Chongqing, how to recreate another "Changan Automobile"?
In 2024, the production of new energy vehicles in Chongqing reached 953,200 units, a year-on-year increase of 90.5%, nearly 60 percentage points higher than the national average growth rate.
Why has the production of new energy vehicles in Chongqing grown so rapidly?
This is because Chongqing has created another "Changan Automobile".
01 The Rise of Seres
In 2024, the total automobile production in Chongqing reached 2.5401 million units, a year-on-year increase of 9.4%.
Among them, the production of new energy vehicles reached 953,200 units, a year-on-year increase of 90.5% compared to 2023.
Meanwhile, mainstream new energy vehicle models priced over 200,000 yuan made in Chongqing accounted for 48.3%, a significant increase of 21.6 percentage points within a year.
This indicates that the new energy vehicle industry in Chongqing has achieved both quantitative growth and qualitative improvement.
Which enterprises are driving the rapid growth of Chongqing's new energy vehicle industry?
The foundation comes from the local automotive giant, Changan Automobile.
In 2024, Changan Automobile sold over 2.68 million vehicles, a year-on-year increase of 5.1%, reaching a new high in the past seven years.
Among them, the sales volume of new energy vehicles reached 733,000 units, a year-on-year increase of 52.4%. Generally, the production volume and sales volume do not differ significantly.
Changan Automobile's Report Card in 2024
Considering that Changan Automobile has factories across the country, its production in Chongqing is estimated to be around 300,000 units.
It can be inferred that while Changan Automobile is the foundation of Chongqing's automotive industry, it is not the core driving force behind the rapid growth of the new energy vehicle industry.
The biggest variable is the new electric vehicle startup, Seres.
In 2024, Seres sold a total of 426,900 new energy vehicles, a year-on-year increase of 182.84%.
Among them, the new AITO M7 delivered over 190,000 units in 2024, ranking first in the sales of new electric vehicle startups for 12 consecutive months.
The AITO M9 received over 200,000 large orders within 12 months of its launch, with sales exceeding 151,000 units in 2024. It continuously ranked first in the sales of luxury vehicles priced over 500,000 yuan in the Chinese market, with sales nearly twice that of the second - ranked BMW X5.
All of Seres' production capacity is concentrated in Chongqing, making it the biggest contributor to the rapid growth of Chongqing's new energy vehicle industry.
In terms of the production and sales volume of new energy vehicles, Seres has surpassed Changan Automobile.
Let's also look at the market value, revenue, and profit of the two automakers.
Seres' Recent Stock Performance
Seres has a market value of 190 billion yuan, while Changan Automobile's market value is 126.8 billion yuan.
Seres' estimated revenue is between 144.2 billion and 146.7 billion yuan, and Changan Automobile's estimated revenue is 160 billion yuan.
Seres' estimated net profit is between 5.5 billion and 6 billion yuan, and Changan Automobile's estimated net profit is 6 billion yuan.
It can be seen that Seres' various data are comparable to those of Changan Automobile.
Chongqing now has a second "Changan Automobile".
02 Support from Chongqing
In December 2021, the first AITO model under Seres was launched.
It only took Seres a little over three years to grow from zero to 426,900 units in sales volume.
When talking about Seres' success, we can't ignore Huawei.
Seres' predecessor was Xiaokang Co., Ltd. In the early years, it partnered with Dongfeng Motor to establish Dongfeng Xiaokang Motor Co., Ltd., which produced Dongfeng Xiaokang minivans.
Around 2016, Seres began to layout its new energy vehicle business. Despite huge investments, it didn't show any signs of improvement and was on the verge of bankruptcy.
In March 2021, Xiaokang Co., Ltd. and Huawei held a signing ceremony for a cooperation memorandum, which became a turning point in the company's development history.
In April of the same year, Seres and Huawei launched the Seres Huawei Smart Selection SF5, but the overall sales volume was not satisfactory.
It wasn't until the launch of the AITO M5 that Seres officially started its rapid development.
The popularity of the AITO series models is inseparable from the support of Huawei's technology, brand, and sales channels.
What is less known is that behind Seres' success, there is also an unsung hero: the local government of Chongqing.
On November 27, 2024, Seres announced in a public statement that it would invest 8.164 billion yuan to acquire 100% of the equity of Chongqing Liangjiang New Area Longsheng New Energy Technology Co., Ltd., achieving full control of the "super factory" in Chongqing.
Seres' Announcement
The "super factory" that Seres intends to acquire is located in the Liangjiang New Area of Chongqing, covering an area of more than 2,700 mu.
The factory was completed and put into operation on February 5, 2024, with a planned production capacity of 700,000 units, mainly producing the AITO M9 model.
The question arises: Why does Seres want to acquire the "super factory"? Isn't it already Seres'?
The answer is that this factory was built by Chongqing for Seres.
