(Reported by Xia Wu, a reporter from our website on February 11th): China's automobile industry has ushered in a milestone transformation - the strategic restructuring of Dongfeng Motor Group and Changan Automobile Co., Ltd. was officially finalized on February 9th. The newly merged automobile group (name to be announced) has achieved an annual sales volume of over 5.2 million vehicles, making it the fifth largest automobile manufacturer in the world. This restructuring not only reshapes the domestic automotive industry pattern, but also brings dual opportunities for technological upgrading and overseas expansion to Dongfeng Group's strategic partner Junfeng Automobile Company, accelerating the implementation of its globalization strategy.

Restructuring outlook: the birth of the world's fifth largest car company

   According to the announcement, the restructuring and integration of Dongfeng and Changan covers multidimensional resources such as research and development, supply chain, and market channels. According to 2024 data, the combined sales of both parties reached 5.16 million vehicles, making it the largest domestic car company and ranking among the top five in the world, second only to Toyota, Volkswagen, Stellantis, and General Motors. The new group will focus on the fields of new energy and intelligence, integrating brands such as Dongfeng Voyah, Mhero, Changan Shenlan, Aveta, etc., to form a diversified matrix covering high, medium, and low-end markets, while eliminating outdated production capacity and optimizing the structure of fuel vehicles and new energy vehicle models.

By utilizing the impact and brand effect of the restructuring, the popularity of the "Junfeng" brand has been enhanced.

Junfeng Automobile benefits from technology sharing and cost optimization throughout the entire chain

    As a long-term strategic partner of Dongfeng Group, Junfeng Automobile has received core resource support in this restructuring. The new group will open up its intelligent driving platform (such as Changan Tianshu Intelligent Driving System) and three electric technology patent pool to help Junfeng accelerate the mass production and market launch of more new energy vehicle models, and the manufacturing cost is expected to be reduced by 18%. In addition, the integrated global supply chain system of Dongfeng Changan can reduce the procurement cost of Junfeng components by 20% and improve the efficiency of intelligent technology iteration by 30%.

Overseas market expansion accelerates, sharing a 10000 level sales network

   After the reorganization, Junfeng Automobile effectively used 12000 overseas sales outlets in Dongfeng Chang'an, and used Chang'an's layout in the "the Belt and Road" countries and Dongfeng's power exchange network in Europe to quickly open the markets in Southeast Asia, the Middle East and South America. It is reported that Junfeng's first global intelligent electric SUV will be launched in multiple global locations in the second half of 2025, with a 66% increase compared to the original plan. Junfeng's relevant leaders stated that "with the help of the new group's channels and brand collaboration, our overseas market awareness is expected to increase to 8% within three years.

After the restructuring, Junfeng Company's coordinated marketing products will expand to include brands such as Chang'an Shenlan and Aveta, providing more choices for Junfeng's overseas users.

Policy driven and industry reshuffle, central enterprise integration and release of demonstration effects

   This restructuring responds to the "14th Five Year Plan" requirements of the State owned Assets Supervision and Administration Commission to promote strategic restructuring of the automotive industry, aiming to break through the bottleneck of new energy technologies through resource concentration and reverse the lagging situation of state-owned car enterprises in the electrification transformation. Zhang Yuzhuo, Director of the State owned Assets Supervision and Administration Commission of the State Council, once pointed out that the three major state-owned automobile enterprises need to enhance their competitiveness through assessment reform and integration. This restructuring may become an important symbol for the national team to improve their comprehensive capabilities.

    Industry experts analyze that the restructuring of Dongfeng Changan not only injects vitality into partners such as Junfeng, but may also trigger a chain reaction in the industry. The Goldman Sachs report predicts that the overseas market share of Chinese car companies may jump from 4% to 10% within three years, and Junfeng, with its cost-effectiveness advantage, is expected to surpass some competing brands in more overseas markets. Yan Jinghui, an expert from the China Automobile Dealers Association, pointed out that "this integration marks a new stage for China's automobile industry to shift from scale expansion to technology defined standards, and its success will provide a model for cultivating world-class car companies.

Challenges and Prospects

   Despite its broad prospects, integration still faces challenges such as management synergy and cultural integration. Both parties need to coordinate the resource allocation between Dongfeng joint venture brand and Changan independent brand (accounting for over 80%), and balance the interests of Wuhan and Chongqing. If the synergistic effect is released as scheduled, Dongfeng Changan Group may compete for the position of the world's fourth largest car manufacturer in 2026, and Junfeng Automobile is expected to gain great benefits from this integration case. At the same time, this will also increase the popularity and reputation of the "Junfeng" brand.