Dongfeng, the Chinese joint venture partner of Nissan and Honda, sold 1.54 million passenger vehicles in 2024, down 11.5% from 2023.Shares of Dongfeng Motor soared as much as 85.8% in Hong Kong on Monday after the Chinese automaker said its parent was planning a restructuring, stoking speculation that some of the state-owned players could be merged as competition grows.
The stock jumped to HK USD 6, its highest since July 2022, shortly after the open, before paring gains later to be up by about 20%.
Dongfeng Motor said on Sunday that the restructuring by its parent, Dongfeng Motor Corporation, may lead to a change in the controlling shareholder structure but would “not result in a change to the actual controller”. Shares in its Shanghai-listed sister unit jumped by their 10% maximum daily limit.
Changan Auto, which like Dongfeng is owned by the central government, published a similarly worded statement about a restructuring plan by its parent on Sunday, stirring speculation on Chinese social media that the two companies may be merged.
Shares in Changan Auto climbed 4.8% in Shenzhen.
The central government fully owns the parent companies of both Dongfeng Motor and Changan Auto, and keeps majority ownership of the listed units.
China has been urging its state-owned automakers, which have been reliant on foreign joint venture partners to contribute sales and profits, to improve independent technology, innovation and competitiveness, especially in new energy vehicles.
Foreign brands, especially Japanese ones, have lost market share to Chinese automakers such as BYD in the past three years as they have failed to roll out competitive electric cars in the world’s largest auto market.
BYD, owned by Chinese entrepreneur Wang Chuanfu, rose to be the fifth largest automaker globally in 2024 with its annual sales volume surpassing those of General Motors, Honda and Ford.
Dongfeng, the Chinese joint venture partner of Nissan and Honda, sold 1.54 million passenger vehicles in 2024, down 11.5% from 2023.
Besides Dongfeng and Changan, the Chinese central government owns FAW, which is not listed.
