Changan Auto: Charging Ahead in the EV Revolution – A Must-Own Stock?

Let me tell you, folks, if you're in the market for a stock that's all-in on the electric vehicle (EV) revolution and global dominance, Changan Automobile is worth your attention. This Chinese automaker isn't just playing catch-up—it's sprinting ahead with $200 billion in planned R&D spending over the next decade, strategic tech partnerships, and an aggressive push into overseas markets. Here's why this could be a once-in-a-decade opportunity.

Accelerating R&D: Betting Big on the Future

Changan isn't messing around when it comes to R&D. Since 2011, it's already invested over $19 billion in R&D (138.3 billion yuan), with a staggering $59 billion (40 billion yuan) dedicated to new energy vehicles (NEVs) alone over the past decade. But here's the kicker: they're doubling down. By 2035, Changan aims to plow $200 billion into future tech—including intelligent car robots, flying cars, and advanced EV platforms.

This isn't just about electric powertrains. Changan is partnering with tech giants like Huawei (a 40% stake in their joint venture for smart systems) and CATL (via their premium EV brand Avatr) to build end-to-end ecosystems. The results? Breakthroughs like the SDA digital platform (which lets cars adapt to driver behavior) and the Intelligent TH Chassis, showcased in their 2025 flagship E07. These aren't just buzzwords—they're patented innovations that could carve out a moat against competitors.

NEV Sales Momentum: Crushing Targets and ESG Credentials

Changan isn't just talking the talk. In 2024, it sold 735,000 NEVs, cutting carbon emissions by 5.5 million tons—the equivalent of planting 10,000 hectares of forest. And get this: Changan plans to end ICE vehicle production entirely by 2025, a full decade ahead of China's regulatory deadline. This isn't just about compliance—it's about positioning itself as a climate leader, which is a massive ESG selling point for investors.

The product pipeline is firing on all cylinders. Models like the Avatr 06 (with advanced autonomous driving) and the Deepal S09 (targeting younger buyers) are hitting the right notes. And with 10,000 new R&D hires and a $635 million global R&D hub in Chongqing (complete with 180 labs), Changan is building a war chest to dominate the next wave of EV tech.

Global Expansion: The “Vast Ocean Plan” Is No Joke

Changan isn't content to be a regional player. Its “Six Countries, Ten Locations” R&D network spans from Detroit to Munich, and it's already a top-three Chinese auto exporter, selling 500,000+ vehicles overseas in 2024. By 2025, it's targeting 10 regional business entities in key markets like Europe, Brazil, and Indonesia.

The Vast Ocean Plan is a blueprint for global domination: $10 billion in overseas investment by 2030, 1.2 million annual exports, and a push to become a “first-class global brand”. With partnerships like its CATL-backed Avatr brand (which leverages Huawei's tech), Changan is combining Chinese scale with cutting-edge global tech—a formula that could outpace even Tesla in emerging markets.

The Bottom Line: Buy Now or Miss the Boat

The risks? Sure—supply chain hiccups, competition from Tesla and BYD, and geopolitical headwinds. But Changan's aggressive R&D, ESG leadership, and global footprint make it a low-cost, high-growth play in the EV sector. At current valuations, it's a steal compared to overhyped peers.

Action Plan:
- Buy Changan stock (SH:601318) now if you can—its valuation is still undervalued relative to its growth trajectory.
- Watch for catalysts: The 2025 flight tests for flying cars, Avatr's luxury EV launches, and sales data from Europe/Australia.
- Hedge with: Short positions in legacy automakers lagging in EV tech.

This isn't a gamble—it's a strategic bet on the future of mobility. Changan is charging ahead, and investors who hop in now could be rewarded handsomely. Don't let this one pass you by.