In-Depth Analysis Report on Changan Automobile's Supply Chain Management Capabilities

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Changan Automobile as China’s fourth-largest automotive group (with 2.68 million global sales in 2024), has built a relatively complete system in supply chain management. In 2025, as Changan Automobile was upgraded to a new central state-owned enterprise (SOE), its supply chain management capabilities entered a new stage of development. The company has demonstrated strong capabilities in supplier system construction, ESG management, digital-intelligent transformation, and global layout. Based on comprehensive evaluation, Changan Automobile’s supply chain management capabilities rank at the

in the industry, with outstanding performance particularly in supplier relationship management and supply chain resilience.

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Changan Automobile has established a global supplier network, with

and , forming a large and stable supply chain ecosystem[1]. Its supplier system has the following characteristics:

Supplier Tier	Management Method	Coverage
Tier 1 Suppliers	Periodic quality audits	Over 700
Tier 2 Suppliers	Full-process APQP control	Over 60 (key categories)
Core Suppliers	Due diligence + commitment mechanism	Signed by general manager level

The company’s audit coverage rate for tier 1 suppliers reaches 80%, ensuring the controllability of supply chain quality[2].

Changan Automobile has established in-depth strategic partnerships with top global suppliers:

• Power Battery Sector
  : CATL, Gotion High-Tech, CALB, Ganfeng Lithium
• Intelligentization Sector
  : Huawei (Yinwang Co.), Horizon Robotics, Bosch
• Electronic Display Sector
  : BOE, Suzhou Xidian, Hubei Jingque

Notably, in 2024, Changan Automobile signed a

with , and the two parties will carry out in-depth cooperation in cutting-edge fields such as battery swap services, intelligent automotive robots, flying cars, and embodied intelligence[3]. CATL accounted for of the global power battery installed capacity from January to August 2025, firmly ranking first in the world, and its cooperation with Changan will further strengthen Changan’s battery supply security.

Changan Automobile has implemented multi-level quality control measures in supplier management:

1. APQP (Advanced Product Quality Planning) Management System
   : Incorporate directly managed and key tier 2 suppliers into full-process control during the new product development stage
2. Key Review Mechanism
   : Promote tier 2 suppliers to participate in key reviews to achieve full-chain visibility
3. Periodic Audits
   : Conduct periodic quality audits on tier 1 suppliers
4. Raw Material Traceability Management
   : Issued Power Battery Traceability Management and Responsible Global Mineral Supply Chain Due Diligence Management Process

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In September 2025, Changan Automobile systematically upgraded its supply chain ESG management strategy, focusing on strengthening precise control over tier 2 suppliers[2]:

• Raw Material Traceability
  : Establish a complete traceability system to ensure compliance of key raw materials
• Commitment Mechanism to Prohibit Unauthorized Changes
  : Require general manager-level personnel of core suppliers to sign the Commitment Letter to Prohibit Unauthorized Changes, explicitly prohibiting unauthorized production outsourcing, process changes, material replacement, or supplier replacement
• Sustainable Due Diligence
  : Sign Supplementary Agreement on Sustainable Due Diligence and Code of Conduct with suppliers

In terms of supply chain environmental and social responsibility, Changan Automobile has adopted the following measures:

• Mineral Supply Chain Due Diligence
  : Clearly require suppliers to conduct due diligence on relevant minerals and metals in their supply chains
• Supply Chain Traceability Risk Control
  : Conduct supplier due diligence audits on core components such as batteries and cells, and supervise supply chain environmental and social risks
• Low-Carbon Promotion
  : Continuously promote the low-carbon transformation of the supply chain and build a more responsible sustainable supply chain ecosystem

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In October 2025, Changan Automobile signed a comprehensive strategic cooperation agreement with JD Group to establish a comprehensive strategic partnership[4]. Their cooperation in digital-intelligent supply chain includes:

Cooperation Field	Specific Content
Digital-Intelligent Procurement Management Platform	Establish a unified digital procurement management system
Smart Forward Warehouse	Optimize inventory management and logistics distribution
Overseas Business Layout	Support the construction of a global supply chain system
Cooperation in Robotics Field	Explore new models of intelligent manufacturing

JD Industry’s “Taipu” digital-physical integrated supply chain solution provides Changan Automobile with comprehensive support from procurement digital transformation consulting to one-stop mall procurement planning.

