Changan: Carmakers can’t live on vehicle sales alone, GM Zhao Fei warns

Industry pivot — product to ecosystem

Changan Automobile (长安汽车) general manager Zhao Fei told attendees at the Smart Electric Vehicle Development Forum (2026) that the auto industry has moved from single-product rivalry to competition over ecosystem value. Short sentence: margins are vanishing. Longer one: as manufacturers confront software-defined vehicles, connected services and cross‑sector partnerships, Zhao said traditional whole‑vehicle manufacturing thinking must be broken; reportedly he estimated global demand will remain split — about 70 million buyers for internal‑combustion cars and 30 million for new‑energy vehicles — underscoring why automakers can no longer rely solely on units sold, it has been reported that.

Changan’s performance and strategy

The warning arrives as Changan posts rapid volume gains. IT之家 reports March deliveries of 270,600 new vehicles, a month‑on‑month increase of 78%, with overseas shipments hitting 103,900 (+60%). Its sub‑brands are driving growth: Deep Blue (深蓝) sold 31,742 vehicles in March (S05 accounted for 17,586 and has cumulative sales topping 190,000), Avita (阿维塔) moved 5,143 units, and Changan Qiyuan (长安启源) delivered 36,875 (+102% month‑on‑month). The numbers show how Chinese groups are layering brands and products even as they push into services.

What Western readers should know

Why does this matter beyond China? Chinese OEMs are redefining monetization around software updates, subscriptions, energy and mobility services — areas that insulated them from margin erosion and help when export markets face regulatory scrutiny. Geopolitical headwinds matter too: trade controls on advanced chips and tightening scrutiny in Europe and North America increase the incentive to vertically integrate and to build revenue streams beyond hardware. Can carmakers find profitability in ecosystems rather than steel and glass? Changan’s GM thinks they must.