With Changan Automobile’s focus on the Middle East, the region has assumed a strategic significance in the Chinese automobile manufacturer’s global growth strategy. The company established Changan’s largest flagship store in Riyadh and is building user centers and parts distribution centers for the Middle East region — all aimed at significantly enhancing the user experience.
Wang Jun, president of Changan Automobile and CEO of Changan Technology, said: “We consistently uphold the mission of ‘leading automotive culture and benefiting human life,’ and are actively transforming into a smart, low-carbon mobility technology company. Our strategy clearly emphasizes delivering products, technology, and services to users worldwide. Moreover, there is user demand. In recent years, we have observed that consumers in Saudi Arabia and the Middle East increasingly prefer high-tech and sustainable vehicles and have higher expectations for an enhanced mobility experience, hence aligning deeply with our product and brand philosophy.
“Through the rapid development of smart, new energy, and intelligently connected vehicles in China, Changan has achieved a high level of global leadership, giving Chinese brands a competitive edge in this area. Changan Automobile has also made significant progress in the development of smart new energy, resulting in new, competitive products and services. We aim to offer these products and services to users worldwide, including those in the Middle East, providing them with more choices for better products and higher-quality services.”
Changan is customizing its products and services to meet the unique needs and preferences of customers in the Middle East.
Jun said: “Under the guidance of the ‘Vast Ocean Plan,’ we aim to move beyond China and integrate into local markets. We have established the Middle East and Africa Division in collaboration with investors and dealer partners, to accurately understand the local user needs, to develop versatile products and provide a customized service.
“An adaptive approach to development is essential, alongside the understanding and modification in order to fit the unique needs of Middle Eastern customers. By conducting adaptive development of vehicles based in regional geography and climate, as well as local conditions and driving habits, the products and services are designed to suit the market.
For example, Saudi Arabia is a very hot country, and we need the products to endure this extreme heat. With this in mind, since 2014 Changan has conducted extreme heat tests (Summer Test) for 10 consecutive years, involving more than 50 models, over 80 Changan engineers, and approximately 1 million kilometers of verification to enhance vehicle performance, durability, and safety. Due to these extreme heat conditions, Changan has focused on continuously optimizing its air conditioning system, making it one of the coolest in the market. In the future, we will further advance the localization of R&D capabilities.”
The president said that customized services are also very important. “Though market research we found that most Saudi users park their cars outdoors, which makes the vehicles very hot when users enter. Through our collaboration with Huawei Cloud, we are launching smart and connected car solutions in the Middle East this year, enabling remote vehicle control, allowing users to turn on the air conditioning in advance, so the car is cool when users enter. The Qibla compass is also a specialized feature we designed for Muslim drivers, helping them easily determine the direction of Makkah in order to pray, fully reflecting and respecting local cultural practices. At the same time, we are preparing to establish regional subsidiaries and exploring a ‘dual-engine’ strategy for integrated operations and regional dealer partnerships. We are also setting up a regional[21] parts distribution center in the UAE and developing a professional maintenance team to continuously improve the user experience.”
Highlighting Changan’s initiatives toward reducing its carbon footprint and promoting green technology in its vehicles, Jun said the company’s strategy is actively responding to the Saudi government’s Vision 2030 and is firmly committed to pursuing a path of high-quality development with an emphasis on ecological priorities, green, and low-carbon growth. “We will continue to strengthen ESG initiatives, promoting economic and social development in the regions where we operate, while actively fulfilling our responsibilities and obligations as a global company — specifically in areas such as resource conservation, environmental protection, and public welfare,” he added.
On the product side, Changan Automobile adheres to a multi-technology development approach. Jun said: “We have substantial technological reserves in various powertrain types, including pure electric, plug-in hybrid, range-extended, and hydrogen fuel, offering consumers a diverse range of mobility options for all scenarios.
“On the manufacturing side, the green and low-carbon concept has been integrated into all aspects and stages of Changan Automobile’s operations. Several advanced low-carbon and energy-saving technologies have been promoted and applied. Our Chongqing, Hefei, and Hebei plants have built photovoltaic power stations with a combined capacity of approximately 79 MW, generating green clean energy for self-use. Over a year, these stations have consumed 57.6 million kWh of green electricity, reducing 50,000 tons of carbon emissions.
“Changan is also strengthening its full-cycle carbon footprint management, concentrating on tasks such as a recycling system construction and comprehensive resource utilization. Through Changan, we are also exploring the establishment of advanced, easily replicable EPR models for automotive products.