Through the digital-intelligent upgrade of the supply chain, Changan Automobile has achieved:

• Improved Procurement Efficiency
  : Break down information silos and realize standardized commodity management
• Cost Reduction
  : According to research, digital-intelligent transformation can reduce supply chain costs for Chinese industrial enterprises by approximately RMB 6.77 trillion
• Optimized Fulfilment
  : Improve supply chain agility and response speed
• Compliance Management
  : Establish a standardized supply chain compliance system

In October 2025,

(a subsidiary of China Changan Automobile) signed a contract with Benteler to establish a new joint venture, expanding its business to high-tech fields such as chassis modular systems, hot-formed battery boxes, and body structural components[5]. Chenzhi Group is positioned as an intelligent manufacturing and asset management platform company for the entire industry, representing Changan Automobile’s strategic direction of supply chain platform-based development.

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Changan Automobile has over

in 31 countries worldwide, forming a complete European ecosystem covering R&D, production, supply, sales, and operations[1]. The layout of its global supplier network reflects the company’s internationalization strategy:

Region	Layout Focus	Development Status
Southeast Asia	Rayong Plant, Thailand	Annual production capacity of 100,000 units (expandable to 200,000 units)
Europe	Brand Launch Center in Germany	Brands such as Deepal and Avita have entered the market
Middle East	Market Expansion	Sales network has been established
South Africa	Joint Venture Cooperation	Partners include Jelita Motors

In May 2025, Changan Automobile’s Thailand plant was officially put into operation[5]. The plant features:

• Initial Investment
  : Focused on the C857 production project
• Localized Procurement
  : Expected to achieve localized procurement volume of over
  RMB 30 billion
• Radiation Scope
  : Serves the global right-hand drive vehicle market
• Strategic Significance
  : Realize a global supply chain model of “ready for export upon roll-off the production line”

Facing the complex overseas market environment, Changan Automobile has adopted two major strategies:

1. 2-4-3 Global Supply Chain Integrated Solution
   : Provide supply guarantee, cost reduction, and hosting solutions through two one-stop capabilities of global commodity and fulfillment
2. Localized Service Capability
   : Establish a core capability of “localized service” through digital-intelligent capabilities and global layout to achieve efficient overseas expansion

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From a financial data perspective, Changan Automobile’s supply chain management is based on a sound financial foundation[6]:

Financial Indicator	Value	Industry Evaluation
Operating Revenue (2024)	RMB 276.72 billion, up 7.7% year-on-year	Steady growth
Net Profit Margin	4.15%	Upper-mid level in the industry
Current Ratio	1.22	Good short-term solvency
Quick Ratio	1.02	Normal inventory turnover
Debt Risk	Low risk	Sound financial structure

Changan Automobile’s supply chain risk management is reflected in the following aspects:

1. Diversified Supplier Strategy
   : Avoid over-reliance on a single supplier
2. Optimized Inventory Management
   : Optimize inventory through facilities such as smart forward warehouses
3. Periodic Audits
   : Ensure suppliers continuously meet quality standards
4. Optimized Account Payable Period Management
   : Respond to national policies and participate in the industry commitment to shorten the account payable period to 60 days

Changan Automobile has formed strong collaboration capabilities with its suppliers:

• Joint R&D
  : Carry out in-depth technical cooperation with core suppliers such as CATL and Huawei
• Capacity Collaboration
  : Ensure supply security of key components through strategic agreements
• Cost Sharing
  : Establish strategic partnerships with suppliers featuring risk sharing and benefit sharing

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According to public information, Changan Automobile has adopted a number of measures in supply chain cost control[7]:

Cost Reduction Measure	Expected Target	Implementation Result
Supply Chain Optimization	Achieve 5% cost reduction target in 2024	Achieved
Technological Innovation	Reduce production costs of electric vehicles	Effectively supports price competitiveness
Scale Effect	Scale advantages brought by 2.68 million units in sales	Improved procurement bargaining power

Changan Automobile’s affiliated company

(1292.HK) provides it with professional logistics services[8]:

• Main Business
  : Complete vehicle logistics, automotive raw material and component supply chain management, international logistics, etc.
• 2024 Revenue Forecast
  : RMB 8.36 billion, up 4.9% year-on-year
• Service Capability
  : Provide Changan Automobile with full-chain logistics support from raw materials to complete vehicles

