The Chinese automotive industry is about to change the balances. Dongfeng and Changan, the two major companies in the country, are conducting negotiations to unite their operations. This merger means the birth of a new giant in the industry, which will leave the leader byd in the Chinese market if it happens.

China’s automotive giants Dongfeng and Changan are preparing to unite

This strategic partnership between Dongfeng and Changan will bring together China’s largest automobile manufacturers. Dongfeng, known for its wide range of passenger and commercial vehicles; Changan, which is a pioneering in electric and smart vehicles, will combine complementary aspects.

According to analysts, this strategic merger will be a game exchanger for the Chinese automotive industry. By combining Dongfeng and Changan forces, he will gather resources, technologies and market expertise in a common pool.

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This potential merger is taking place at a time when the Chinese automotive market emphasizes the adoption of electric vehicles and emphasizes smart vehicle technologies. Of course, both companies perform their operations in China and not opened to the European market.

On the other hand, BYD, which exhibited a serious rise in terms of sales figures, has succeeded in being the largest automotive manufacturer of China by leaving SAIC behind. BYD sold 419 thousand 426 vehicles with a significant increase of 45 percent last month, and this means that the number of sales was broken for the fourth time in the number of sales.

The two companies said that restructuring will not affect the stock market activities. However, how the shareholders of the two organizations will be managed remains unclear.