“Furthermore, we promote the application of low-carbon materials and technologies, and have completed research on 15 types of low-carbon and lightweight technologies, including recycled aluminum, bio-based nylon, and variable-strength hot stamping. It is also worth mentioning that we have developed and implemented low-carbon process technologies such as circular recycling of painting, cleaning solvents, reclaimed water reuse, and sludge drying, aiming to improve resource utilization rates and achieve waste resource recovery, recycling, and emission reduction.”
Commenting on Changan’s key achievements over the past 30 years, Jun said: “We have gained global recognition and trust from our users, driven by our commitment to providing customers worldwide with new and competitive products and services. As a result, we have gained global recognition and have become the choice of over 40 million users. Furthermore, we have deconstructed the automotive industry into ‘research, production, supply, sales, and transportation’ centered around the product, and ‘buying, selling, using, repairing, and servicing’ centered around the user.”
He also mentioned the company’s partnerships with over 1,100 global suppliers and more than 9,300 global dealers, established over the years, contributing to the sustainable, high-quality development of the automotive industry.
“Our strategic goals further align with the principles of the automotive industry and are steadily advancing their implementation. Changan has always upheld the mission to ‘lead auto culture and benefit human life,’ and we are firmly committed to transforming into a smart, low-carbon mobility technology company, advancing toward becoming a world-class automotive brand. We have divided our strategic vision into specific goals for 2025 and 2030 respectively and have broken down the objectives into actionable tasks through detailed policy implementation, ensuring these goals are iterative, actionable, and achievable.”
Jun said Changan remains committed to long-termism, localization, and a focus on ESG in its globalization strategy.
He said Changan has remained at the forefront of automotive technology, including electric vehicles, smart driving, and sustainability. “We have defined a strategic plan for intelligence and this includes ‘The Dubhe Plan,’ and ‘New Cars, New Ecosystems.’ By focusing on new intelligent automative solutions we are rapidly building Changan Automobile’s core competencies in smart technology. Digital-intelligent products, technology, manufacturing, and management is also essential.
“To strengthen the organization we have also established 16 technology and product R&D centers, all focused on areas such as electronic and electrical architecture platforms, intelligent driving, and smart cockpits. This has allowed us to build core capabilities in chips, devices, maps, cores, clouds, networks, and satellites. Additionally, we have recruited over 50 experts in software, algorithms, and AI, to assemble a team of more than 2,000 individuals dedicated to creating new vehicles.”
He said the automaker is committed to ensuring that its annual R&D investment accounts for no less than 5 percent of the revenue. “Looking ahead, we plan to invest over 200 billion yuan ($28.1 billion) in intelligence and will continue to explore and promote the establishment and operation of local R&D centers, with adaptive development for local markets.
“It is also worth mentioning that we have a comprehensive product and technology system in place to ensure strong capabilities and support. We have established the CA-PDS development system, CA-TVS testing and verification system, and CA-DDS design management system, along with a robust ‘Iron Triangle’ supplier relationship, all centered around the entire industry chain. At the same time, we continuously iterate and innovate, driving transformative changes in the four major processes: R&D, manufacturing, supply, and marketing,” Jun added.
Commenting on Changan’s vision for the next decade, especially in light of the rapidly evolving automotive industry, Jun said: “Looking to the future, Changan Automobile will proactively recognize, adapt and drive change, employing strategic thinking to plan comprehensively and embrace transformation to meet any challenges. We have continually reviewed and optimized our Innovation and Entrepreneurship Plan since its 2017 launch, and we are now at version 8.0. With our focus on three major initiatives — ‘Shangri-La,’ ‘The Dubhe Plan,’ and ‘Vast Ocean Plan,’ we are fully reinforcing our development foundation.
“Further expanding our global presence, particularly in emerging markets such as the Middle East, is also key. We will continue to adhere to the development principles of localization, long-term commitment, and sustainability, to strengthen local partnerships and launch more than 10 global products in the future.”
Jun believes that acknowledging competition and continuously improving their products is the only way to navigate the challenges of the global market, particularly in emerging economies like those in the Middle East.
“Only competition can drive innovation and development. Strategic guidance is essential, and we remain committed to realizing our grand vision of building a world-class automotive brand, and using this strategic vision to guide our development,” Jun said.
He said that product excellence is also king, and the company continuously develops new technologies and solutions to maintain its industrial dominance, by consistently providing products and services that satisfy consumers.
“Full cooperation will also establish long-term sustainable systems, business partnerships, and strong communication with governments and the public ... Creating an environment of mutual respect and equality among different cultures will enable us to develop in a sustainable way in the long term,” Jun added.
