Changan Automobile to raise fresh capital for DEEPAL while retaining control

Shanghai (Gasgoo)- On December 13, Chongqing Changan Automobile Co., Ltd. (“Changan Automobile”) announced plans for a new capital increase at its majority-owned subsidiary, Deepal Automotive Technology Co., Ltd. (DEEPAL), with total proceeds expected to reach approximately 6.12 billion yuan.

The fundraising will be carried out through a combination of a public listing on the Chongqing United Assets and Equity Exchange and privately negotiated capital injections. The final transaction price will be determined through the public listing process and will not fall below the valuation filed with state asset regulators. Existing shareholders and qualified external investors will both be eligible to participate.

Under the plan, Changan Automobile intends to subscribe to the capital increase via a private agreement, contributing a mix of intangible assets and cash with a total value of up to 3.12 billion yuan. The intangible assets have been appraised at 1.04 billion yuan, while the remaining portion will be funded entirely with Changan's own cash resources. The automaker said it will flexibly adjust its final contribution based on the participation level of other qualified investors and the ultimate pricing outcome, in order to maintain its post-transaction equity stake in DEEPAL at 50.9959%. Following the deal, DEEPAL will remain a controlled subsidiary of Changan Automobile.

DEEPAL has already initiated this financing round by listing on the Chongqing United Assets and Equity Exchange, with the transaction targeted for completion by the end of December. New investors are expected to hold no more than 20% of the company following the capital increase. According to the disclosure, the proceeds will be directed primarily toward the development of new vehicle models, upgrades in intelligent and electrification technologies, and global brand building, reinforcing DEEPAL's long-term investment in core technologies and overseas market expansion.

The capital plan comes as DEEPAL reported cumulative vehicle deliveries of 700,000 units, underscoring the rapid scale-up of the brand since its launch. Changan Automobile, meanwhile, marked a separate milestone with the rollout of its 30 millionth vehicle, highlighting the group's broader production strength and steady operational momentum as it accelerates its transition toward electrification.