The "super factory" was invested in and built by a local state - owned asset platform in Chongqing. After its completion, it was leased to Seres for use.
Now, with good performance and sufficient funds, Seres has bought back the factory.
Although it seems like a long - winded process, it actually brings great benefits to Seres.
Seres not only avoids the trouble of building a factory but also saves a large amount of capital in the early stage of operation, greatly reducing the operational risks.
Seres' "Super Factory"
In addition to the "super factory", Yufu Holdings Group, a local state - owned asset platform in Chongqing, has accompanied Seres throughout its growth.
As early as 2016, when Seres started building its first factory (Seres Liangjiang Smart Factory), Yufu Holdings Group invested 640 million yuan.
Subsequently, when Seres started building its second and third factories, Yufu Holdings Group invested 300 million yuan and 3.3 billion yuan respectively.
Together with other methods such as private placement, Yufu Holdings Group has invested a total of 4.55 billion yuan in Seres, leveraging 14 billion yuan in social capital investment.
This real - money investment not only solved Seres' immediate difficulties but also provided strong endorsement and confidence, offering strong support for Seres' rapid growth.
Chongqing's complete industrial ecosystem also provides the necessary "nutrients" for Seres.
Just in Jiangjin District of Chongqing, there are 25 large - scale auto parts enterprises supplying parts to Seres.
Wencan Group, located in the Liangjiang New Area, has built a 9,800 - ton super die - casting machine for Seres.
This is the world's first and largest two - plate die - casting machine, which can integrally die - cast large - scale automotive structural parts, reducing the number of parts from hundreds to one or two in the traditional process and increasing production efficiency by 300%.
Wencan Group's 9,800 - ton Super Die - casting Machine
The use of the super die - casting machine gives Seres' products significant advantages in terms of lightweight design, safety, and production efficiency, enhancing the market competitiveness of its products.
Chongqing has created Seres.
03 Return to the Top
By supporting Seres, Chongqing has received rich rewards.
A few years ago, Seres' stock price was only 40 yuan, and now it has more than tripled.
Yufu Holdings Group's investment in Seres is a successful venture investment.
More importantly, the rise of Seres has rejuvenated Chongqing's automotive industry.
Chongqing is one of the seven major automotive production bases in China.
From 2014 to 2016, Chongqing's automobile production ranked first in the country for three consecutive years.
In 2016, Chongqing's automobile production reached a record high of 3.1562 million units.
Unexpectedly, just two years later in 2018, it plummeted to 1.7207 million units.
In 2019, it further dropped to 1.383 million units, less than half of the peak level.
Chongqing's Automobile Production from 2014 - 2019
The decline in Chongqing's automobile production is due to a profound transformation in the automotive industry.
The rise of domestic brands and new energy vehicles has eroded the market share of joint - venture manufacturers and fuel - powered vehicles.
Compared with regions such as Guangdong, Shanghai, and Jiangsu, Chongqing's automotive manufacturers were slow to transform in the face of the industry transformation and gradually fell out of the first - tier group.
At that time, there was even a saying that "cars made in Chongqing are sold by the catty" for the low - end "Chongqing - made" cars.
In 2018, Chongqing issued the "Guiding Opinions on Accelerating the Transformation and Upgrading of the Automotive Industry", clearly stating:
Focus on the development of new energy and intelligent connected vehicles. Promote the in - depth integration of the automotive industry with advanced manufacturing, information and communication, the Internet, big data, and artificial intelligence. Take innovation as the key, consolidate advantages, address weaknesses, improve quality, create brands, and increase efficiency. Promote the transformation and upgrading of the city's automotive industry and achieve a shift from high - speed growth to high - quality development.
Transformation inevitably brings pain.
Chongqing's automotive industry has persevered.
After three years of painful transformation, Chongqing's automotive industry began to stabilize and recover in 2020. In 2023, the production volume recovered to 2.318 million units, and it continued to maintain a high - speed growth trend in 2024.
Chongqing's Automobile Production from 2016 - 2023
The biggest increase in the successful transformation of Chongqing's automotive industry comes from Seres.
Yesterday, Chongqing held the "First Meeting of the New Year", clearly stating that it will continue to expand and strengthen the "33618" modern manufacturing cluster system.
The first "3" in the "33618" modern manufacturing cluster system refers to focusing on building three trillion - level leading industrial clusters.
Among them, the intelligent connected new energy vehicle industrial cluster ranks first.
Driven by Seres, Chongqing's trillion - level intelligent connected new energy vehicle industrial cluster is taking shape at an accelerated pace.
Chongqing has formed an industrial system including 19 vehicle manufacturers and more than 1,200 large - scale auto parts enterprises, covering all three major systems, 12 assemblies, and 56 components of intelligent connected new energy vehicles.
In 2025, Chongqing has set a new goal:
Strive to reach an annual automobile production of 2.6 million units, including 1.3 million new energy vehicles.
Chongqing is making a comeback.