Changan to fuse Avatr and Deepal operations as Avatr Q1 sales plunge 41.6%
Changan Automobile Chairman Zhu Huarong announced on April 21 that the group will strategically integrate its two primary New Energy Vehicle (NEV) brands, Avatr and Deepal, IT-Home reports.
Speaking at a post-conference briefing following the group’s “1445” Global Strategy launch, Zhu confirmed the integration aims to streamline mid-to-back-end operations, including R&D, supply chains, and manufacturing by the end of 2026.
Shared resources, distinct identities
Under the new “independent front-end, collaborative mid-to-back-end” model, Avatr and Deepal will maintain separate brand identities, product lineups, and sales channels.
However, sharing backend infrastructure is expected to reduce resource costs by 20% to 30%. Zhu emphasised a “three no-changes” commitment: the group’s overarching strategy, individual brand positioning, and existing user rights will remain unaffected by the reorganisation.
Scaling up to 1.5 million units
The integration supports Changan’s goal of creating a mid- to high-end power block. By 2030, the group targets combined annual sales of 1.5 million units from the two brands.
Deepal is positioned to capture the 150,000–300,000 yuan (20,730–41,460 USD) segment, targeting 1 million units. Avatr will focus on the premium 250,000–700,000 yuan (34,550–96,740 USD) market, aiming to deliver 500,000 annually.
Industry push and product momentum
The move comes as Changan accelerates its global product offensive. Deepal recently expanded its footprint by launching the S05 SUV in the UK, featuring a WLTP range of 303 miles and 3C charging capabilities. Simultaneously, Avatr has pushed further into the high-performance luxury segment, recently opening pre-sales for the 955-hp Avatr 06T wagon, priced from 230,100 yuan (31,800 USD).
Data context: Mixed Q1 performance
In the first quarter of 2026, the two brands saw diverging domestic trajectories. According to data from the China EV DataTracker, Deepal recorded 53,601 deliveries, representing a 5.2% year-on-year (YoY) increase. In contrast, Avatr struggled in Q1 2026, with 11,703 units sold, a 41.6% YoY decline from the 20,041 units delivered in Q1 2025. This consolidated backend approach appears designed to stabilise Avatr’s high-end aspirations while fueling Deepal’s volume growth.
1445 Global Strategy backdrop
The integration is a cornerstone of Changan’s “1445” strategy, which seeks to reach 5 million total annual sales by 2030. Within this framework, NEVs are expected to account for over 60% of volume, with international markets contributing more than 40% of total sales. This follows a strong 2025 performance, during which Changan delivered 2.91 million vehicles, including 1.11 million NEVs, a 51.1% increase in the electric segment.
