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Chongqing Changan Automobile Company (重庆长安汽车股份有限公司|长安汽车)

Chongqing Changan Automobile Company is a publicly listed auto manufacturer headquartered in Chongqing, China. In 2019 it had US$10.2 billion in revenue and sales of over 1.2 million vehicles. 98 percent of Changan’s sales are in China. The company also sells small volumes of vehicles in Russia, the Middle East and South East Asia.

Summary

Chongqing Changan Automobile has a performance score of 7.7 out of 20 against the well below 2-degree pathway. This score is slightly lower than Changan’s 2019 score of 7.8, when Changan was assessed against the less ambitious 2-degree pathway.

Since the previous assessment, Changan shows improved efficiency of its internal combustion engines at a rate that is fully aligned with its well below 2-degree pathway. The company has also made some reductions in its vehicle in-use emissions intensity, which has declined by 10 percent since the end of the previous assessment period (2017), though this still falls short of the 22 percent required by its decarbonisation pathway. Changan is moving into car-sharing business models. The company’s subsidiary Changan Travel is substantial, with 1.8 million registered users. However, limited details on profitability and growth plans were found for this business model.

Total score: 7.7/20
Assessment Note: Chongqing Changan Automobile received a full ACT assessment in 2019.

Performance module name	Performance module score	Rank (0-30)
Targets	0.0 / 3	#19
Material Investment	0.0 / 0.4	#12
Intangible Investment	2.4 / 2.4	#1
Sold product performance	4.4 / 7	#11
Management	0.2 / 2.2	#24
Supplier	0.0 / 1.2	#23
Client	0.0 / 0.8	#15
Policy Engagement	0.6 / 1.2	#6
Business Model	0.2 / 1.8	#19

A less positive trend observed is that the growth of low-carbon vehicle share observed in the previous assessment has stalled, resulting in worse performance on this indicator. This assessment showed that Changan has continued to build on its ‘Shangri-La Plan’ which was originally published in 2017. The company has raised ¥2.84 billion (US$406 million) in capital investment through the reform of its new energy vehicle subsidiaries and plans to set up eleven innovation centres with technology partners. The plan still lacks a long-term horizon and supporting analysis.

Changan can add credibility to its plan by embedding it with long-term emissions reduction targets and stress testing it against a well below 2-degree scenario. Changan also performs poorly on supplier engagement and new business models. Improving performance across these areas could enhance Changan’s competitiveness by demonstrating its commitment to the low-carbon transition.

See results for

2019

More about the company

Headquarters: China
Ownership structure: Publicly listed
Revenue (2019): US$10.2 billion
Number of vehicles sold (2019): 1,205,898
Website: http://www.globalchangan.com/