Changan bought the Chinese Hyundai plant to assemble Deepal cars

This move reflects the general trend of foreign automakers leaving China and the strengthening of local EV brands, which are ahead of competitors in technology, prices and adaptation to the market.

In the rapidly changing landscape of the Chinese auto industry, one of its oldest players, Changan Automobile, has made another strategic move. The company has officially confirmed the acquisition of the former Hyundai plant in Jiangsu province, which previously produced models of the South Korean brand for the Chinese market. Now this production site will be reoriented for the production of electric vehicles of the Deepal sub-brand - one of the most dynamically developing areas of Changan in the premium EV segment.

The decision to buy out existing facilities rather than build new ones from scratch looks like an example of a pragmatic industrial policy. The Hyundai plant, despite the decline in sales of the Korean brand in China, retained modern equipment, qualified personnel and a developed logistics infrastructure. For Changan, this is an opportunity to accelerate the scaling of Deepal without significant capital expenditure and technology risks.

Deepal, launched as Changan's technological answer to challenges from NIO, Zeekr and Li Auto, has already made a name for itself with models like the Deepal S07 and Deepal SL03 - electric cars with a range of up to 700 km, folding headlights, advanced multimedia systems and an affordable price. As demand for these vehicles grew in China and beyond, the main Changan site's production capacity began to come under strain. The move to a former Hyundai plant solves this problem and provides a margin of safety for future new products.

The move also symbolizes a broader trend: the exit of traditional foreign automakers from China and the transfer of their assets to local players who are more flexible, faster and more focused on local consumer preferences. Hyundai, like Nissan and Honda before it, is facing a drop in market share amid the rapid growth of Chinese EV brands, whose cars are not only cheaper, but also more technologically advanced.

Thus, purchasing a plant is not just an expansion of production. This is a passing of the baton: from the era of internal combustion engines and global concerns to the era of electricity, software and Chinese innovation autonomy. And Changan, through its ambitious sub-brand Deepal, embraces it with confidence.