Changan Automobile 2026 Semi-Annual Report Released: Overseas Sales Surge 51.9%, Domestic Profit Halved

Recently, Changan Automobile released its 2026 semi-annual financial report. Data shows the company achieved RMB 65.634 billion in operating revenue for H1 2026, down 9.71% year-on-year; net profit attributable to shareholders of listed companies stood at RMB 817 million, a 64.32% decline year-on-year; and net profit after deducting non-recurring gains and losses totaled just RMB 251 million — down sharply by 83.01% year-on-year.

In terms of sales volume, Changan Automobile delivered 1.1189 million vehicles in H1 2026, down 17.44% year-on-year. The company attributed the overall decline primarily to weak domestic demand and persistent industry-wide price competition. Among these, new energy vehicle (NEV) sales reached 414,000 units. Continued product iteration across its Avatr, Deepal, and Changan Nevo brands has steadily strengthened its NEV portfolio.

Overseas markets, by contrast, posted robust growth: vehicle exports totaled 455,000 units, up 51.9% year-on-year; overseas business revenue hit RMB 21.942 billion — surging 78.77% year-on-year and rising to 33.43% of total revenue. Notably, gross margin for overseas operations reached 20.13%, significantly higher than the domestic business's 11.67%, underscoring the profitability advantage of its international expansion strategy.

Financially, net cash flow from operating activities was negative RMB 11.413 billion, deteriorating by 32.60% year-on-year; gross margin for the automobile manufacturing segment remained stable at 14.50%, down only 0.08 percentage points year-on-year. R&D investment totaled RMB 3.155 billion, down 3.93% year-on-year, with key focus areas including hybrid powertrains, electric drive systems, batteries, and intelligent driving technologies. The company also advanced cost optimization and efficiency improvements, with both sales and administrative expenses declining year-on-year.

In production capacity and technology deployment, Changan has established in-house capabilities for 580,000 battery PACK units, 750,000 electric drive units, and 500,000 electronic control units annually; its Lanjing Super Hybrid and Taihang distributed electric drive systems are now in mass production; the WE20TG-AA hybrid engine prototype has rolled off the line; and its Golden Bell Armor Battery, alongside L3/L4 autonomous driving technologies, continues iterative development. Strategically, the "Third Entrepreneurship – Innovation & Entrepreneurship Plan 9.0", the "Shangri-La New Energy Plan", and the "Beidou Tianzhu Intelligentization Plan" are progressing in tandem.

The report also highlights multiple risks: ongoing domestic price wars continue squeezing profitability; volatility in prices of critical raw materials such as lithium carbonate and semiconductors; overseas operations face uncertainties related to exchange rates, trade barriers, and geopolitical factors; and market reception of new brands and models remains uncertain. Industry analysts believe Changan is undergoing structural transformation pains — leveraging high overseas growth to offset intensifying domestic competition — though long-term sustainability remains to be seen.