Changan’s electric-vehicle brand Deepal has taken over Beijing Hyundai’s Chongqing manufacturing plant for CN¥1.62 billion ($230 million), securing the facility at a steep discount after several failed sale attempts.
The plant’s branding was changed in late October, though Deepal has not yet announced which models it will build there or when production will resume.
Construction of the Chongqing factory began in 2015 with a total investment of CN¥7.7 billion. It entered operation in August 2017 with an annual capacity of 300,000 vehicles, but ceased production in December 2021.
The facility was later transferred to the state-controlled Chongqing Liangjiang New Area Yufu Industrial Park Construction Investment at the end of 2023.
Attempts to sell the plant started in August 2023 with a minimum price of CN¥3.68 billion. After two reductions, to CN¥2.58 billion and CN¥1.917 billion, the final sale concluded at CN¥1.62 billion. Covering 1.87 million square meters, the site was Beijing Hyundai’s fifth complete vehicle plant in China.
Deepal’s parent company, Changan, had a production capacity of 2.25 million vehicles in 2024 with an 84% utilization rate. The group aims to reach sales of three million units in 2025, supported by rising overseas demand.
The acquisition is expected to ease capacity constraints as Changan scales across its brands. Deepal sold 36,792 vehicles in October, with sales from January to October rising 57.1% year-on-year.
The deal reflects a broader trend of Chinese automakers acquiring underused joint-venture facilities as foreign brands lose market share.
Li Auto bought a separate Beijing Hyundai plant in 2021, while Geely acquired a SAIC-GM site in Shenyang earlier this month. Deepal currently operates major factories in Nanjing and Beijing and plans to launch up to 30 new models by 2030.
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