Changan Auto plans 6-billion-yuan share issue to accelerate NEV, global R&D push

Shanghai (Gasgoo)- On December 30, Chongqing Changan Automobile Co., Ltd. ("Changan Automobile") announced plans to issue new shares to its indirect controlling shareholder, China Changan Automobile Group, in a deal expected to raise up to 6 billion yuan. After deducting issuance-related costs, the proceeds will be primarily allocated to the development of new energy vehicle (NEV) models and digital-intelligence platforms, as well as the construction of a global R&D center and broader capability upgrades.

The shares are priced at 9.52 apiece yuan, with a preliminary issuance plan of roughly 630 million shares, representing no more than 30% of the company's current total share capital. The final issuance size remains subject to registration approval by the China Securities Regulatory Commission.

Most of the capital raised is earmarked for deepening Changan's footprint in the NEV space. Around 4.5 billion yuan is slated for a program focused on NEV model development and digital-intelligence platforms. This initiative will cover a range of vehicle types, including sedans and SUVs, while advancing the company's Tianshu intelligent driving system and smart cockpit platforms. The goal is to broaden Changan's NEV portfolio and raise the overall level of vehicle intelligence.

An additional 1.5 billion yuan will be directed to the construction of a global R&D center and related capability enhancements. Plans include a second-phase expansion of Changan's global R&D hub in Chongqing's Jiangbei district, designed to strengthen forward-looking technology research and vehicle design capabilities. Part of the investment will also go toward building an intelligent testing and validation base to support future "new-generation vehicle" development.

The fundraising plan follows a recent capital move within the group. On December 25, Changan's NEV brand DEEPAL completed its Series C financing round, backed by Changan Automobile, Chongqing Yufu Holding Group and CMB Financial Asset Investment. The round raised a total of 6.122 billion yuan, lifting DEEPAL's registered capital from about 328 million yuan to roughly 466 million yuan, underscoring the group's broader push to scale up its new energy and technology-driven businesses.