Changan’s Deepal Automobile Technology has finalized the acquisition of a former Beijing Hyundai Motor plant in Chongqing, China, for 1.62 billion yuan (approximately $228 million). The deal marks a significant shift in China’s automotive landscape, where domestic electric vehicle (EV) brands are increasingly absorbing assets from struggling joint ventures.
Factory Background and Sales Process
The 1.87 million square meter Chongqing plant, originally built with an investment of $1.09 billion, sat idle since December 2021. Beijing Hyundai attempted to sell the facility through multiple public listings starting in August 2023. Initial asking prices of $517 million were slashed repeatedly due to a lack of buyers; the final sale price represents a substantial discount. The ultimate transaction was facilitated through Chongqing Liangjiang New Area Yufu Industrial Park Construction Investment Co., Ltd., a state-backed entity.
Deepal’s Expansion and Production Plans
Deepal already operates production facilities in Nanjing and Beijing. The addition of the Chongqing plant is designed to expand its overall manufacturing capacity. Though the company has not yet specified which models will be produced at the site, it confirmed the facility completed rebranding in late October.
Market Context and Growth
Deepal has experienced rapid sales growth in 2024, with October deliveries reaching 36,792 vehicles—a 57.1% increase year-over-year. The Deepal S05 crossover alone exceeded 20,000 global sales in October. This acquisition aligns with Changan Automobile’s broader strategy to achieve a five million unit annual production target across all its brands.
The transfer highlights a trend in China’s automotive sector where domestic EV manufacturers are capitalizing on the restructuring of foreign joint ventures. The acquisition allows Deepal to quickly increase production without the expense of building from scratch.
The acquisition underscores the growing dominance of Chinese EV brands and the evolving dynamics of the country’s automotive industry. As international automakers struggle to compete in the rapidly expanding EV market, domestic companies like Deepal are poised to consolidate their position through strategic asset acquisitions.
