Changan Automobile to raise 6 billion yuan for NEV development

Beijing (Gasgoo)- Changan Automobile announced on December 6 its plans to raise up to 6 billion yuan through a private placement of A-shares. The funds will be allocated to projects focused on new energy vehicle (NEV) development, product platform upgrades, and the establishment of a global R&D center to enhance its competitiveness in the NEV market.  

The issuance will target specific stakeholders, including Changan Automobile's controlling shareholder, China South Industries Group Corporation (CSGC), its parent company, China Changan Automobile Group, and CSGC's wholly-owned subsidiary, South Industry Assets Management.  

The funding will be channeled into two key initiatives. The first is NEV model development and product platform technology upgrades. This project aims to introduce a wide range of NEV models, spanning sedans, SUVs, and MPVs, to diversify Changan Automobile's product portfolio, improve its competitiveness, and expand its market share.  

The second initiative is the construction of a global R&D center and the enhancement of core capabilities. This project will address current development bottlenecks by creating a cutting-edge research and testing facility to support intelligent design, testing, and system upgrades. It is expected to strengthen Changan Automobile's innovation and reinforce its position in the global NEV market.