Changan Automobile announced on August 26 that its production and sales target in August is expected to be reduced by about 100,000 vehicles due to the power brownouts in its Sichuan base caused by high temperatures in the province.
However, Changan said that the reduction will have limited impact on its annual target. The company will maintain communication with relevant departments on power supply guarantees and optimize its production plan in September.
Changan’s first quarter report of 2022 shows that the company’s main income was 34.576 billion yuan ($5.04 billion), up 7.96% year-on-year, while the net profit attributed to parent company was 4.536 billion yuan, up 431.45% year-on-year. On July 14, the company released its semi-annual performance forecast for 2022. It is estimated that the net profit attributable to shareholders in the first half of this year will be 5 billion yuan to 6.2 billion yuan, up 189.14% to 258.54% year-on-year.
In the first half of 2022, Changan sold 1,125,800 vehicles, down 6.25% year-on-year. However, with the vigorous development of China’s new energy vehicle market, Changan has been reorganizing its layout in the first half of this year.
The company previously released its new pure electric brand Deep Blue, and launched a new pure electric production platform, the EPA1. In the future, the new brand will focus on the Z generation and aim at the middle and high-end pure electric vehicle market with a price range of 150,000 yuan to 300,000 yuan. In the small-sized car market, the new offshoot will launch four vehicle models.
In the field of high-end new energy vehicle markets, Avatr, jointly manufactured by Changan, Huawei and CATL, unveiled its first intelligent electric SUV, the Avatr 11, and its limited edition counterpart, the Avatr 011, which will be delivered within this year.
According to the plan, over the next five to ten years, Changan will attempt to double its sales volume and efficiency. Its sales target by 2025 is 1.05 million units of new energy vehicles, accounting for 35% of total sales while for the year 2030 the company is targeting 2.7 million units, accounting for 60%.