Changan Auto has established the AD Collaborative Development Department to merge the mid-to-back-office operations of its NEV brands, Avatr and Deepal. This new first-tier department will oversee shared resources in R&D, supply chain, manufacturing, and administrative functions to improve operational efficiency.
The company expects this integration to reduce costs by 20% to 30%. While back-end processes are being consolidated, front-end operations such as brand image and sales will continue to function independently. Avatr will lead shared centers for design and platform technology, while Deepal focuses on internal streamlining.
The restructuring occurs as Avatr pursues a Hong Kong IPO, having resubmitted its prospectus in June 2026. The company now faces potential regulatory review regarding its business independence. Changan Auto maintains that the strategic positioning of both brands remains unchanged.
Through this consolidation, Changan Auto targets a combined annual sales volume exceeding 1.5 million units by 2030. The group currently manages three NEV brands: Nevo, Deepal, and Avatr, and this move reflects a broader trend of resource integration within the Chinese automotive industry.
