Changan Automobile Shifts Strategy to Prioritize Profitability Over Volume

[Company Update] Changan Automobile reported declines in both sales volume and profit for the first half of the year, prompting a deep strategic adjustment.

Core Strategic Shift: Proactively Scaling Back Inefficient Operations to Focus on Profitability

Changan Automobile sold 1,118,900 vehicles in the first half of 2026, a year-over-year decline of 17.44%. Its attributable net profit is estimated at RMB 740 million to RMB 970 million, down 57.66% to 67.70% year-over-year. Adjusted net profit (excluding non-recurring gains and losses) was only RMB 230 million to RMB 330 million, representing a sharp year-over-year drop of 77.65% to 84.42%.

Strategic Foundation: Abandoning "Volume at the Expense of Price," Focusing on Organic Capabilities

Amid intense industry pressure, Changan has clearly stated it will no longer pursue scale without profitability. Instead, it is advancing brand consolidation, overseas expansion, and investment in core technologies. On July 23, its RMB 5.267 billion private placement plan was approved by the Shenzhen Stock Exchange, with proceeds earmarked for new energy vehicle models, digital-intelligent platforms, and the construction of a global R&D center.

Key Metrics: Per-Vehicle Profit Under Pressure, Annual Target Less Than One-Third Achieved

Based on sales volume, Changan’s per-vehicle net profit in the first half was merely RMB 66 to RMB 86, indicating weak core business profitability. Against its full-year target of 3.3 million vehicles, it achieved only 33.91% in the first half.