Chinese state cars from Dongfeng and Changan are considering the possibility of merging

Both companies on Sunday, February 9, reflected in their exchange requests that their shareholders who have actions of shares of shares are studying the possibility of asset transactions, as a result of which the property of the companies can change. The details of the possible transactions are not specified.

In the context of the reports of a potential fusion, Dongfeng raised on Monday by 26% and amounted to 4.06 dollars from Hong Kong ($ 0.52), Changan’s documents rose 4.7%, to 14.18 yuan ($ 1.94).

“The messages of both companies, apparently, indicate their potential fusion, although they did not give a clear response to this. The Chinese government has reasons to encourage the consolidation of the automobile sector, since most industry actors are affected by the most severe competition, “said Ivan Li, the loyal foundations of heritage management.

As a result of the merger, the United Dongfeng and Changan company will become the largest car concerns in China in terms of sales, surpassing the current leader of the electric vehicle market by, writes SCMP. In 2024, Dongfeng sold 2.48 million cars, Changan – 2.68 million.

The publication recalled that Continental China has been the largest car market since 2009. According to the car consulting company, the total production capacity of the industry is 40 million cars per year, and the volume of sales is of approximately 23 million units.