Chongqing – In a significant development for the Chinese auto industry, Changan Automobile and Geely Holdings Group, two prominent players in the sector, have formalized a strategic cooperation agreement on May 9.

The collaboration between Changan and Geely encompasses various facets of the automotive landscape, including new energy vehicles, intelligence, new energy power, overseas expansion, and mobility. By joining forces, the two companies aim to accelerate the transformation and advancement of the Chinese auto industry, ensuring its continued competitiveness amidst global industrial changes.

Changan and Geely sign a strategic cooperation agreement. [Photo/Liangjiang New Area]

Intelligence and electrification emerge as focal points in the strategic cooperation between Changan and Geely, signaling their commitment to staying at the forefront of technological innovation. This partnership represents an important opportunity for Chinese automakers to not only maintain competitiveness but also lead in the global arena.

Under the agreement, Changan and Geely are expected to cooperate in several key areas. In the field of new energy, the two companies will pool their expertise on battery cells, charging technology, battery swap technology, new energy vehicle safety, and the layout of the new energy industry. In the field of intelligence, the two sides will start joint projects on chips, operating systems, vehicle system interconnection, high-precision maps, and autonomous driving.

Furthermore, Changan and Geely will work together on power platforms and power technologies, exploring avenues for cooperation in overseas development and mobility ecosystems. They will also venture into the fields of industrial internet, blockchain, and carbon trading, facilitating the sharing of forward-looking technological applications.

"Chinese automobiles are at a critical stage of transformation, poised to shift from following to leaders," stated Fu Bingfeng, Vice President of the China Association of Automobile Manufacturers. "Changan and Geely represent the epitome of excellence among Chinese automakers. This bilateral cooperation will not only build the brand image of Chinese automobiles but also generate industry synergies, ushering in a new era of high-level competition and cooperation between enterprises."

Zhu Huarong, board chairman of Changan Automobile, expressed confidence in the strengths that each party brings to the collaboration. By leveraging their shared resources, the two companies aim to deliver enhanced services and experiences to global users, promote high-quality development within the auto industry, and contribute to China's target of becoming an automotive powerhouse.

Likewise, Li Shufu, board chairman of Geely Holding Group, emphasized the close partnership between Geely and Changan. He highlighted the increased investment and complementary strengths that this cooperation will bring, leading to an improved mobility experience for users and providing further innovative exploration within the industry. 

Chongqing, a vital hub for China's automotive manufacturing, serves as the backdrop for this collaboration, with both Changan and Geely having strong ties to the city. Changan is the mainstream local brand in Chongqing, achieved impressive sales of 607.8 thousand units in the first quarter of 2023, and has set ambitious targets to launch 27 new energy products by 2025. Geely, following its acquisition of Chongqing's local auto brand Lifan, established its global headquarters for the industrial internet, known as Geega, in Chongqing. The city also serves as a manufacturing base for Geely's high-end energy vehicle, Polestar.

Statistics reveal that China's total vehicle sales volume in 2022 reached a staggering 20.54 million units, with Changan and Geely accounting for significant market shares of 1.68 million units and 1.26 million units, respectively. These figures position Changan and Geely at No 3 and No 5 in terms of sales volume. Collectively, the two companies represent a 14.32 percent share of the automotive market in China.