Dongfeng Motor, Changan Automobile both announce plans for state-owned enterprises restructuring

Beijing (Gasgoo)- On the evening of February 9, two major Chinese state-owned automakers, Dongfeng Motor Corporation and Changan Automobile, announced that their parent companies are planning restructuring initiatives with other state-owned enterprises (SOEs).  

Dongfeng Motor Co., Ltd. disclosed that its indirect controlling shareholder, Dongfeng Motor Corporation, is in discussions for a restructuring with another SOE that may change its indirect controlling shareholder but not its actual controller. The plan is subject to regulatory approvals and is not expected to significantly impact the company's operations.  

Similarly, Chongqing Changan Automobile Co., Ltd. also stated that its indirect controlling shareholder, China South Industries Group Corporation, is also exploring restructuring with other SOEs.  

These moves align with recent reform incentives in China's state-owned automotive sector.

In March 2024, Zhang Yuzhuo, Director of the State-owned Assets Supervision and Administration Commission of the State Council of China (SASAC), acknowledged that state-owned automakers lag behind competitors like Tesla and BYD in the new energy vehicle (NEV) sector. SASAC has since introduced separate performance evaluations for three central automotive SOEs, focusing on technology, market share, and future development.  

At the China EV100 Forum in March 2024, SASAC Vice Director Gou Ping emphasized encouraging SOEs to pursue high-quality mergers, acquisitions, and specialized integration to enhance core resources and technological capabilities.  

The restructuring efforts aim to optimize industrial layouts, improve operational efficiency, and strengthen resource allocation, ultimately boosting the competitiveness of state-owned automakers in the rapidly evolving automotive industry.