Are Changan and Dongfeng merging to become China's largest car manufacturer?

Electromobility Are Changan and Dongfeng merging to become China's largest car manufacturer?

2025-02-17 From Stefanie Eckardt | Translated by AI 1 min Reading Time

The market for electric vehicles is also fiercely contested in China. While automotive experts predicted the demise of automakers in China last year, two Chinese corporations could now join forces. Changan and Dongfeng have simultaneously announced their respective reorganizations—thereby stoking the rumor mill considerably.

In China, the automotive manufacturers' cards could be reshuffled. If a merger between Dongfeng and Changan occurs, it would create the largest automaker in the Middle Kingdom.(Image: free licensed on Pixabay) — In China, the automotive manufacturers' cards could be reshuffled. If a merger between Dongfeng and Changan occurs, it would create the largest automaker in the Middle Kingdom.
(Image: free licensed on Pixabay)

Electromobility has not yet gained traction to the extent hoped for. Car manufacturers are also struggling in China, partly due to an enormous oversupply and partly because of U.S. and European tariffs. More than 40 million vehicles could be produced in the Middle Kingdom. However, far fewer are sold. Last year, about 25 million cars were sold in China.

Experts predicted the demise of automakers in China at the end of last year—especially smaller companies are not expected to survive. However, two large automakers might also merge. Dongfeng and Changan are hinting at a merger that could create the largest Chinese manufacturer—and the sixth largest in the world.

Sixth largest car manufacturer

The figures announced by Dongfeng show that the manufacturer sold around 2.5 million vehicles in 2024. Changan was able to sell nearly 2.7 million vehicles. Even though a significant portion of these sales is attributed to joint ventures. The resulting company from the merger would thus have about 5.2 million vehicles sold, ranking it sixth in terms of vehicle sales according to Statista, behind Toyota (10.82 million vehicles sold), Volkswagen (9.03 million vehicles sold), Hyundai Motor Group (7.23 million vehicles sold), General Motors (6.0 million vehicles sold), and Stellantis (5.5 million vehicles sold). This would also put it ahead of the domestic competitor BYD, which sold 4.27 million vehicles in 2024. (se)

According to reports, the negotiations announced in December 2024 for a merger of Honda and Nissan under a holding company have been halted. (Image:Honda)

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