, on the other hand, resources can be directed towards more competitive products and technologies. The merger would probably take some time due to its complexity and the impact on local jobs. The merger of the two companies has not yet been officially confirmed.
China produces around 40 million cars a year and sells 23 million vehicles. This makes China the largest car market in the world, even for electric vehicles. Competition for the lowest prices in the EV segment is particularly fierce. Only BYD, Li Auto and Huawei-backed Aito are currently profitable. BYD announced on Monday that it plans to equip affordable smaller models in China with an automated driving system. According to BYD, the „God’s Eye“ assistance system will be installed in three models priced below 100,000 yuan (13,280 euros), including the small car Seagull, which costs the equivalent of 9,300 euros in China. BYD thus increases the pressure on competitors such as Tesla. ek