Changan CEO: Avoid Price Wars, Prioritise Strong Localisation
CHONGQING, KOMPAS.com - The intense competition in the global automotive industry often prompts several manufacturers from China to undertake massive market penetration by offering a range of low-priced products.
However, a different manoeuvre is being adopted by the giant automotive brand, Changan Automobile.
Instead of joining in on slashing prices, this manufacturer prefers a mature approach by highlighting product differentiation.
“Therefore, in our overseas development strategy, Changan does not do anything very aggressive compared to other Chinese brands,” said Huarong to reporters during the Changan Global Strategy Launch press conference on Wednesday (22/4/2026).
Huarong emphasised that his company is reluctant to get dragged into the current trend of price competition being widely pursued by its compatriots to capture market share.
To realise this, sales volume is not the only measure of success.
He added that in overseas markets, besides paying attention to the scale of trade volume, what Changan pays most attention to and prioritises is localisation.
This step is considered very crucial, given the current changing industry dynamics and varying regulatory challenges in each region.
“As we all know, the competition in the global automotive industry is currently undergoing major changes. Many countries are implementing trade protectionism policies or other entry barriers,” said Huarong.
In response to these increasingly stringent regulations, the manufacturer chooses to blend in and invest more deeply in the destination countries of its expansion.
“For Changan, the best way to face this situation is through deep localisation. We want to shift from merely exporting products to taking root in the local market,” said Huarong.
As a concrete step from this commitment, in accordance with laws and regulations in various global regions, Changan will strengthen cooperation with local partners and governments.
The aim is to reduce risks while promoting joint development in the target countries, from technology, economy, to job creation.
“With this approach, we build a harmonious development model that is mutually beneficial (win-win solution) and sustainable,” he said.