Changan Automobile, the Chinese partner of Ford Motor and Mazda Motor, has made a foray into Europe after setting up its first subsidiary on the continent, a marketing and service unit in Germany.
The fourth-largest state-controlled carmaker in mainland China, Changan said on Tuesday that its German unit, Changan Automobile Deutschland, will perform marketing and engineering research to facilitate the company’s further expansion in Europe.
“Establishment of the German subsidiary represents Changan’s determination in making a solid presence in Europe,” the carmaker said in a statement. “It is another step to enforcing our Vast Ocean strategy.”
Vast Ocean refers to Changan’s ambition to internationalise its businesses, with plans to build and sell more cars outside mainland China, where cutthroat competition has squeezed profit margins for both electric and petroleum-driven vehicles.
In April 2023, the company, based in Southwest China’s Chongqing municipality, said it would invest US$10 billion abroad by 2030, with the goal of selling 1.2 million vehicles a year outside China.