Changan Auto Integrates Deepal and Avatr Brands, Establishes First-Level Department for Synergy

September 27 – According to Yicai reports, Changan Automobile has begun substantive implementation of the integration between its two brands, Deepal and Avita. The company has announced the establishment of the AD Collaborative Development Department (named after the initials of Avita and Deepal), which is designated as a first-level department.

Under this first-level department, Changan has set up multiple second-level units, including:

• Planning and Cooperation Department
• Market and Product Department
• Shared Human Resources Center
• Shared Finance Center
• General Affairs Department

These units will undertake corresponding business tasks delegated by Deepal and Avita.

Changan has also recommended that Avita establish several shared or collaborative centers for design, product development, and platform technology to handle related business from Deepal. Meanwhile, Deepal is expected to dissolve several business units and their subordinate organizations.

Yicai reached out to Avita for comment on the establishment of the AD Collaborative Development Department but had not received a response as of the time of reporting.

Background and Strategic Goals

Earlier reports indicated that in April of this year, Changan unveiled an integration plan to promote comprehensive strategic collaboration between its new luxury brand Avita and its mid-to-high-end new energy brand Deepal. The goal is to build a mid-to-high-end brand cluster with annual global sales exceeding 1.5 million units, with overseas sales accounting for more than 40%.

At a media briefing, Changan Automobile Chairman Zhu Huarong emphasized "two constants" and "two shares":

• Two constants: Strategy remains unchanged; brand operations remain unchanged.
• Two shares: Shared system capabilities; shared resources in technology and supply chains.

According to Zhu, this adjustment is not a simple merger but rather a model of "front-end independence, back-end collaboration." Through resource integration and synergy, the scale effect is expected to reduce costs by 20% to 30%.

Sales Targets and Timeline

Under the plan, by 2030, the two brands are expected to reach a combined scale of 1.5 million vehicles:

• Avita: 500,000 units
• Deepal: 1 million units

The integration is expected to be completed by the end of this year.

Impact on Avita's IPO

Notably, the integration comes at a time when Avita is preparing for its IPO. The restructuring may affect the progress of Avita's listing.

On the evening of June 30, the Hong Kong Stock Exchange website disclosed that Avita Technology had updated its prospectus and resubmitted its Hong Kong IPO application. Under HKEX rules, this prospectus will expire at the end of this year. Avita's initial prospectus, submitted in November 2025, had already expired in May of this year after reaching its six-month validity period.

Sales Performance

• Avita: Delivered 122,700 vehicles in 2025, but only approximately 27,600 vehicles in the first half of 2026, marking a significant year-on-year decline.
• Deepal: Sold 325,000 vehicles in 2025, a 44.4% increase year-on-year.

The contrasting performance—one brand needing to boost volume, the other needing to reduce costs—underscores the practical pressures driving the collaborative integration.