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Changan Automobile’s layout in supply chain-related technology fields includes:

Technology Field	Application Direction	Partner/Independent R&D
SDA Architecture	Software and hardware decoupling	Independent R&D
Solid-State Battery Technology	Improve range and safety	Independent R&D + supplier cooperation
Intelligent Driving	High-level autonomous driving system	Huawei, Horizon Robotics
800V High-Voltage Fast Charging	Shorten charging time	Applied on Deepal brand

Changan Automobile’s technological innovations in supply chain digitalization:

• Intelligent Procurement System
  : Digital-intelligent procurement platform in cooperation with JD Industry
• Intelligent Customs Agent
  : AI technology applied to import and export management to achieve near-real-time response
• Supply Chain Visualization
  : Full-chain visual tracking system

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Based on the above analysis, Changan Automobile’s supply chain management capabilities can be summarized into the following dimension scores (full score: 5 points):

Evaluation Dimension	Score	Evaluation
Supplier Network Scale	4.5	Over 1,100 international suppliers, complete network
Supplier Relationship Management	4.2	Dual guarantee of strategic cooperation + quality audits
ESG Management Capability	4.0	Systematically upgraded ESG management framework
Digital-Intelligent Level	3.8	Promote digitalization in cooperation with JD Industry, etc.
Global Layout	4.0	Thailand plant, European market layout
Supply Chain Resilience	4.0	Diversification + sound financials
Cost Control Capability	3.8	Scale effect + technological cost reduction
Overall Score	4.04	Upper-mid level in the industry

Indicator	Changan Automobile	Industry Average	Advantage/Disadvantage
Supplier Audit Coverage Rate	80%	Approximately 70%	Advantage
Number of Tier 1 Suppliers	700+	500-800	Upper-mid level
Proportion of Global Suppliers	Approximately 30%	Approximately 25%	Advantage
Digital-Intelligent Transformation Progress	In progress	In progress	On par

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1. Stable Supplier Relationships
   : Established in-depth strategic partnerships with core suppliers such as CATL and Huawei
2. Leading ESG Management
   : Systematic supply chain ESG management framework ranks among the top in the industry
3. Improved Global Layout
   : Thailand plant put into operation, European market entered, high degree of supply chain globalization
4. Accelerated Digital-Intelligent Transformation
   : Cooperate with technology enterprises such as JD Industry to promote supply chain digitalization
5. Support from Central SOE Resources
   : After being upgraded to a new central SOE, supply chain resource integration capabilities have been enhanced

1. Depth of Tier 2 Supplier Control
   : Although incorporated into the APQP system, there is still room for improvement in control precision
2. Independent R&D Capability of Supply Chain Technologies
   : Still highly dependent on external parties for core supply chain technologies (such as chips, operating systems)
3. Collaboration Efficiency of Global Supply Chain
   : The collaboration efficiency between overseas plants and domestic supply chain needs to be optimized

Changan Automobile’s supply chain management capabilities showed a trend of accelerated upgrade in 2025. With:

• Deepening of the five-year strategic cooperation with CATL
• Advancement of Chenzhi Group’s platform-based operation
• Cooperation with JD Industry on digital-intelligent supply chain
• Release of overseas production capacity such as the Thailand plant

Changan Automobile’s supply chain management is expected to further develop towards the direction of “efficiency, transparency, resilience, and sustainability”, providing solid supply chain support for its sales targets of 3 million units in 2025 and 5 million units in 2030.

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[1] Changan Global Partners Conference 2024

[2] Changan Automobile Deepens Supply Chain ESG Management to Fortify the Line of Quality Integrity

[3] CATL, China Changan Automobile sign five-year strategic cooperation memorandum

[4] JD Industry Deeply Lays Out in the Automotive Industry, Joins Hands with Changan, Dongfeng, BYD, etc. to Upgrade AI+Digital-Intelligent Supply Chain Cooperation

[5] 2025 Automotive Industry Yearbook | Supply Chain Chapter: In-Depth Integration of Whole Vehicle and Component Enterprises, Scenarios Determine the Future

[6] Company Overview: 000625.SZ - Gilin AI Data

[7] Sales Exceed 1 Million in 2025: Ambitions and Layout of Changan New Energy

[8] Upstream Demand Improves, Automotive Logistics Industry Expected to Recover - Dongfang Wealth Research Report