Total sales volume in October was 0.251 million vehicles, up 17.7% month-on-month

The company released the October production and sales report. The company's total sales volume in October was 0.251 million vehicles, up 4.1% year on year and 17.7% month on month; cumulative sales volume from January to October was 2.156 million vehicles, up 2.1% year on year. Autonomous passenger car sales in October were 0.168 million units, up 3.4% year on year and 29.9% month on month; cumulative sales volume from January to October was 1.329 million units, down 0.9% year on year.

Independent new energy brands continued to emerge, boosting sales volume of Changan Automobile's own brand NEV sales volume of 0.085 million vehicles in October, up 48.6% year on year and 56.8% month on month; cumulative sales volume from January to October was 0.533 million vehicles, up 46.4% year on year. Among them, Changan Qiyuan sold 0.018 million vehicles in October; Deep Blue sold 0.029 million vehicles in October; and Avita sold 0.01 million vehicles in October.

In terms of new cars, Avita 07 was officially released on September 26. The new car offers 6 versions of pure electric and extended range. The price range for the pure electric version is 0.2299 million yuan to -0.2899 million yuan; the price range for the extended range version is 0.2199 million yuan to -0.2799 million yuan, of which the extended-range model is equipped with Kunlun Range Extender Technology for the first time; all models are equipped with HarmonyOS Hongmeng cockpit and Huawei Qiankun Smart Driving ADS 3.0. The Avita 07 was launched in 20 hours, with 11,673 units; the sales volume of all Avita models doubled year over year, reaching a record high, showing strong market demand. On November 2, the Avita 12 Dual Power was officially launched, which is expected to further boost sales.

On September 20, Deep Blue L07 was officially released. The price range for the pure electric version was 0.1519 million yuan to -0.1669 million yuan; the price range for the extended range version was 0.1519 million yuan to -0.1739 million yuan. The Deep Blue L07 is the first mid-size sedan under 0.2 million yuan, equipped with the Huawei Qiankun Smart Driving ADS SE.

New self-branded new energy vehicles have been introduced, and the product strength is strong. It is expected to continue the sales momentum and continue to gain strength.

Independent brands continue to be strong overseas while accelerating overseas expansion

Changan Automobile sold 0.031 million vehicles overseas in October 2024, up 33.9% year on year and 0.9% month on month; from January to October, the cumulative overseas sales volume of its own brand was 0.319 million vehicles, up 61.8% year on year, and continued to be strong overseas. In terms of overseas layout, in Southeast Asia, Changan Automobile will build the first base integrating research, production, supply, sales, and transportation, and radiate the global right-hand drive market. The construction of the Rayong plant project in Thailand is progressing steadily. It is expected to be officially put into use in the first quarter of 2025, with an initial output of 0.1 million units, and the subsequent expansion to 0.2 million units. In the Central and South American market, Changan Automobile will focus on the fuel vehicle sector, using the Mexican market as an anchor. The three new energy brands, Deep Blue, Changan Qiyuan, and Avita, will be launched in the region this year. Changan's sales volume is expected to reach 0.2 million vehicles by 2030. A sales company was set up in Mexico in February of this year to better facilitate localized operations.

Investment advice: We expect the company's net profit to be 8.56/11.4/12.72 billion in 2024-2026, maintaining a “buy” rating.

Risk warning: Sales of new models fall short of expectations, high-end models fall short of expectations, and increased market competition.