Changan's early origins can be traced back to 1862 when
Li Hongzhang set up a military supply factory, the Shanghai Foreign Gun Bureau. In 1863, it was renamed the Suzhou Arsenal. By 1865, Li Hongzhang relocated the Suzhou Arsenal to Nanjing, and became the largest arsenal in China at the time, known as the Jinling Arsenal. By 1899, it had grown into a major arms production center, equipped with nearly a thousand machines and employing 1,700 artisans, solidifying its position as one of China's primary military manufacturing hubs. In 1937, when the
Second Sino-Japanese War broke out, as Shanghai fell and Nanjing faced imminent threat, Nationalist government decided to relocate Jinling Arsenal westward to Chongqing After relocating, it was renamed the 21st Arsenal. In 1984, Changan entered a significant phase of transformation by signing a technical trade cooperation agreement with Japan's
Suzuki Motor Corporation. This partnership focused on the development of mini vehicles and engines, marking a pivotal step in the company's evolution. On November 15, 1984, the first batch of Changan-branded vehicles—the SC112 mini van and the SC110 mini truck—rolled off the production line. It marks the official transition of Changan from a military enterprise to a civilian vehicle manufacturer. In 2013,
Changhe was transferred to
Jiangxi provincial government for restructuring, and later became a majority-owned subsidiary of another Chinese automaker
BAIC Group. As of 2010, China Weaponry Equipment is the
parent company of this state-owned automaker, and that year Changan became the fourth most-productive car manufacturer in the
Chinese automobile industry by selling 2.38 million units. The company also released a new logo for its consumer offerings in 2010 while commercial production retains the former red-arch brand. Although it only allowed the company to achieve fourth place among domestic automakers in terms of production, Changan made over 2 million whole vehicles in 2011. In 2012, it was reported that 72% of production was dedicated to passenger vehicles, but this count likely conflates private offerings and
microvans, tiny commercial trucks and vans that are popular in China. In November 2012, Changan Ford Mazda Automobile was divided into two new joint venture companies as part of
Ford's divestment from Mazda: Changan Ford and Changan Mazda. In October 2017, Changan said it plans on ending production of vehicles powered solely by internal-combustion engines by 2025, as the automaker will be selling only plug-in hybrid vehicles and all-electric vehicles from 2025 as a result of climate change and air pollution issues in China as well as stringent emissions regulations. The company stated that this is because
Government of China announced that it has passed legislation that will ban new ICE-powered vehicles by the mid-2030s, due to high air pollution and due to China's reiterated commitment in the United Nations
Paris Agreement as the automaker wants to remain compliant with the government's automotive emission standards. The automaker is joining
Volvo Cars,
Jaguar Land Rover,
FAW Group,
BYD Auto,
Lotus Cars, and several other automakers in planning on ceasing production of ICE-powered vehicles in the coming years. In December 2023,
Huawei announced it plans to move core technologies and resources in its smart car unit to a new joint venture with Changan. The new brand
Avatr Technology, formerly the Changan-Nio, will engage in research and development, production, sales and service of intelligent automotive systems and component solutions. Changan and its affiliates plan to acquire no more than 40 percent of the new company's equity, with the specific amount of capital contribution and term to be separately negotiated between the two parties. On 9 February 2025, Changan Automobile and
Dongfeng Motor both announced that they were both in the process of potentially merging with other unnamed state-owned enterprises, sparking rumors that the two conglomerates would be merged with Dongfeng becoming the dominant partner. Later on 4 June 2025, Changan and Dongfeng both announced that they no longer had plans for mergers. On 5 June 2025, the
State Council announced that it would spin off the automotive business entity of
China South Industries Group Corporation, the Changan Automobile, into an independent central state-owned enterprise that directly under the management of
State-owned Assets Supervision and Administration Commission of the State Council (SASAC). The spin-off marks the substantial decoupling of the long-standing close ties of Changan's military-industrial background and it will officially be elevated to a
Sub-Ministerial-Level Enterprise. In July 2025, China Changan Automobile Group Co., Ltd., Changan Automobile's new legal independent legal entity after being spun off was established, becoming the 100th central state-owned enterprise and the 3rd automotive enterprise under
SASAC and first central state-owned enterprise in
Chongqing. The new company was registered in Chongqing with capital of 20 billion yuan. Zhu Huarong, the former president of Changan Automobile, was appointed as the legal representative and chairman by SASAC. Later on 29 July 2025, the founding ceremony of China Changan Automobile Group Co., Ltd. was held in Chongqing. == Leadership ==